Banks are general means of institutions that deal with money. They provide\nfinancial resources for the development of the nation. They collect deposits\nfrom the people and lend these resources to people who demand investment.\nThis study aims to evaluate and compare cash flows of selected two commercial\nbanks. It helps to find out sources and uses of cash to analyze cash flow\nperformance of Himalayan Bank and Global IME Bank limited. Cash flow\nstatement is a statement which states the cash inflows and outflows of cash. A\nstatement of cash flow reports cash receipts and payments classified according\nto the major activities: operating, investing and financing during the period.\nIn this paper, a comparative study has been undertaken between two\nbanks Global IME Bank limited and Himalayan Bank Limited. This study has\nbeen carried out with analytical research design to analyze the cash flow of\ntwo banks. Secondary data were used in this study. The cash flow from operating,\ninvesting and financing activities is fluctuating trend. It is also found\nthat operating cash flow is positive and financing cash flow is negative in\nmost of the years. In comparison, the cash flow of HBL has more consistency\nthan GIBL. Both banks have positive Net cash flow except few years. Because\nof the conflict and political instability, the banking sector has also been\naffected. In banking industry, it seems that operating expenses are increasing\nyear by year. Therefore, commercial banks should pay good attention to the\nminimization of operating expenses as possible.
Loading....