An Assessment of Financial Performance of Banks: A Case of the Nainital Bank Ltd. | Original Article

ABSTRACT:

Banks play an important role in the economic development of every nation. They have control over a large part of the supply of money in circulation. The banking sector is the lifeline of any modern economy. It is one of the important financial pillars of the financial sector, which plays a vital role in the functioning of an economy. It is very important for economic development of a country that it’s financing requirements of trade industry and agriculture are met with higher degree of commitment and responsibility. Thus, the development of a country is integrally linked with the development of banking. Financial performance of banks is generally assessed through calculating the ratios, and profitability ratios play an important role in assessing financial performance. This study aims to assess the financial performance for last five years of the Nainital Bank Ltd., a subsidiary of bank of Bdodra , headquartered at Nainital, Uttarakhand. Altman’s Z score model Camel’s rating methods has been used for calculating the appropriate results.