Research Proposal on Performance of Listed Commercial Banks and Returns to Investors Sample
CHAPTER I
INTRODUCTION
1.1 Background of the Study
The study of performance of listed commercial banks and returns to investors occupies an important role in the development of capital market. Development and expansion of capital market are essential for the rapid economic growth of the country. Capital market helps economic development by mobilizing long term capital required for the productive sectors. It is vital to long term growth and prosperity of the economy since it provides the channel through which needed funds can be raised. Bank is a financial institution, which plays significant role in the development of the country. It helps the growth of agriculture, trade, commerce and industry of the national economy. Banking institution are inevitable for the resources mobilization and all round development of the country. They have resources for economic development and they maintain economic confidence of various segments and extend credit to people. These banks give different types of services to people. Basically, banks performs various types of services like collection of deposits from the public , granting loans to the investors in different sectors, overdrafts , guarantees against payment , letter of credit, discounting bills, selling of shares, agency functions and so on. The main objective of the commercial banks is to collect deposits and to provide loan and mobilize scattered savings through various schemes and deploy them in different sector of the economy for the economic development of the country. The first commercial bank in Nepal bank Ltd was established in 1994 B.S. in non-government sector. The second commercial bank is Rastriya Banijaya Bank Ltd., which has been established in 2021 B.S., a fully owned government bank. Then after, other banks were established gradually.
1.2 Meaning of Bank
The banking business has its genesis form its function of lending. Lending is the most fundamental function of a bank. The
INTRODUCTION
1.1 Background of the Study
The study of performance of listed commercial banks and returns to investors occupies an important role in the development of capital market. Development and expansion of capital market are essential for the rapid economic growth of the country. Capital market helps economic development by mobilizing long term capital required for the productive sectors. It is vital to long term growth and prosperity of the economy since it provides the channel through which needed funds can be raised. Bank is a financial institution, which plays significant role in the development of the country. It helps the growth of agriculture, trade, commerce and industry of the national economy. Banking institution are inevitable for the resources mobilization and all round development of the country. They have resources for economic development and they maintain economic confidence of various segments and extend credit to people. These banks give different types of services to people. Basically, banks performs various types of services like collection of deposits from the public , granting loans to the investors in different sectors, overdrafts , guarantees against payment , letter of credit, discounting bills, selling of shares, agency functions and so on. The main objective of the commercial banks is to collect deposits and to provide loan and mobilize scattered savings through various schemes and deploy them in different sector of the economy for the economic development of the country. The first commercial bank in Nepal bank Ltd was established in 1994 B.S. in non-government sector. The second commercial bank is Rastriya Banijaya Bank Ltd., which has been established in 2021 B.S., a fully owned government bank. Then after, other banks were established gradually.
1.2 Meaning of Bank
The banking business has its genesis form its function of lending. Lending is the most fundamental function of a bank. The
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