Proposal: INTRODUCTION-Back Ground Of Study

Nepal is landlocked country with agro based economy. The country is divided into three parts (i.e. Mountains, Hills, Terai Region) with the geographical nature. Nepal is one of the least developed and very poor country in the world and the natural disaster occurred this year, the economy of the country is worse. More than 81% of the people are still in rural areas and most of them are deprived minimum physical facilities, which is necessary for human being. Nepalese economy is dependent on traditional agriculture. Agriculture sector contributes only 34.70% of the total GDP and is main supplier of raw materials to industries. Development of agriculture sector helps not only to solve the problem of unemployment but also help in the economic development.

Agriculture is still the backbone of Nepalese economy. Economy development is not possible without agriculture development. National planning commission has given more emphasis to this sector, but the real picture of this sector is very poor. This is because Nepal has not been able to provide basic facilities to the farmer like irrigation, electricity and transportation. Despite being second richest in water resources in the world we are compelled to pay dear charge in the world. “Agriculture provides employment opportunities to more than 66% of labour forces however it contributes just 34.70% of GDP.” (DOA of Nepal, Nepal Government website data).

The government of Nepal formulated a policy to develop possible agro based industries for atleast to substitute import of industrial & consumable goods. The basic goal of government policy & self-sufficiency where as other were to generate revenue by operating industrial unit and creation of employment opportunities through this sector.

Financial sector is the lifeblood of the commercial and industrial activities. So commercial bank and other financial institutions are backbone for trade and industry in country. They collect the saving from community and transfer to the require sector of trade and industries, so that banking sector development is necessary to economy development.

In the overall development of the banking system in Nepal, the 'Tejarath Adda' may be regarded as the father of modern banking institution and for a quite a long time. It delivered a good service to government employees as well as to general public. However, the concept of modern financial institutions in Nepal was introduced when late former Prime Minister Shree Judda Samser Jung Bahadur Rana established first commercial bank, Nepal Bank Ltd. in 1994 B.S. Before establishment of Nepal Bank Ltd., People fulfilled their credit needs from unorganized market of private money lenders. Presently, there are thirty-one commercial banks and eighty-seven development banks operating their financial activities in the different part of country. They provide modern banking facilities like ATM card, Debit Card and Credit Card and Master Card to their valuable customers.

The main objective of this study was comparative study of financial performance of two joint venture banks, HIMALAYAN Bank Ltd & NABIL Bank Ltd.