Possibility of growth of commercial bank in Nepal

In this country the banks are limited on only the town where as more than 76 percent are living in  the rural area.Due to the lack of development of physical infrastructure like transportation, electricity, drinking water,health etc made difficulty to growth of bank to expansion their area till the rural area however now these services or services of transportation, electricity,and other thing are increasing rapidly like that bank are going in these places.In Nepal there is a great possibility of growing the banking market for this it should be provide the banking education to the general people, made aware about the banking services and also about the benefit od using bank.

Modern services providing commercial bank

As the world is running through internet like that the banking services are also become internet based, in other word bank are providing the banking services from inside of room for every corner of the world.Nepalese commercial bank has also adopted the modern banking services to their customer.Modern banking services refers ATM service, mobile and internet banking, IME services and home transaction. People need not go to the bank for the banking services now it is possible to do any transaction  through the home.It has also provided the home shopping services which mean bank made payment directly to buying by the account holder. 

Role of commercial bank in development

Nepal is  one of the least developed country in the country and the financial market is not so developed. For the development of the all round development of the country it is needed to growth or development of the banking sector which provide the financial resources.if there is availability of  money than the different development program can be operate. In Nepal bank are providing the services of agriculture loan, business loan small  cottage industry loan and individual loan which has directly helped to the economic development of the country.

Commercial bank in rural areas

Nepal is the rural country at least 76 percent people lives in the rural areas but unfortunately people of the rural area are unknown about the  bank and financial institution, it is the main problem and threaten to the Nepalese commercial bank and financial institution.In this country some of such places and people in which the name bank is not heard until now. In latest time commercial bank focused their plan on  trying to expansion their branches even in the rural areas.Some of them are opened the branches in the village area for the development of rural area and give knowledge to rural people, it is the good massage for financial sector.

Income of commercial bank in Nepal

The commercial bank are the financial institution which act as the intermediaries between lenders and users. Here the income of the commercial is interest charged on the loan. first they collect the deposit from the depositer and then lend it to the users in the certain interest rate.n context of Nepalese commercial bank they earn interest from the loan which are charged in the business loan,housing loan,Vachel loan and personal loan. In other hand  Nepalese commercial bank earn the income from the bonus security of various company in which they have invested. Out of these income commercial bank have other various source of income.

Cash management

Cash management is the other important function of the bank. appropriate cash management result the good performance of the commercial bank. for the daily requirement and for purchase,

Liquidity management in commercial bank

Liquidity is that assets in the bank which can be convert in cash in the short period of time with low transaction cast. the liquid assets are fulfill the short term cash requirement in the commercial bank Good liquidity management result the remove the default risk In the context of  Nepalese commercial bank they are not managing the liquidity sometimes they keeps the high liquidity and sometimes in low quantity.Before some month ago there is problem of liquidity in Nepalese commercial bank but there is above liquidity in these bank.

Lending of Nepalese commercial bank

Lending refers the transformation of fund from savers to users. There are various alternative and way to lending the collected money. different kind of lending can be followed in commercial bank. the main purpose to establish is to promote and develop the business in entire country by providing the fund in reasonable interest but in practice bank are lending the fund in  various sector. The Nepalese commercial bank are lending the fund as housing, business loan,personal and Vachel loan. 

Manpower of the commercial bank in Nepal

Manpower refers the human resources working in the commercial bank.The human resources is the main resources of any organization it also very important in the commercial bank which operates the all others resources in the organization.In Nepalese commercial bank the employment recruitment method is not reasonable so there is lack of efficient manpower in the bank.The promoter and manager of the bank choose the personnel on the basis of source fore.The one of the main reason to bad performing of Nepalese commercial bank. 

Performance of commercial bank in Nepal

There are several bank in Nepal but all bank are not in good position.Due to the political instability, bad performance of the employ, lack of modern banking services,limited in certain area of the country,unfavorable financial environment,geographical difficult of Nepal,poor performance of the employee and inefficient are main reason of the poor performance of these banks. Standard chattered bank, Nabil bank,Everest bank and some of other bank are showing good performance in the Nepal and Nepal Bangladesh  bank, Sunrise bank,Himalayan bank and some of other commercial bank are showing bad performance in Nepal.

Introduction

Bank refers one of the financial intermediaries which accept the deposit from the individual and institution and provide the loan to users. In Nepalese context commercial bank are those institutions which have receive the license of "A" class financial institution.there are 32 commercial bank and their branches are operating all over the country.Among them some commercial bank are doing well and some are in poor condition.Standard chattered bank, Nabil bank Everest bank limited are in good position among the commercial bank of Neapl.