The study looked at how different types of loans and financial ratios affect the performance of banks in Nepal. They used data from 22 commercial banks over a 5-year period. The results showed that having more capital in the bank leads to higher profits. However, having a lot of real estate loans, term loans, overdraft loans, deprived sector loans, and non-performing loans can lower a bank's profits. Real estate loans and overdraft loans can increase a bank's equity returns. But having too many term loans, high capital ratios, and loan-to-deposit ratios can decrease a bank's equity returns.