A comparative study of Liquidity and Profitability Analysis of Nepalese Commercial Bank

Abstract

ABSTRACT The objectives of research are to examine the current status of liquidity and profitability of the selected commercial bank in Nepal, to analyze the relationship between liquidity and profitability of the selected commercial bank in Nepal and to examine the impact of the liquidity toward profitability of the selected commercial bank in Nepal. The descriptive and casual comparative research design is used for the research. The secondary source of data are used and they are collected from the selected three sample bank out of twenty commercial bank in Nepal. Financial and statistical analysis are conducted. The financial analysis is done through different ratio and statistical analysis from the descriptive statistics, correlation and multiple regression analysis are used to analysis the data. The finding of the research is that Nepal bank limited shows that the current status of the research variables has very low level of fluctuation because the standard deviation is very low. The Nabil bank limited shows that the current status of the research variables has fluctuation because the standard deviation is high and the Himalayan bank limited shows that the current status of the research variables has fluctuation because the standard deviation is high. The relationship between cash deposit ratio and return on equity is significant in the NBL. The assets quality, credit deposit and leverage has not significant to the return on equity in the NBL. The relationship between credit deposit ratio and leverage and return on equity is significant in the NABIL. The assets quality and cash deposit has not significant to the return on equity in the NABIL. The relationship of Assets Quality Ratio, Credit Deposit Ratio, Cash Deposit Ratio and Leverage to the return on equity is not significant in the HBL. The impact of cash deposit ratio to the return on equity is significant in the NBL. The assets quality, credit deposit and leverage has not significant impact to the return on equity in the NBL. The impact credit deposit ratio to the return on equity is significant in the NABIL. The impact of assets quality, cash deposit and leverage has not significant to the return on equity in the NABIL. The impact of Assets Quality Ratio, Credit Deposit Ratio, Cash Deposit Ratio and Leverage has not significant impact to the return on equity in the HBL. Keywords: Assets Quality Ratio, Credit Deposit Ratio, Cash Deposit Ratio and Leverage and Profitability