Contractors’ contract terminated will increase bank’s provisions, decrease profit: Spokesperson Poudel

लगानी न्यूज

२३ मंसिर २०८२, मंगलवार १३:३४December 9, 2025

Kathmandu. Executive Director and Spokesperson of Nepal Rastra Bank, Guru Prasad Poudel, said that if the government terminates the contract, the loan-loss provision of the bank will increase and the profit will decrease. He said this at an interaction programme with stakeholders on sick contract management organized by Nepal Infrastructure Journalists’ Society.

He said that when the contract agreement is canceled, such contractor companies will not be able to take loans, due to keeping such loans in inferior loans, the loan loss provision will increase and the profit will decrease.TAG_OPEN_div_12 According to him, banks are now forced to blacklist the banks as they are unable to raise loans. He said that around one and a half lakh businessmen are blacklisted across the country.

Similarly, the ability to use credit has decreased significantly in recent years. He believes that the demand for loans may decrease further if such contracts are terminated. A construction company takes loans under various headings. When the government terminates the contract, the bank has to blacklist the borrower. He believes that if the bank puts the borrower on the bank watchlist, the bank’s expenses will increase.

He believes that the country will not be built by blacklisting the construction company

, the bank will not be strong. He said that the bank will not restructure and rescheduling the loan and it will not be wanted.