Portfolio Management Analysis of Development Banks in Nepal

Abstract

Portfolio management and its performance on profit is major objective of development banks in Nepal. The research focuses towards identifying contribution of Portfolio management through attracting investors on healthy business area. Efficiency of investment by Nepalese development banks is measured in this study. Descriptive and analytical research design is used for carrying out the results. Acceptance of deposits is the primary function of banks. Specific objective of this study are to evaluate the investment portfolio,evaluate the financial performance and to assess correlation between portfolio management and itsperformance on profitof KBBL,JBBL, GBBL and MBBL in Nepal. The whole research is based on secondary data and descriptive and analytical research designs have been used. Data were processed by use of different financial and statistical tools. Different banking ratios are calculated and draw the conclusion to find out the effectiveness in portfolio management. Different statistical tools like mean, SD, correlation coefficient and regression analysis also have been used to meet the specific objectives of the research study. The statistical software SPSS was used as a device to accommodate analysis. The different financial ratio shows the satisfactory results to all the banks. The study recommends to all the banks to develop other strategies towards mobilize their deposits in different sectors as they are indispensable tools in order to increase the profitability of the banks.