Kathmandu. Customers of NIC Asia Bank have started panicking despite the continuous weak financial statements in recent years. They have started expressing concern that the deposits kept in the bank will be drowned.
From social media to banking experts, what will we do if NIC Asia becomes weak? That’s the question they’re beginning to ask. In the last few years, customers have been fed up with the failure of NIC Asia Bank in banking practice. Like the Karnali Development Bank, which was taken over by the Rastra Bank a few months ago, they are worried that the same situation may arise in this bank.
Nic Asia Bank’s financial statements confirm that it is weakening. Last fiscal year 2081. Nic Asia Bank’s profit has fallen sharply in 1982. The bank’s net profit declined by 76.97 percent to Rs 161.5 million. The previous fiscal year 2080. The bank had posted a net profit of Rs 701.4 million in 2017-19. Most of the banks’ profits have increased, but the bank’s profit has fallen drastically.
NIC Asia Bank has reached the deal of crisis as it has not been able to recover the loan given in the past. Most of the banks have reduced the provision for loan losses, but the bank has increased. Roshan Neupane, CEO of NIC Asia Bank, has started hearing from within the bank that the bank is in crisis.
CEO Neupane has not been able to recover the loans from those who have given loans in an arbitrary manner in the past. Apart from this, other managerial problems have also caused the crisis to the bank, the employees of the bank alleged.
The bank’s debt recovery has been affected and the profit has been affected due to the addition of bad loan ‘provisioning’. Last year, the bank made provisioning of Rs 4.14 billion. In the previous year, the bank’s provisioning was Rs 3.68 billion.
It is not good for a bank that takes money from citizens to spend a lot of money on loan losses. However, NIC Asia Bank has been falling prey to its past mistakes lately. Reliable sources say that the bank has not taken any initiative to improve.
The Rastra Bank is also silent in the remote position of NIC Asia Bank. According to sources, rastra bank has not been able to do anything to NIC Asia Bank due to political settings. The financial statements of the last fiscal year released by the bank show that the condition of the bank is very bad. However, it is also suspected that financial statements have been published by making some ‘mismatches’.
The bank’s bad loans rose 2.83 per cent to 6.28 per cent. Bad loans increased to 6.28 per cent from 3.45 per cent in the previous fiscal year.
Similarly, the bank’s interest income decreased by 4.46 percent to Rs 10.25 billion.
Last year, the bank’s net profit stood at Rs 5.21 billion. In the previous fiscal year, the profit was negative by Rs 2.66 billion. At the same time, the shareholders of the bank will not get dividends this time as well. The bank’s earnings per share is Rs 1.08 and net worth is Rs 127.30.
NIC Asia Bank is one of the most controversial commercial banks in Nepal’s banking sector in recent years. Due to repeated violations of the ‘Unified Directives, 2074’ of the Rastra Bank, lack of transparency, unequal treatment of customers and weakness of the internal governance system, the bank has repeatedly come under the eyes of the regulator. Ironically, however, the impact of regulatory warnings and action has not been seen in the bank’s behavior. Looking at the condition of this bank, it can be clearly seen that karnali development bank is on the path.
