Collection Title: | SIU IS | Title : | Impact of Liquidity on Profitability in Nepalese Commercial Banks: Comparative Study of Laxmi Bank Ltd and Kumari Bank Ltd | Material Type: | printed text | Authors: | Nabita Shrestha, Author ; Wilaiporn Laohakosol, Associated Name ; Arhan Sthapit, Associated Name | Publisher: | Bangkok: Shinawatra University | Publication Date: | 2017 | Pagination: | vi, 67 p. | Layout: | ill, Tables | Size: | 30 cm. | Price: | 500.00 | General note: | SIU IS: SOM-MBA-2017-N23
IS [MS. [MBA]] -- Shinawatra University, 2017 | Languages : | English (eng) | Descriptors: | [LCSH]Banks and banking -- Nepal
| Abstract: | The present study aims to reveal the relationship between liquidity and profitability of Laxmi Bank Ltd and Kumari Bank Ltd. It tries to examine the impact of liquidity on profitability by comparing two private banks established after 2000 A.D. It has taken two private banks for the period between 2008/09 and 2014/15 inorder to address the objectives. Considering liquidity can increase the profitability , the study has examined the liquidity of Laxmi Bank Ltd and Kumari Bank Ltd as well as profitability position, using various financial tools and indicators. The overall trend of liquidity ratios are not smoothing in both Laxmi Bank and Kumari Bank. But variation in liquidity ratios as well as profitability in Kumari Bank is lower than
Laxmi Bank. Fluctuating trend of the liquidity ratios make difficulty in the increase trend of profitability of the banks. So, according to liquidity and profitability, Kumari Bank seems to be more efficient than Laxmi Bank.
There is a significant positive effect of NRBTDR and CABTDR on
profitability in both Laxmi Bank Ltd and Kumari Bank Ltd. CHTDR, LFTCLR and LFTDR are negatively correlated with the ROA in case of Kumari Bank. NRBTDR, CHTDR and CABTDR are positively correlated whereas LFTCLR and LFTDR are negatively correlated with the ROA in case of Laxmi Bank. The positive correlation indicates that the increase in the liquidity ratios lead to increase in profitability and
vice-versa whereas negative correlation indicates that increase in ratios lead to decrease in profitability and vice- versa.
The overall average ROA of Laxmi Bank and Kumari Bank are similar but coefficient of variation of Kumari Bank Ltd is lower than that of Laxmi Bank Ltd. This means that profitability position is more consistent in Kumari Bank. So, Kumari Bank is better in profitability position in terms of low variation. Therefore, the liquidity performance of Kumari Bank Ltd. is better than Laxmi Bank Ltd. | Curricular : | BBA/MBA | Record link: | http://libsearch.siu.ac.th/siu/opac_css/index.php?lvl=notice_display&id=27407 |
SIU IS. Impact of Liquidity on Profitability in Nepalese Commercial Banks: Comparative Study of Laxmi Bank Ltd and Kumari Bank Ltd [printed text] / Nabita Shrestha, Author ; Wilaiporn Laohakosol, Associated Name ; Arhan Sthapit, Associated Name . - [S.l.] : Bangkok: Shinawatra University, 2017 . - vi, 67 p. : ill, Tables ; 30 cm. 500.00 SIU IS: SOM-MBA-2017-N23
IS [MS. [MBA]] -- Shinawatra University, 2017 Languages : English ( eng) Descriptors: | [LCSH]Banks and banking -- Nepal
| Abstract: | The present study aims to reveal the relationship between liquidity and profitability of Laxmi Bank Ltd and Kumari Bank Ltd. It tries to examine the impact of liquidity on profitability by comparing two private banks established after 2000 A.D. It has taken two private banks for the period between 2008/09 and 2014/15 inorder to address the objectives. Considering liquidity can increase the profitability , the study has examined the liquidity of Laxmi Bank Ltd and Kumari Bank Ltd as well as profitability position, using various financial tools and indicators. The overall trend of liquidity ratios are not smoothing in both Laxmi Bank and Kumari Bank. But variation in liquidity ratios as well as profitability in Kumari Bank is lower than
Laxmi Bank. Fluctuating trend of the liquidity ratios make difficulty in the increase trend of profitability of the banks. So, according to liquidity and profitability, Kumari Bank seems to be more efficient than Laxmi Bank.
There is a significant positive effect of NRBTDR and CABTDR on
profitability in both Laxmi Bank Ltd and Kumari Bank Ltd. CHTDR, LFTCLR and LFTDR are negatively correlated with the ROA in case of Kumari Bank. NRBTDR, CHTDR and CABTDR are positively correlated whereas LFTCLR and LFTDR are negatively correlated with the ROA in case of Laxmi Bank. The positive correlation indicates that the increase in the liquidity ratios lead to increase in profitability and
vice-versa whereas negative correlation indicates that increase in ratios lead to decrease in profitability and vice- versa.
The overall average ROA of Laxmi Bank and Kumari Bank are similar but coefficient of variation of Kumari Bank Ltd is lower than that of Laxmi Bank Ltd. This means that profitability position is more consistent in Kumari Bank. So, Kumari Bank is better in profitability position in terms of low variation. Therefore, the liquidity performance of Kumari Bank Ltd. is better than Laxmi Bank Ltd. | Curricular : | BBA/MBA | Record link: | http://libsearch.siu.ac.th/siu/opac_css/index.php?lvl=notice_display&id=27407 |
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