Proposal: Focus Of The Study

This study confines comparative analysis of financial performance between two joint venture banks namely, HIMALAYAN Bank Limited and NABIL Bank Limited. Financial analysis covers financial ratio analysis, portfolio trend analysis of two joint venture bank. Both of these banks are working under the same condition and problems, opportunities for the banks and threats to the firm are also similar. Thus, this attempt would be relevant to make a comparative analysis of these two banks. Main focus of this study will be on aspect such as liquidity, profitability activity, income and expenditure patterns. The trend analysis is as indication about the future operation. “Financial analysis is the process of determining the significant operating and financial characteristic of a firm from various accounting data and financial statement. Financial ratio analysis is a widely use tool of financial analysis and its performance. The goal of such analysis is to determine the efficiency and the performance of the firm’s management as reflected in the financial records and report” (John J Hampton, Financial Decision Making, July 1983, p121)

This study focuses on :

Ø  Income and expenditure analysis.

Ø  Correlation analysis.

Ø  Trend analysis.

Financial ratio analysis identifies the financial strength and weakness of both joint venture banks with the help of basic financial statement namely profit and loss account, balance sheet and cash flow statement. It helps to measure the banks liquidity, leverage, activity and profitability ratio in rational way.