Kathmandu. Non-banking assets (NBAs) of banks and financial institutions have increased by Rs 18 billion in a year. The non-banking assets of commercial banks, development banks and finance companies stood at more than Rs 46.99 billion in the 11 months of the last fiscal year, according to data released by the Nepal Rastra Bank.

Non-banking property is the property taken from the bank at the time of the mortgage auction, which the borrower has mortgaged to the financial institution while taking the loan, if the amount of loan disbursed from the bank and financial institution cannot be recovered due to various reasons.

Such assets of banks stood at Rs 28.73 billion till Mid-June of the previous fiscal year. In the last one year, the NBAs of the banking sector have increased by rs 18.25 billion. The bank’s bad loans have also been on the rise in the last few years. Non-banking assets have also increased due to the increase in bad loans of the bank.

Of the 20 commercial banks operating in the last one year, the NBAs of 17 commercial banks have increased. Nepal Rastra Bank (NRB) data shows that the non-banking assets of a bank are zero. Standard Chartered Bank does not have any non-banking assets till date.

In the last one year, two commercial banks have been able to reduce such assets compared to last year. Machhapuchchhre Bank and Siddhartha Bank have reduced their NBA compared to one year. Machhapuchchhre Bank has reduced its NBA by about Rs 300 million in a year. The bank’s NBA stood at Rs 967.9 million in the 11 months of the current fiscal year. In the 11 months of the last fiscal year, its NBA was around Rs 1.26 billion.

Similarly, Siddhartha Bank’s NBA stood at Rs 720 million during the period. In the same period of the previous fiscal year, its NBA was Rs 788.9 million. Nepal Rastra Bank (NRB) has said that the bank’s non-banking assets have decreased by Rs 64.2 million compared to the previous fiscal year.

Himalayan Bank is the largest commercial bank with the highest number of non-banking assets during this period. The bank has an NBA of over Rs 5.31 billion. The bank’s assets have increased by more than Rs 3.62 billion in the 11 months of the last fiscal year. In the last fiscal year, its assets were only Rs 1.69 billion. Himalayan Bank has also been included in the list of banks with the highest increase in non-banking assets in a year.

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Similarly, the non-banking assets of development banks have doubled in the last 11 months of the current fiscal year. In the 11 months of the last fiscal year, the assets of the development bank have increased from Rs 2.52 billion to Rs 5.54 billion in the 11 months of the current fiscal year. The NBA of Development Bank has increased by Rs 2.93 billion in one year.

Out of the 17 development banks in operation at present, four have been able to reduce the NBA in the last one year. The rest of the development banks have increased. Karnali Bikas Bank is the largest development bank to increase NBA during this period. The non-banking assets of this development bank, which was zero for 11 months of the last fiscal year, have reached Rs 1.67 billion in the 11 months of the current fiscal year. Karnali Bikas Bank is also among the development banks with more than One billion non-banking assets till this period.

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Similarly, the non-banking assets of the finance company also increased by Rs 1.26 billion during the period. During this period, NBA Goodwill Finance Company has increased the most. According to the Rastra Bank, the company’s assets have increased by Rs 478 million. West Finance Company has been able to reduce its non-banking assets in the 11 months of this fiscal year compared to the 11 months of the last financial year.

During this period, the non-banking assets of this finance company decreased by Rs 7 00,000. During this period, the non-banking assets of seven finance companies were more than Rs 100 million, while the remaining finance companies had assets of less than Rs 100 million.

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