Kathmandu. Non-banking assets have been piled up in commercial banks due to the slowdown in the recovery of bad loans. Banks are also under pressure due to increasing liquidity on the one hand and new credit flow on the other. Currently, non-banking assets worth more than Rs
43.5 billion are deposited in commercial banks.
Nepal Rastra Bank (NRB) has released the current fiscal year 2082. According to the data of the first quarter of 2018, 19 commercial banks have accumulated non-banking assets worth Rs 43.57 billion. In the same period of the previous FY, the bank had non-banking assets worth Rs 34.86 billion. Non-banking assets (NPAs) were added by 24.98 percent in the review period compared to the previous year. Among the commercial banks, Standard Chartered Bank does not have non-banking assets.
In the review period, four of the non-banking assets of commercial banks decreased while 15 increased compared to the previous year. Among the commercial banks, the non-banking assets of Prime Bank and Nepal SBI Bank have increased the most. However, Kumari Bank, Machhapuchchhre Bank, Everest Bank and Rastriya Banijya Bank have reduced their non-banking assets.
Himalayan Bank Ltd (HBL) has the highest number of non-banking assets as of mid-January of the current fiscal year. The bank has accumulated non-banking assets worth Rs 6.13 billion. In the same period last year, the bank had non-banking assets worth Rs 4.25 billion. Such assets have increased by 44.22 percent compared to the previous year.
Similarly, Global IME Bank has the second largest non-banking asset and Prime Commercial Bank has the third largest non-banking assets. Global IME has non-banking assets worth Rs 5.99 billion and Prime Rs 4.41 billion in the review period. Such assets have increased by 7.70 percent and 118.11 percent respectively compared to the previous year.
Nepal Bank has the lowest number of non-banking assets. The bank has non-banking assets worth Rs 26.42 crore at the end of the review period. Compared to the previous year, the non-banking assets of Nepal Bank increased by 29.45 percent.
How many non-banking assets in which bank?
