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Mahesh Abale, Devyani Ingale


Non-performing Asset (NPA) has emerged since over a decade as an alarming threat to the banking industry in country, sending distressing signals on the sustainability and en-durability of the affected banks. A high level of NPAs suggests high probability of a large number of credit defaults that affect the profitability and net-worth of banks and also erodes the value of the asset. The problem of NPAs is not only affecting the banks but also the whole economy. This paper deals with understanding the concept of NPAs, its magnitude and major causes for an account becoming non-performing and also strategies for reducing NPAs. This research attempts to analyze the level of Nonperforming assets in context of Nabil Bank Limited. Researcher examines the trend of nonperforming assets level of Nabil Bank Limited and other banking business of Nepal.

Several prudential and provisioning norms have been introduced, and these are pressurizing banks to improve efficiency and trim down NPAs to improve the financial health in the banking system. In the background of these developments, this study strives to examine the state of affair of the Non Performing Assets (NPAs) of the NABIL Bank Limited. The study is based on the secondary data retrieved from Report on Trend and Progress of Banking in Nepal. The scope of the study is limited to the analysis of NPAs of the Nabil Bank Limited, Nepal for the period seven (6) years i.e. from 2006-2011. The study based on financial data obtained from the Bank in the form of the annual reports for 6 financial years under consideration (2005-06 to 2010-11).


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