Kathmandu. The number of commercial banks allocated for lonely provision has increased by 45.04 percent.

Due to the GenG agitation, non-payment of loans issued by banks, falling interest rates, etc., the amount allocated by the banks for loan provision has been gradually increasing. The profit of the bank has decreased by about 19 percent due to the increase in loan provision.

Bad loans of banks are also increasing. In the first quarter of the last fiscal year, the NPA has increased from an average of 3.88 percent to 4.70 percent. As a result, bankers argue that the amount of money that banks keep in provision is increasing.

The banks that have not been able to disburse loans despite low interest rates and low interest rates have been badly affected by the fires and vandalism in the name of the Genji movement on September 23 and 24. According to Home Minister Om Prakash Aryal, 211 structures were completely damaged while 427 private structures were damaged during the agitation.

The impact of this was seen in the financial situation of the first quarter of the current fiscal year. Deposits have not increased in banks for a long time, banks have not been able to take deposits. Private sector business has not been able to grow. Banks have not been able to raise loans. The impact of this has been seen on the amount and profit that the bank has set aside for loan loss.

At present, bad loans are increasing due to the failure of banks to collect the principal interest on the loan. As a result, bankers say that a large amount of money has to be set aside for loanage provision.

In the first three months of the current fiscal year, banks have allocated Rs 5.17 billion for loan provision. This amount is 45.04 percent more than the same period last year. Such amount had been Rs 3.57 billion in the same period of the previous year.

The provision of 9 banks has been increased till mid-October. They are Agricultural Development Bank, Siddhartha Bank, Kumari Bank, AIC Asia Bank, Rastriya Banijya Bank, Sanima Bank, Nabil Bank, Prime Bank and Everest Bank. According to the financial report published by the banks, the amount allocated by Global IME Bank and Nepal Bank for the provision has decreased. Similarly, Nepal Investment Mega Bank, Laxmi Sunrise Bank, Citizens Bank and Prabhu Bank have seen negative loans.