Loan Management of Commercial Banks (A Comparative Study of Everest and Nepal Investment Bank Limited

Abstract

Bank loan management is crucial and it is instrumental in ensuring the success or failure of any credit institution. The objective of this study was to determine the relation between loan management and financial performance with a focus of deposit, total assets and investment. This study made use of secondary data obtained from fact books, annual report and other journal and articles. The relevant data obtained were subjected to statistical analysis using IBS SPSS 21, Pearson co-efficient of correlation and multiple regression analysis were the statistical tools used for this study, the result of this study revealed that there is a positive and statistically significant relationship between loan management with the banks deposit, total assets and investment. The study sought to determine the effect of loan management on the financial performance of commercial banks in Nepal. The study descriptive and explanatory research design have followed. The target population of study consisted of28 commercial bank and Everest Bank ltd and Nepal Investment bank ltd has been selected as sample for the study. Similarly, financial statement of these bank for 8 years have been taken as for the same purpose. convenient sampling technique was used in sampling. This study is based on secondary data This study therefore provides an insight into this topic and helps promote further research into same. In general, this research has a practical value to it as it will disseminate the findings to the survey participants. Subsequently, these commercial banks should increase their deposit and to invested in different sector including also rural area.