Kathmandu. Bad loans of commercial banks have increased. Bad loans have put pressure on the financial health of banks. On the other hand, non-banking assets are also piling up in the bank due to lack of loan recovery.
The average bad loan (NPL) of 20 commercial banks has increased to 4.43 percent, according to the financial statements released by the banks for the third quarter of the current fiscal year (July-April). In the previous year, the average bad loan was 3.34 percent. Compared to the previous year, the bad loans of the banks have increased by more than 1 percent.
Compared to the previous year, 18 banks’ bad loans increased and two banks decreased in the review period. Bad loans of banks have reached close to 8 percent. Himalayan Bank’s bad loans have reached 7.68 percent. Himalayan Bank’s bad loans stood at 4.96 per cent in the same period last year.
Kumari Bank’s bad loans stood at 6.98 per cent. The bank’s bad loans stood at 4.95 per cent in the same period last year.
Laxmi Sunrise Bank is at the third position in terms of high bad loans. It has increased to 5.86 per cent in the review period from 5.49 per cent in march last year.
As of Mid-April, there are eight banks with bad loans of more than 5 per cent to 8 per cent and eight banks above 3 per cent to 6 per cent.
Everest Bank has the lowest bad loans. The bank has only 0.64 per cent bad loans.
Standard Chartered Bank has the second lowest bad loan. The bank’s bad loans stood at 1.44 per cent. Everest Bank and Standard Chartered Bank have reduced bad loans in the review period compared to the previous year.
Nabil Bank and Nepal Investment Mega Bank have more than 1.5 per cent bad loans.
