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Non-performing loans of banks increases

Non-Performing Loans (NPL) commercial banks have increased in the last fiscal year compared to a fiscal year ago.

“The average non-performing loans of commercial banks increased to 3.27 per cent to Rs 29.18 billion in the last fiscal year 2013-14,” according to the unaudited reports of 30 commercial banks. The banks have lent Rs 892.26 billion. However, the non-performing loans of commercial banks stood at 2.45 per cent in the fiscal year 2012-13.

Among the 30 commercial banks, Sanima Bank had the lowest NPL of 0.02 per cent – out of the total loans of Rs 20.41 billion in 2013-14 – followed by Nepal SBI Bank (0.26 per cent), Standard Chartered Bank (0.48 per cent) and NMB Bank (0.55 per cent).

Century Commercial Bank, Lumbini Bank and Everest Bank also had lower NPL than one per cent in the last fiscal year.
The banks need to have less than five per cent NPL, according to the regulatory requirement.

However, the non-perfroming loans of Kist Bank atood at 24.18 per cent, the highest among 30 commercial banks, followed by Grand Bank Nepal (19.09 per cent). Kist had a total loan portfolio of Rs 13.73 billion, whereas Grand had a total loan portfolio of Rs 15.15 billion.