Kathmandu. The ratio of non-performing loans to banks and financial institutions has reached 5.24 percent. This ratio is fiscal year 2080. It was limited to 3.98 percent in 81.
According to the Central Bank, Nepal Rastra Bank, the amount of non-performing loans has reached Rs 289.56 billion in mid-May 2025. The previous fiscal year 2080. This amount is Rs 95.80 billion more than the mid-April 2018. At that time, the non-performing loans stood at Rs 193.76 billion.
If the quarterly principal interest installment on loans disbursed by banks and financial institutions is not received even for six months after the expiry of the deadline, it automatically turns into non-performing loans. Similarly, if the period between six months to one year is classified as suspicious and if the one-year period is completed, it is classified as bad loan.
Nepal Rastra Bank (NRB) had increased the non-performing loan ratio from 5 per cent to 8 per cent in March last year.
With the increase in bad loans, non-banking assets increased by 63.45 percent compared to the previous year. Non-banking assets increased from Rs 27.6 billion in mid-May 2024 to Rs 45.11 billion in mid-May 2025.
