A COMPARATIVE STUDY OF LOAN MANAGEMENT ON NEPALESE COMMERCIAL BANKS
| dc.contributor.advisor | Dr. Binita Manandhar | |
| dc.contributor.author | Manisha Gyawali | |
| dc.date.accessioned | 2025-01-28T09:13:31Z | |
| dc.date.available | 2025-01-28T09:13:31Z | |
| dc.date.issued | 2024 | |
| dc.description.abstract | This study provides an analysis of loan management and profitability at Nepal Investment Mega Bank Ltd. (NIMBL), Kumari Bank Ltd. (KBL), and Agricultural Development Bank Ltd. (ADBL), identifying errors in their credit risk management practices and suggesting corrective measures. Loan management, which encompasses both on-balance sheet and offbalance sheet activities, aims to maximize the bank's risk-adjusted rate of return while keeping credit risk within acceptable limits. This study examines the relationship between various financial variables, including the credit deposit ratio (CDR), non-performing loan ratio (NPLR), cash reserve ratio (CRR), capital adequacy ratio (CAR), bank size (SIZE), return on assets (ROA), and return on equity (ROE). Using both descriptive and causal research designs, data from annual reports and official websites for the period 2011/12 to 2020/21 were analyzed through financial ratios, descriptive statistics, correlation analysis, t-statistics, and multiple regression analysis. The findings revealed that ADBL demonstrated the most consistent asset growth and maintained a CDR below the 80% threshold. NIMBL also kept its CDR under 80%. ADBL had the highest average NPLR at 4.61%, while KBL had the lowest at 1.90%, indicating superior loan management by KBL. All three banks met the capital requirements set by NRB. ADBL exhibited lower liquidity risk and earned more from asset utilization, whereas NIMBL's investors saw higher returns from equity investments. The study concludes that credit flow was consistent across the banks during the study period. While early years showed higher NPL ratios, adequate provisions mitigated credit risk. Profitability, measured by ROA and ROE, remained stable. The analysis found positive relationships between ROA and variables CDR, NPLR, CRR, CAR, and SIZE, with CRR and CAR being statistically significant. Conversely, CDR, NPLR, CAR, and SIZE had negative relationships with ROE, with CRR showing a positive relationship. Keywords: Credit Deposit Ratio, Non-Performing Loan Ratio, Cash Reserve Ratio, Capital Adequacy Ratio, Bank Size | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14540/23868 | |
| dc.language.iso | en_US | |
| dc.publisher | Shanker Dev Campus | |
| dc.title | A COMPARATIVE STUDY OF LOAN MANAGEMENT ON NEPALESE COMMERCIAL BANKS | |
| dc.type | Thesis | |
| local.academic.level | Masters | |
| local.affiliatedinstitute.title | Shanker Dev Campus | |
| local.institute.title | Faculty of Management |