Kathmandu. Last fiscal year 2081 in banks due to lack of effective recovery of bad loans. Non-banking assets worth more than Rs 20 billion have been added to the list.
This has been seen from the data released by the Nepal Rastra Bank. Due to lack of credit expansion, the cost of banks is increasing, while non-banking assets are accumulating in banks due to lack of recovery of old loans.
The slowdown in the banking sector is yet to improve. As the private sector has not increased the demand for credit, there is more pressure on the banking sector.
Deposits in banks are on the rise. Nepal Rastra Bank (NRB) has been continuously drawing money from the banking system to manage more liquidity.
In the last fiscal year, the bad loans of banks and financial institutions stood at 4.62 percent. A total of Rs 55.55 billion worth of non-banking assets of banks and financial institutions have been accumulated. The previous fiscal year 2080. He had non-banking assets worth Rs 35.50 billion. In the last one year, banks and financial institutions have accumulated an additional Rs 20.42 billion in non-banking assets.
The average bad loan (NPL) of commercial banks stood at 4.44 per cent in the review year. Non-banking assets worth Rs 42.77 billion have been accumulated in commercial banks. This is an increase of Rs 12.59 billion compared to the previous year. In the previous year, commercial banks had non-banking assets worth Rs 30.17 billion.
Similarly, the average NPL of development banks was 5.03 percent in the last fiscal year. In the review year, non-banking assets worth Rs 4.68 billion have been accumulated in development banks. In the previous fiscal year, development banks had non-banking assets worth Rs 3.36 billion. In the last one year, the non-banking assets of development banks have increased by Rs 1.31 billion.
On the other hand, npl of finance companies has increased to 11.05 percent in the last financial year. In the review year, the non-banking assets of the finance company stood at Rs 3.09 billion. In the previous fiscal year, the non-banking assets stood at Rs 1.96 billion. The non-banking assets of the finance company have increased by Rs 1.12 billion.
