Comparative Study of NPA’s of Private and Public Sectors Banks in Nepal

Abstract

Non-Performing assets have become a significant issue for the banking and financial sector in Nepal. The asset quality of the bank has become crucial for the development of the banking sector. The motive of the study is to compare the NPA of public and private banks of Nepal as well as to study the relationship between NPA and the profitability of the selected banks. This study is based on secondary data, which are collected from annual reports and official websites of the banks. The study covers the period of 2016 to now in which three government-owned banks and three private banks are taken for the sample of the study. It is found that the NPA of private sector banks is relatively low than the public banks. In recent times the NPA of private sector banks is raising due to several factors like Covid-19 and an economic crisis but the NPA of public banks seems fine and not much affected.