Impact of credit management on net profit of Laxmi Bank Limited, Prime Commercial Bank Limited and Siddhartha Bank Limited

Abstract

The basis of business is borrowing from individuals, firms and occasionally government i.e. receiving deposit from them. Bank is an institution, which deals with the transaction of money. They perform several financial monetary and economic activities that are essential to accelerate the rate of economic growth of the country. At present, 20 commercial banks have been operating in Nepal. After the adaptation of liberal policy by the government in 1990 number of banks and financial institutions were massively increased. They have been rendering high quality banking services to the people. There is cut throat competition between banks and financial intuitions. This research has been undertaken to evaluate the credit management of commercial banks i.e. particularly three banks Laxmi Bank Limited, Siddhartha Bank Limited and Prime Commercial Bank Limited are under study and ten year financial statements of respective banks have been used for the study. The study has been divided into five chapters which include introduction, review of literature, research methodology, data presentation and analysis and summary, conclusion and recommendation. This study mainly based in secondary data, which include published annual report and other publication of banks. Other related information was gathered from the concerned banks, Nepal Rasta Bank, Nepal Stock Exchange, Securities Board of Nepal and other different websites. The data have been analyzed by using financial and statistical tools like ratio analysis and correlation coefficient analysis etc