Need of Project

Usually all persons want money for personal and commercial

purposes. Banks are the oldest lending institutions in Nepal
scenario. They are
providing all facilities to all citizens for their own purposes by
their terms. To survive in this modern market every bank
implements so many new
innovative ideas, strategies, and advanced technologies. For
that they give each and every minute detail about their
institution and projects to Public.
They are providing ample facilities to satisfy their customers
i.e. Net Banking, Mobile Banking, Door to Door facility, Instant
facility, Investment
facility, Demat facility, Credit Card facility, Loans and
Advances, Account facility etc. And such banks get success to
create their own image in public and corporate world. These
banks always accepts innovative notions in Indian banking
scenario like Credit Cards, ATM machines, Risk Management
etc.
So, as a student business economics I take keen interest in
Nepalease economy and for that banks are the main source of
development.
So this must be the first choice for me to select this topic. At
this stage every person must know about new innovation,
technology of procedure new schemes and new ventures.

Meaning of Bank
The word bank means an organization where people and business
can invest or borrow
money; change it to foreign currency etc. According to Halsbury “ A
Banker is an
individual , Partnership or Corporation whose sole pre-dominant
business is banking ,
that is the receipt of money on current or deposit account, and the
payment of Cheque
drawn and the collection of cheque paid in by a customer’’.

ABBREVIATIONS USED
BOK
:
Bank of Kathmandu Ltd.
HBL
:
Himalayan Bank Ltd.
NIC
:
Nepal Industrial And Commercial Bank
ATM
:
Automatic Teller Machine
BOD
:
Board Of Directors
C
:
Capital
A
:
Assets
M
:
Management
E
:
Earnings
L
:
Liquidity
CAR
:
Capital Adequacy Ratio
CCR
:
Core Capital Ratio
NRB
:
Nepal Rastra Bank
TCF
:
Total Capital Fund
TRWA
:
Total Risk Weighted Assets
TCC
:
Total Core Capital
PL
:
Performing Loan
NPL
:
Non- Performing Loan
LLPTNPL
:
Loan Loss Provision To Non –Performing Loan
LLPTTL
:
Loan Loss Provision To Total Loan
LLP
:
Loan Loss Provision
TL
:
Total Loan
SE
:
Staff Efficiency
NPAT
:
Net Profit After Tax
EPS
:
Earning Per Share
ROA
:
Return On Assets
ROE
:
Return On Equity
CRR
:
Cash Reserve Ratio
C& B
:
Cash And Bank Balance

The Origin and Use of Banks

The Word ‘bank’ is derived form the Italian word ‘banko’ signifying a
bench, which was
erected in the market-place, where it was customary to exchange
money. The Lombard
Jews were the first to practice this exchange business, the first bench
having been
established in Italy A.D. 808. Some authorities assert that the
Lombard merchants
commenced the business of money-dealing, employing bills of
exchange as remittances,
about the beginning of the thirteenth century.
About the middle of the twelfth century it became evident, as the
advantage of coined
money was gradually acknowledged, that there must be some
controlling power, some
corporation which would undertake to keep the coins that were to bear
the royal stamp up
to a certain standard of value; as, independently of the ‘sweating’
which invention may
place to the credit of the ingenuity of the Lombard merchants- all coins
will, by wear or
abrasion, become thinner, and consequently less valuable; and it is of
the last importance,
not only for the credit of a country , but for the easier regulation of
commercial
transactions, that the metallic currency be kept as nearly as possible
up to the legal standard. Much unnecessary trouble and annoyance
has been caused formerly by negligence in this respect. The gradual
merging of the business of a goldsmith into a bank
appears to have been the way in which banking, as we now
understand the term, was
introduced into England; and it was not until long after the
establishment of banks in
other countries-for state purposes, the regulation of the coinage, etc.
That any large or
similar institution was introduced into England. It is only within the last
twenty years that
printed cheque have been in use in that establishment. First
commercial bank was Bank
of Venice which was established in 1157 in Italy.