LENDING PRACTICES OF DEVELOPMENT BANK IN NEPAL

Abstract

This thesis investigates the lending behavior of development banks in Nepal, focusing on Garima Bikas Bank, Muktinath Bikas Bank, and Shine Resunga Development Bank from fiscal year 2070 to 2080. The study aims to identify and analyze the key factors influencing lending activities, including deposits, investments, borrowings, and net incomes. Employing both descriptive and inferential statistics, the research utilizes data from annual financial reports and secondary sources to explore patterns and correlations among the variables. The findings indicate that deposits have a significant positive impact on lending, suggesting that higher deposit volumes enhance the banks' capacity to extend credit. Investments, on the other hand, show a slight negative effect on lending, highlighting the potential trade-off between resource allocation for investments and loan disbursements. Net income positively correlates with lending activities, underscoring the role of profitability in expanding credit services. Borrowings, however, exhibit an insignificant influence on lending, except during specific periods such as the COVID-19 pandemic.