Kathmandu. Nabil Bank’s Chief Executive Officer Manoj Gyawali has said that if the government does not pay the contractors on time, the non-performing loans of the banking sector will increase.

Speaking at a meeting of the Finance Committee under the House of Representatives today to discuss the upcoming monetary policy, he said that there is a risk of increasing the non-performing loan (NPL) due to the delay in the payment of the contract and the delay in payment.

He said that the banks have a loan investment of about five trillion rupees in the construction sector and if the loan is not repaid on time, the profit of the banks will decrease and the revenue collection will also be affected.

He said that it would be easier if the monetary policy and the policies of the government bodies could make easy arrangements for payment and transfer. Currently, banks pay around Rs 38 billion in income tax annually.

“Today, the banking sector pays only about 13 per cent of the total revenue as income tax. We pay Rs 37-38 billion in income tax every year, which is increasing. But now the banks are in a position to incur losses due to various provisions being made. It also affects the revenue source of the state, the bankers incurring losses means that the state is also in trouble,” he said, adding, “The current situation of the construction business has put pressure on the banking system.” Contractors are in trouble, if their contracts are stopped, then the claim will come again, there is a loan of around Rs 5 trillion in the banking sector as of today. As a result, the big NPL is going to increase. This can also affect the profit of the bank and affect the revenue collection. ”

He said that the customers who do not repay the loan should be classified. He suggested that action should not be taken against the borrowers who are unable to repay the loan intentionally and due to circumstances.

Currently, if the loan reaches the ‘loss’ category within a year, the process of blacklisting, freezing or confiscating the passport can be initiated. He said that this will put the businessmen who are in real trouble in more trouble.

He suggested that action should be taken against those who intentionally do not repay the loan and the businessmen who have invested in business, economic recession or are unable to repay the loan should be facilitated for some time.

CEO Gyawali said that 45 percent of the total loan should be made in the specified areas. He said that some of these loans are not reflected in the data.

“We can’t get data on the amount of loans that go to the agriculture sector. The investment in the energy sector is seen in the energy sector. Electricity has been generated there. Apart from that, the results do not match according to the investment made in other sectors. He reminded that the loans given in agricultural loans were defaulted, loans were defaulted and there was no agricultural production. He said that the NRB would push the areas where there is no demand and if it does not take action, then the anomalies seen will be stopped.