| Title : | Non- performing assets and bank profitability of Nepalese commercial banks | | Material Type: | printed text | | Authors: | Suraj Poudel, Author | | Publication Date: | 2016 | | Pagination: | 73p. | | Size: | GRP/Thesis | | Accompanying material: | 5/B | | General note: | Including bibilography | | Languages : | English | | Descriptors: | Bank assets
Bank management
Banks
Banks and banking
Nepal
| | Keywords: | 'total assets total deposit non-performing assets total loans bank loans' | | Class number: | 332.109 | | Abstract: | NPA of banks is an important criterion to assess the financial health of banking sector, identification of the potential problem. Non-performing assets is the amount of loan that the individual commercial bank had provided and the consumer has not paid it until the time is already matured. Once the distributed loan is not returned timely by clients and becomes overdue then, it is known as Non-Performing Assets for the bank. The banking sector has been undergoing a complex, but comprehensive phase of restructuring since 1991, with a view to make it sound, efficient, and at the same time it is forging its links firmly with the real sector for promotion of savings, investment and growth. The study examines the NPA and bank profitability in Nepal. The purpose of the study is to investigate the relationship between non-performing assets and firm performance in Nepal’s banking sector. Specifically, it examines the impact of assets size, total deposit, non-performing assets and total loan on bank performance. A panel data of 16 commercial banks in Nepal was analyzed over a period of 2003-2013, using a generalized least squares technique to estimate fixed effect regression models. Three key measures of profitability (dependent variables) analysed in this study comprised of Return on Asset (ROA), Return on Equity (ROE) and Net Interest Margin (NIM).
The results for the ROA model indicate that firm size, total deposit and total loanwere positively related to bank profitability while NPAis negatively related to bank profitability. However, the beta coefficient for NPA issignificant at 1 percent level of significanceto bank profitability in case of ROA. Similarly, the results for the ROE model indicate that firm size, total loan and total depositwere positively related to bank profitability while NPAis negatively correlated to bank profitability. However, the beta coefficient for firm size wassignificant at 1 percent level of significance to bank profitability in case of ROE. The results for the NIM model indicate that firm size and total deposit were positively related to bank profitability while NPA and total loan-were negatively correlated to bank profitability. However, total deposit was positively significant and total was negatively significant to bank profitability.
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Non- performing assets and bank profitability of Nepalese commercial banks [printed text] / Suraj Poudel, Author . - 2016 . - 73p. ; GRP/Thesis + 5/B. Including bibilography Languages : English | Descriptors: | Bank assets
Bank management
Banks
Banks and banking
Nepal
| | Keywords: | 'total assets total deposit non-performing assets total loans bank loans' | | Class number: | 332.109 | | Abstract: | NPA of banks is an important criterion to assess the financial health of banking sector, identification of the potential problem. Non-performing assets is the amount of loan that the individual commercial bank had provided and the consumer has not paid it until the time is already matured. Once the distributed loan is not returned timely by clients and becomes overdue then, it is known as Non-Performing Assets for the bank. The banking sector has been undergoing a complex, but comprehensive phase of restructuring since 1991, with a view to make it sound, efficient, and at the same time it is forging its links firmly with the real sector for promotion of savings, investment and growth. The study examines the NPA and bank profitability in Nepal. The purpose of the study is to investigate the relationship between non-performing assets and firm performance in Nepal’s banking sector. Specifically, it examines the impact of assets size, total deposit, non-performing assets and total loan on bank performance. A panel data of 16 commercial banks in Nepal was analyzed over a period of 2003-2013, using a generalized least squares technique to estimate fixed effect regression models. Three key measures of profitability (dependent variables) analysed in this study comprised of Return on Asset (ROA), Return on Equity (ROE) and Net Interest Margin (NIM).
The results for the ROA model indicate that firm size, total deposit and total loanwere positively related to bank profitability while NPAis negatively related to bank profitability. However, the beta coefficient for NPA issignificant at 1 percent level of significanceto bank profitability in case of ROA. Similarly, the results for the ROE model indicate that firm size, total loan and total depositwere positively related to bank profitability while NPAis negatively correlated to bank profitability. However, the beta coefficient for firm size wassignificant at 1 percent level of significance to bank profitability in case of ROE. The results for the NIM model indicate that firm size and total deposit were positively related to bank profitability while NPA and total loan-were negatively correlated to bank profitability. However, total deposit was positively significant and total was negatively significant to bank profitability.
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