Kathmandu. In the middle of June, the 'loan recovery' (debt recovery) of the banks has been satisfactory. Earlier, it was said that the mortgage could not be sold and interest could not be recovered, but in the end of June, the recovery of the banks was seen to be good.

Bankers say that loan recovery has been good at a time when banks' bad loans are expected to increase due to liquidity problems in banks and financial institutions. When the economy was in trouble due to the crisis of the corona virus spread as a global epidemic and the war between Russia and Ukraine, many people predicted that the recovery would also be a problem if the banks were directly hit by it. In the absence of recovery, provisioning was also expected to increase.

At the same time, the banking sector regulator Nepal Rastra Bank tightened the regulation and the banks were under stress. The bankers were saying that the non-banking assets (NPA) of the banks may also increase in the fourth quarter due to non-payment of loans and non-sale of mortgages. However, the bankers believe that the fourth quarter was better than expected when the banks focused on recovery without giving much priority to other matters in the end of June.

Deputy Chief Executive Officer (DCEO) of Machhapuchchhe Bank Sarjukumar Thapa says that the loan recovery in mid-June is satisfactory. Everest Bank Chief Executive Officer (CEO) Sudesh Khaling also says that the recovery in the fourth quarter is good.

The CEOs of various banks are of the opinion that the recovery of the banks is satisfactory by the end of June, and looking at the condition of the provisions, there is a possibility that the profit data of the banks will come well. According to them, the recovery of other sectors except hotel and tourism, construction and auto sector is good, but the profit will not be affected much.