Signs of Improvement in Bank Asset Quality as Non-Performing Loans Shift in Second Quarter
Summary
Signs of improvement have appeared in bank assets as non-performing loans have decreased for 10 banks in Nepal during the second quarter of fiscal year 2082/83, though the average NPL rate slightly increased.
Key Points
- Non-performing loans (NPLs) decreased for 10 banks in the second quarter compared to the previous quarter.
- The average NPL rate across banks increased slightly from 4.66% to 4.85%.
- 10 banks had an NPL ratio above 5%, and 10 banks had below 5%.
- Banks such as Nabil Bank, Global IME Bank, and Siddhartha Bank successfully reduced their NPLs.
- Some banks, including Himalayan Bank and Prabhu Bank, saw increases in their NPL ratios.
