CREDIT MANAGEMENT AND BANK PERFORMANCE – AN EVIDENCE FROM NEPAL

collected from 36 branches selected at random out of 159 for a sample of 81 employees that are either relationship manager or branch.Descriptive and inferential statistics are used to draw results.Findings indicate client appraisal, credit risk management and recovery policies of MBL influence its performance, though central bank of Nepal's guidelines are followed, credit risk is not mitigated.Employees feel that client appraisal needs to be centralized and common for all the branches.Employees' qualification, training and experience have no influence on client selection and credit recovery decisions.Current research helps MBL, the central bank of Nepal and policy makers in formulating guidelines in client appraisal, credit risk mitigation for better recovery which improves bank performance.