Indra Bahadur BoharaDil Kumari Gurung2025-03-252025-03-252024https://hdl.handle.net/20.500.14540/24662This study examines the impact of credit management on the profitability of Nepalese development banks. Secondary data was collected from these banks over a ten-year period (2012/13–2021/22). The data was analyzed using correlation and multiple regression analysis. The study finds that Nepalese development banks exhibit low credit risk, as indicated by a low non-performing loan ratio, and they maintain a strong profitability position. The correlation test indicates that the cash reserve ratio has an insignificant positive relationship with profitability. The credit-to-deposit ratio shows an insignificant negative relationship with Return on Assets (ROA) and an insignificant positive association with Return on Equity (ROE). In contrast, non-performing loans and bank size have a significant negative relationship with profitability. Additionally, the leverage ratio has a significant negative relationship with ROA but an insignificant positive relationship with ROE. The regression analysis confirms that both the cash reserve ratio and the credit-to-deposit ratio have an insignificant positive effect on profitability (ROA and ROE). However, non-performing loan ratio and bank size significantly negatively impact profitability. Lastly, the leverage ratio has an insignificant negative impact on ROA but a significant positive impact on ROE. Thus, the study concludes that credit risk has a significant negative impact on the profitability of Nepalese development banks.en-USThesis