Dr. Pitri Raj AdhikariBinita Limbu Kangba2025-04-212025-04-212024https://hdl.handle.net/20.500.14540/24816This dissertation examines the impact of relationship between loan variables and profitability in Nepalese commercial banks, where Everest Bank Limited, Himalayan Bank Limited, Global IME Bank Limited, NABIL Bank Limited and Rastriya Banijya Bank have been chosen as the sample for the study. The main objectives of this study is to examine the relationship between loan variables and profitability of sample banks. This study has covered ten years data from 2013/14 to 2022/23 of sample banks. Descriptive and casual comparative research designs have been employed to make the study more genuine and credible. Five sets of hypothesis has been developed to address the research question. Study is mainly based on secondary data, which are obtained from the balance sheet and profit and loss account presented in annual reports of sample banks, and other relevant data have been obtained from NRB and IMF reports of the relevant fiscal years. Variables identified as independent are non-performing loan ratio, capital adequacy ratio, GDP growth rate, size of firm and inflation rate, whereas variables identified as dependent are return on assets and return on equity. The study has used different financial ratios and statistical tools namely mean, standard deviation, correlation analysis, regression analysis for the study of the sample banks. It has been found from Karl Pearson’s correlation analysis that ROA is insignificant positively associated with GDP growth rate; insignificant negatively associated with non-performing loan ratio, capital adequacy ratio and inflation rate; and significant negatively associated with size of bank. Further, ROE is insignificant positively associated with non-performing loan ratio, GDP growth rate and inflation rate; insignificant negatively associated with capital adequacy ratio; and significant negatively associated with size of bank. The results of regression indicated that ROA is insignificant positively associated with capital adequacy ratio, GDP growth rate and inflation rate; insignificant negatively associated with non-performing loan ratio; and significant negatively associated with size of bank. Further, ROE is insignificant positively associated with non-performing loan ratio, capital adequacy ratio, GDP growth rate and inflation rate; and significant negatively associated with size of bank.en-USThesis