Impact of non-performing assets on the financial performance of the Nepalese Commercial Banks

Abstract

The bank's profitability situation is quite satisfactory. Nonetheless, the risk element of KBL, EBL and RBB and are profoundly than KBL and EBL, which demonstrates the monetary standards of high gamble to exceptional yield. What's more, this should be worked on further with the end goal of legitimate use of the resources of the organization. At long last, the general investigation of test banks RBB and banks have more consistency, positive slanted and Leptokurtic. The presented descriptive statistics indicate that the maximum RBB and weighted average interest spread occurred. From a viewpoint of the coefficient of variation, RBB and are observed to be more uniform than KBL and EBL. RBB and EBL had more random profitability ratios than KBL and EBL. As a result, the company's credit rating suffers and it is unable to attract individuals for productive fund mobilization. This study came to the conclusion that RBB and banks have more earnings than KBL and EBL and fewer non-performing assets. The study reveals that the sample banks' profitability results are superior. The RBB and EBL have had the option to keep up with standard of markers situating than KBL. The KBL and EBL's Non presentation credit higher than RBB, KBL and EBL have been expected to capable keep up with that proportions to develop its piece of the pie to make solid edges in market, adding to areas of strength for the and productivity position of the bank. Likewise, Relapse point of perspectives, The profit from resources and Non performing credit of test banks seen positive patterns to one another while, return on resources and Weighted normal loan cost spread of test banks seen negative patterns. In comparison to RBB and EBL, the KBL and EBL ought to work toward increasing their profitability ratio and earnings per share for future business growth. All example banks needs to do whatever it takes to further develop the non-performing proportion. Both banks' earnings per share have increased significantly, and it is recommended that this trend continue in the coming years. EBL and KBL couldn't keep up with the regular norm of proportion (twice) than RBB and EBL.

Keywords: Non-performing assets, performing asset, financial performance, profitability