Determinants of Investment of Nepalese Commercial Banks

Investment, Deposit, Size and Profit

Authors

  • Bishnu Prasad Bhattarai Academic Director/ Business Unit Head, Excel Business College, Pokhara University, Kathmandu, Nepal Faculty Member, Patan Multiple Campus, Tribhuvan University, Kathmandu, Nepal
July 5, 2019

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The purpose of the study to examine the factors that affects the investment of Nepalese commercial banks. The study is based on the secondary data which were gathered for 10 commercial banks in Nepal for the period 20012/13 to 2016/17, leading to the total of 50 observations. The secondary data have been obtained from concerned banks annual reports. The descriptive, correlational and casual comparative research design has been employed. In this study, ten commercial banks are taken as sample out of total population of 28. The dependent variable used in this study is investment and independent variables used are Deposits, Size of the firm and Net Profit. The regression model reveals that there is positive relationship of Investment with Deposit and is statistically significant. Size of the firm have negative relation with the dependent variable and indicates statistically insignificant. In the same way Profitability has the positive relation with the investment but it is also statistically insignificant. It states that when the Profit of Firm increase then the investment will also rise. Deposit has the positive relationship with the investment which indicates that as deposits increases the investment amount get increases and is statistically significant.