Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The average non-performing loan (NPL) of Nepal’s commercial banks has crossed 5 percent, reaching 5.25 percent in the third quarter of the current fiscal year 2082/83.
According to the latest data, the average NPL of 20 commercial banks increased by 8.77 percent year-on-year from 4.83 percent in the same period last fiscal year.
During the review period, three banks reported NPL above 8 percent. Prabhu Bank recorded the highest increase, with its NPL rising by 73.67 percent to 8.84 percent from 5.09 percent a year ago. Similarly, NIC Asia Bank’s NPL increased by 53.91 percent to 8.85 percent from 5.75 percent. Himalayan Bank’s NPL also rose to 7.98 percent.
Other banks also reported increases in bad loans. Standard Chartered Bank Nepal’s NPL rose by 25.69 percent to 1.81 percent, Citizens Bank International’s by 19.43 percent to 6.82 percent, Sanima Bank’s by 16.66 percent to 3.99 percent, and Prime Commercial Bank’s by 13.09 percent to 6.39 percent.
Likewise, NMB Bank’s NPL increased by 10.73 percent to 4.95 percent, Himalayan Bank’s by 3.90 percent to 7.98 percent, and Agricultural Development Bank’s by 1.60 percent to 5.06 percent.
However, 10 banks managed to reduce their NPL during the same period. Nepal SBI Bank reported the highest decline, with its NPL dropping by 37.68 percent to 2.53 percent from 4.06 percent.
Machhapuchchhre Bank reduced its NPL by 12.63 percent to 4.01 percent, Nabil Bank by 11.89 percent to 4.37 percent, Laxmi Sunrise Bank by 9.72 percent to 5.29 percent, Nepal Bank Limited by 8.89 percent to 4.96 percent, and Siddhartha Bank by 8.16 percent to 3.71 percent.
Similarly, Everest Bank’s NPL declined by 4.68 percent to 0.61 percent, Rastriya Banijya Bank’s by 4.47 percent to 4.48 percent, Kumari Bank’s by 0.57 percent to 6.94 percent, and Global IME Bank’s by 0.20 percent to 4.97 percent.
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