FACTOR AFFECTING NON-PERFORMING ASSETS IN NEPALESE COMMERCIAL BANKS

Abstract

The objective of the research are to assess the current status of non-performing loans and factor affecting non-performing assets in Nepalese commercial banks, to analyze the relationship of factors affecting non-performing loan and non-performing loan in Nepalese commercial banks and examine the impact of factors affecting non-performing loan and non-performing loan in Nepalese commercial banks. The literature review from the google scholar. The descriptive and casual comparative research design has been used for doing this research. Out of 20 commercial bank, 3 banks are taken under studies. The secondary data are used for this study. Financial and statistical analysis conducted for achievement of the objectives. It is found that deviation mean minimum and maximum and the result of the given tables shows the variables namely; non-performing assets ratio, return on assets, liquidity ratio, cost income ratio, capital adequacy ratio and inflations rate are fluctuating in nature. The relationship of return on assets and liquidity ratio to the non-performing assets ratio is not significant. The relationship of cost income ratio, capital adequacy ratio and inflation rate is significant to the non-performing assets ratio. The impact of return on assets and liquidity ratio to the non-performing assets ratio is not significant. The impact of cost income ratio, capital adequacy ratio and inflation rate is significant to the non-performing assets ratio.