Capital adequacy gives insights of overall
financial position of the bank (Shrivastava.et al). Bank
capital is a focal issue of financial soundness and safety
of a bank. In fact the ultimate strength of a bank lies in
its capital funds given its significance as a tool for
meeting liabilities in a financial crisis and as a cushion
for absorbing losses(Rose). From the table we see that
capital adequacy ratio above 10% i.e. Prime Bank ltd
maintained adequate capital in study period. In addition