CREDIT MANAGEMENT PRACTICES AND PROFITABILITY OF NEPALESE COMMERCIAL BANK

Abstract

The objectives of research are to explore the factor of credit management practice to affect the profitability of commercial bank in Nepal, to examine the relationship between Credit Appraisal, Credit Risk Control, Collection Policy, lending policy to the Profitability of commercial bank in Nepal and to examine the impact of Credit Appraisal, Credit Risk Control, Collection Policy, lending policy to the Profitability of commercial bank in Nepal. Descriptive and casual comparative research design has been employed. The research is conducted based on the primary data collected from the respondent of the research. The convenience sampling tools is used for selection of the respondent. The research has questionnaire for data collection. Data are collected and analysis made through descriptive statistics, correlation and regression analysis. SPSS and excel are the tools for analysis of the research. The finding of the research is that the credit management is found through article and journal reviews and they are credit management practice are Credit Appraisal, Credit Risk Control, Collection Policy and Lending Policy. The relationship between the independent variables Credit Appraisal, Credit Risk Control, Collection Policy and Lending Policy with dependent variables profitability is perfectly positive and significant. The impact of each independent variables Credit Appraisal, Credit Risk Control, Collection Policy and Lending Policy to the dependent variables profitability is significant. Keywords: Credit Appraisal, Credit Risk Control, Collection Policy, lending policy and Profitability