Browsing by Subject "Non-performing Assets"
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Item Non-Performing Assets and Profitability Analysis of Nepalese Commercial Banks(Faculty of Management, 2024) Magar, Rahul ThapaABSTRACT The level of non-performing assets (NPA) in Nepalese banking system is very alarming. It is well known fact that the bank and financial institution in Nepal have been facing the problem of swelling non-performing assets and the issue of becoming more and more unmanageable day by day. This study examines the non-performing assets and profitability analysis of Nepalese commercial banks. The main objectives of this study is to assess the factors of non-performing assets and profitability, to examine the relationship between factors of non-performing assets and profitability and to analyze the impact of non-performing assets effect on profitability. Non-performing assets (NPA), Total Loan to Total deposit Ratio (TLTDR), Capital Adequacy Ratio (CAR), Total Assets (TA) and Non-performing Loan (NPL) are taken as independent variables. Return on Assets (ROA) and Return on Equity (ROE) are taken as dependent variables. Mean, Standard Deviation, Correlation and multiple regression analysis were used to present data. The major finding of this study was the correlation between ROA and ROE is 0.135, suggesting a positive but relatively weak correlation. Notably, the correlation between TLTDR and ROE is negative correlation is statistically significant. Similarly, the correlation between CAR and TLTDR is negative relationship. Moreover, the correlation between NPL and CAR is strong positive correlation. In regression, NPA, TA and CAR are significant variable with ROA and TLTDR and NPL are insignificant with ROA. NPA, TA and CAR are significant variable with ROE and TLTDR and NPL are insignificant with ROE. Keywords: Non-performing Assets, ROA, ROE, Capital Adequacy Ratio, Total Assets and Non-performing Loan and banks and financial instructions.Item Non-performing Assets and Profitability in Commercial Banks of Nepal (With Reference to Himalayan, Everest, Nepal SBI and Nabil Bank Ltd)(Central Department of Management, 2018) Ghimire, BibekBanking sector is one of the constituents of financial system of the nation. Economy sustenance can be measured based on the sustenance of the banking sector of a particular nation and the prosperity of the nation’s economy depends on the banking system. A strong banking sector is important for flourishing economy. The failure of the banking sector in any country may have an adverse impact on other sectors. Non-performing Assets (NPAs) are one of the major concerns for banking sector in Nepal. Non-performing Assets also called NPAs is the term used in banking and finance sector. Basically this term (NPAs) is used in loan department of the bank. The assets of bank which do not perform any role in getting profit to the organization, such assets are called Non-performing Assets. NPAs reflect the performance of banks in any country. The more the NPAs the lower the performance of bank. The issue of NPAs has been discussed at length of financial system all over the world. The problem of NPAs is not only affecting the banks but also the entire economy of any country. In this research, an effort has been made to analyze the impact of NPA on profitability of Nepalese commercial banks. The study covered four commercial banks in Nepal over the period of past 10 fiscal year from 2007/08 to 2016/17. The study is diagnostic and exploratory in nature and makes use of secondary data. The study finds and concludes that the commercial banks have significantly improved their working performance in the areas of NPAs. Therefore, the results are valid for banking sector.