Investment Practices of Nepalese Commercial Banks (With Reference to Standard Chartered Bank Ltd and Nepal SBI Bank Ltd.)

Abstract

This study examined the study on investment practise of Nepalese commercial banks in Nepal. The main objectives of the study were to examine the investment pattern and relationship between profitability and investment of selected banks. The descriptive research designs have been adopted for the study. The data was collected from the secondary sources. Statistical population consists of all 27 commercial banks currently operating in Nepal. To collect the data two banks namely SCB and SBI are taken as sample bank by using convenience sampling method. For this research annual report of sample banks are used from the fiscal year 2015/16 to 2018/19. Various statistical and financial tools such as mean, standard deviation, coefficient of variation, correlation and ratios were used to analyse the data. Result of the research indicates that better investment Pattern of SBI is sound and overall profitability of SBI is greater than SCB. Moreover the finding of this study shows SBI is more able to mobilize its total funds as compare to SCB. Likewise, research indicates that there is positive relationship between profitably and investment. This study concludes that the investment practices of Nepalese commercial banks are satisfied to some extent. As a result banks are generating the profit to sustain their business. Therefore the sound investment policy and timely revised investment portfolio will be the good implication for Nepalese commercial banks to minimize the risk and maximize the profitability