Kathmandu. The non-performing loans of commercial banks have increased in the fourth quarter of the last fiscal year as compared to the corresponding period of the last fiscal year.

Bank loans have crossed 5 percent on an average. The non-performing loans of banks increased by 0.83 percentage points to 5.43 percent as of mid-July of the previous fiscal year from 4.60 percent in the corresponding period of the previous fiscal year.

During this period, the non-performing loans of half a dozen banks decreased while the remaining 16 banks increased. Nabil Bank, Machhapuchchhre Bank, Nepal SBI Bank, Sanima Bank and Himalayan Bank are among the banks that have reduced non-performing loans. The non-performing loans of these banks have decreased while the non-performing loans of the remaining banks have increased. Nabil Bank’s non-performing loan decreased by 0.28 percentage points to 4.20 percent.

Similarly, Machhapuchchhre Bank decreased by 0.02 percentage points to 3.98 percent, Nepal Bank decreased by 0.38 percent to 4.18 percent, Nepal SBI decreased by 0.43 percent to 2.92 percent, Sanima Bank decreased by 0.14 percent to 2.87 percent and Himalayan Bank decreased by 0.01 percent to 7.96 percent.

As of mid-July of the last fiscal year, 8 banks had more than 5 percent non-performing loans. Among them, Citizens Bank secured 5.88 per cent stake, Kumari Bank 7.46 per cent, Nepal Investment Mega Bank 8.66 per cent, Laxmi Sunrise 5.23 per cent, NIC Asia 9.26 per cent, Prabhu Bank 15.55 per cent, Himalayan Bank 7.96 per cent and Prime Bank 6.69 per cent. The non-performing loan stood at 0.49 percent as of mid-July last year.