Investment portfolio of Nabil Bank Limited in Nepal

Abstract

An investment portfolio represents the structured allocation of financial resources into different assets with the aim of generating income, maintaining liquidity, and ensuring capital safety. For commercial banks, effective portfolio management is essential to balance profitability with risk and regulatory requirements. This study examines the investment portfolio of Nabil Bank Limited, one of the leading commercial banks in Nepal, over a five-year period from 2020 to 2024. The study focuses on analyzing the composition and performance of the bank’s investment portfolio, particularly loans and advances, deposits, total assets, and equity, along with key profitability indicators such as Return on Assets (ROA) and Return on Equity (ROE). The research is based entirely on secondary data collected from published annual reports of Nabil Bank Limited and relevant publications of Nepal Rastra Bank. Descriptive and financial ratio analysis tools are used to evaluate asset allocation efficiency, liquidity management, and profitability trends. The findings reveal that Nabil Bank Limited has experienced consistent growth in lending, deposits, and total assets, indicating effective resource mobilization and credit expansion. Although profitability ratios showed some moderation in recent years due to rapid asset and equity growth, the bank maintained a stable and well-diversified investment portfolio. Overall, the study concludes that Nabil Bank Limited follows a prudent and balanced investment strategy that supports sustainable growth, effective risk management, and long-term financial stability within the Nepalese banking sector.