KATHMANDU: Non-performing loans (NPLs) in Nepal’s banking sector have been increasing in recent months, according to data released by Nepal Rastra Bank for the third quarter of the current fiscal year 2082/83.
The data shows that the overall NPL ratio of commercial banks has reached 5.60 percent.
Among 20 commercial banks, NIC Asia Bank recorded the highest NPL ratio at 8.85 percent. The bank has set aside Rs 22.32 billion as loan loss provisions.
However, in terms of total loan loss provisioning, Nepal Investment Mega Bank has allocated the highest amount, Rs 28.45 billion, despite its NPL ratio standing at 8.41 percent.
Kumari Bank follows with Rs 28.20 billion in loan loss provisions, with an NPL ratio of 6.94 percent.
Similarly, Global IME Bank reported an NPL ratio of 4.97 percent and has set aside Rs 27.61 billion for potential loan losses. Himalayan Bank recorded an NPL ratio of 7.68 percent with Rs 25.18 billion in provisions, while Prabhu Bank posted an NPL ratio of 8.84 percent and has made provisions of Rs 22.84 billion.
Other banks reported the following NPL ratios: Nabil Bank at 4.37 percent, Laxmi Sunrise Bank at 5.29 percent, Rastriya Banijya Bank at 4.48 percent, Prime Commercial Bank at 6.39 percent, Nepal Bank at 4.96 percent, NMB Bank at 4.95 percent, Agricultural Development Bank at 5.06 percent, Citizens Bank at 6.82 percent, Siddhartha Bank at 3.71 percent, Sanima Bank at 3.99 percent, Machhapuchchhre Bank at 4.01 percent, Nepal SBI Bank at 2.53 percent, Everest Bank at 0.61 percent, and Standard Chartered Bank Nepal at 1.81 percent.
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