CREDIT RISK MANAGEMENT AND PROFITABILITY OF JOINT VENTURE COMMERCIAL BANKS IN NEPAL
Binay Shrestha (Ph.D. Scholar), LNMU, Darbhanga
Birgunj Public College
Tribhuvan University
ABSTRACT
Credit risk management is one of the vital aspects of the financial institutions regardless of their nature. For a more comprehensive analysis of Nepalese banking sector, investment and commercial banks both were chosen for assessing the relationship between credit risk management and profitability. Descriptive and casual research design of study helped in assessing the casual effect relationship between the research variables. The regression model was used for gathering quantitative findings while structured interview from bank managers was selected for gathering qualitative data. The findings of the regression model in the current study confirmed that there is no consequence of credit risk on profitability of joint venture banks of Nepal.
The study is focused on credit risk management and profitability of joint venture commercial bank of Nepal with reference of NABIL, NIBL, SCBl, EBL, NSBI and HBL, it is able to find out the comparative study of joint venture banks on the basis of Credit to deposit ratio, non-performing credit to total credit ratio and ROA. All the data used in this study are secondary in nature from annual report of joint venture commercial banks. In this study six joint venture banks as sample. This study is based on the five years performance of the bank from 2012 to 2016.
Key Words: Credit, Deposit, Non-performing credit, Profitability, and ROA
