Non-performing loans in Nepal’s banking sector least in South Asia

KATHMANDU: The non-performing loans in the banking sector in Nepal is the lowest among South Asian countries, as per a study carried by the Confederation of Banks and Financial Institutions Nepal (CBIFIN).

As per CBIFIN’s report, the share of non-performing loans of commercial banks, development banks, and finance companies in Nepal was 1.7%, which is less compared to other South Asian countries.

Pakistan has the highest non-performing loans at 9.2 percent while Maldives has 8.3 percent non-performing loans and India has 7.9 percent non-performing loans. Similarly, non-performing loans (NPLs) stood at 7.7 percent in Bangladesh and 4.9 percent in Sri Lanka.

The share of non-performing loans in the Nepali banking sector had reached about 30 percent in 2062-63 BS. Based on that, Gharti understands that Nepali banks have been able to manage loans well.