This study aims to identify the effect of macroeconomic variables, industry-specific variables, and bank-specific variables on Nepalese commercial banks’ lending. The data were collected from 15 commercial banks for a period of 10 years from year 2011 to year 2020, using convenience sampling techniques. Here banks’ lending is measured in terms of total loan and advances of bank. The study uses GDP, inflation rate, and foreign exchange rates as macroeconomic variables; CRR, CAR, and lending interest rate as industry-specific variables; total deposit, profitability, liquidity, and bank size as bank-specific variables. The result from random effect panel regression analysis shows that bank size, total deposit, return on assets, and exchange rate have significant positive effect on loans and advances. The rate of inflation and the liquidity ratio have a significant negative impact on loans and advances. GDP, CRR, and CAR have a negative but insignificant impact on loans and advances, which is unexpected. Also, the lending interest rate has a positive and insignificant impact on loans and advances. The study suggests that commercial banks should focus on bank-specific and macroeconomic factors and mobilize them in a way that will enhance their lending performance and should formulate critical, realistic, and comprehensive strategic and financial plans.