Kathmandu. In the first three months of the current fiscal year 2083/84, the profit of 20 commercial banks increased by 45.59 percent to Rs 19.14 billion.

More than the happiness of the profit of commercial banks, the increasing non-performing loans are more of a challenge. At present, the non-performing loans of the banks are increasing a lot. The non-performing loans of 12 out of 20 banks have increased.

The non-performing loans of the remaining 6 banks have decreased. According to the financial statement published by the banks, the non-performing loans have increased by 0.78 percentage points till the end of September of the current financial year.

The non-performing loans of banks have reached an average of 5.64 percent. In the same period of the last fiscal year, it was 4.86 percent. At present, the non-performing loans of banks are more than 5 percent.

According to the banks, there are 8 banks with more than 5 percent non-performing loans as of mid-October.

Prabhu Bank has the highest number of non-performing loans till the end of October. The non-performing loan of the bank has reached 14.80 percent. It was 5.78 percent in the same period of the previous year. The non-performing loan of the bank has increased by 9.02 percentage points in this period.

NIC Asia Bank’s non-performing loans increased by 2.82 percentage points to 9.81 per cent. It was 6.99 per cent in the same period last year.

Similarly, non-performing loans of Nepal Investment Mega Bank increased by 2.24 percentage points to 8.87 percent. Similarly, non-performing loans of Kumari Bank increased by 1.74 percentage points to 8.72 percent from 6.98 percent.

Himalayan Bank’s non-performing loans increased by 0.59 percentage points to 7.98 percent. Similarly, Prime Bank’s non-performing loans increased by 1.29 percentage points to 7.15 percent.

Citizens Bank’s non-performing loans declined by 0.04 percentage points to 6.80 per cent. Laxmi Sunrise Bank’s non-performing loans increased by 0.16 percentage points to 5.58 per cent. The non-performing loans of other banks were less than 5 per cent.

According to the financial report published by the banks, the non-performing loan of NMB Bank increased by 0.34 percentage points to 4.92 percent

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Yes.

Global IME Bank decreased by 0.19 percentage points to 4.79 percent, Global IME Bank decreased by 0.19 percentage points to 4.79 percent, Nepal Bank decreased by 0.88 percentage points to 4.61 percent, Nabil Bank’s non-performing loan decreased by 0.25 percent to 4.06 percent, Machhapuchchhre Bank decreased by 0.16 percent to 3.97 percent, Rastriya Banijya Bank’s non-performing loan decreased by 0.06 percent to 3.89 percent.

Similarly, Siddhartha Bank’s non-performing loan declined by 0.10 percentage points to 3.70 percent, Nepal SBI Bank’s non-performing loan increased by 0.18 percentage points to 3.19 percent, Sanima Bank’s non-performing loan decreased by 1.05 percentage points to 2.86 percent, Standard Chartered Bank’s non-performing loan increased by 0.12 percentage points to 1.83 percent and Everest Bank’s non-performing loan decreased by 0.24 percentage points to 0.50 percent. Everest Bank had the lowest non-performing loans.

As the non-performing loans are increasing, banks are working on various options to reduce it. In recent times, as the country’s economy has gradually slowed down, banks are resorting to the strategy of deceiving the borrowers rather than pressuring them to repay the loan principal and interest.

A banker says that at this time, as per the need, the high-level officials of the bank have started reaching out to the borrowers and listening to their problems, suggesting options for loan repayment and recovering the loan. Bankers say that due to the good intentions of some borrowers, due to the economic activities of the country, the non-performing loans have increased due to the inability to pay the principal and interest of the loan on time. The banks say that they understand the problems of such borrowers and are working to recover the loan by using various options.