Bhotekoshi flood risks Rs 10 billion in bank investment
Summary
The August 26 Bhotekoshi–Trishuli flood has severely damaged four hydropower projects financed by Nepal’s commercial banks, putting Rs 7.5 billion in investments at risk. Including loans to flood-affected residents and businesses, the banking sector faces total exposure of around Rs 10 billion.
Key Points
- Four of nine hydropower projects financed by commercial banks were severely damaged by the Bhotekoshi–Trishuli flood, risking Rs 7.5 billion in bank investment.
- The hardest-hit projects include Mailung Khola, Langtang Khola, Rasuwagadhi and Upper Trishuli-3B, while Salasungi’s transmission line was destroyed and power sales halted.
- Banks and financial institutions have large exposures in these projects, including loans led by Laxmi Sunrise Bank, Siddhartha Bank, Kumari Bank, Nabil Bank, NMB Bank and others.
- Including loans to flood-affected residents and enterprises in Rasuwa, Nuwakot and Dhading, the banking sector’s total risk from the disaster is estimated at Rs 10 billion.
