Portfolio Management of Commercial Banks in Nepal

Abstract

The main objective of the study is to analyze the portfolio investment management of commercial banks in Nepal over the ten years’ period. This study used investment portfolio choice (share and debenture, governmenet securities, loan and advance and size) as a proxy for financial performance. In the present study, portfolio investment management has been analyzed by analyzing the government securities, loan & advance and share & debentures. Further, this study also focused on financial position of commercial banks in Nepal. For these purpose, return on investment, return on assets and return on equity are calculated and analyzed. In order to select the sample, judgmental sampling technique is used. The study used secondary data, which were collected from the Economic Bulletins of NRB and sample banks' annual reports from 2009/10 to 2018/19. This study adopts descriptive and analytical research design. The findings from the study showed that the portfolio investment management of commercial banks is not satisfactory. The study also concluded that there is sufficient impact of investment portfolio choice on financial performance of commercial banks in Nepal.