Financial and investment protfolio of commercial bank in Nepal

Abstract

This study analyzes the Investments and Financial Performance of commercial banks in Nepal. However, investment decisions are risky and very uncertain on whether the costs incurred to invest have recouped and profits gained within the specified time period fiscal year 2016/17 to 2021/22. To achive research objective, descriptive and causal-comparative research design have used. This research is based on secondary data. The findings of the correlation there was a positive correlation between ROA and Consumer price inflection ratio. There was a negative correlation between ROA and Net Profit and Investment in government securities, Investment in government bond, Investment in treasury bills, Non-performing loan ratio and Consumer price inflections ratio which was statistically insignificant at the 0.05 level (2-tailed). There was a negative correlation between Net Profit and Consumer price inflection rate. The Net Profit and Investment in government securities, Investment in government bond, Investment in treasury bills, Non-performing loan ratio which was statistically significant at the 0.05 level. The R² value has 0.208. It means that independent variable explain by dependent variable (ROA) is 20.8%. The ANOVA table indicates that the fitted model or R square is insignificant (F (5, 45) = 1.264, p = 0.312). It means that the model is not fit. Similarly, the R² value has 0.342. It means that the independent variable explain by a dependent variable (ROE) is 34.20%. The ANOVA table indicates that the fitted model or R square is significant (F (5, 24) = 2.497, p = 0.049). It means that the model is fit. There is a significant relationship between Net Profit and Investment in government securities, Investment in government bond, Investment in treasury bills, Consumer price inflections rate with a 99% confidence interval.