As of the third quarter of the current fiscal year, 14 commercial banks have reduced their non-performing loans. However, the ratio of 12 banks has increased.

Bad loans of government-owned Rastriya Banijya Bank, Krishi Vikas Bank and Nepal Bank are higher than those of private commercial banks.

The average NPL ratio of commercial banks has reached 1.70 percent. It was 1.53 percent in the corresponding period of the previous year. Debt recovery has risen 0.17 percentage points since the Corona virus hit.

As of mid-April, Indian-invested Nepal SBI Bank had the lowest NPL ratio at 0.19 percent. The other two foreign-invested banks, Everest Bank and Standard Chartered, are also among the three banks with the lowest NPL ratio. Himalayan Bank and NMB Bank have not been able to maintain below 1 percent.

The Rastriya Banijya Bank had the highest share of 4.64 per cent while the other government-owned Agriculture Development Bank also had 3.64 per cent. Nepal Bank also has 3.64 percent.

There are 10 commercial banks with less than 1 percent bad loans. The NPL ratio of 11 commercial banks has remained above 2 percent while that of 6 commercial banks has remained above 2 percent and less than 2 percent.

NMB Bank's NPL ratio increased by 1.69 points to 2.48 percent.

Civil Bank has reduced bad loans by 1 percent to 2.96 percent during the review period.

Nepal Rastra Bank (NRB) has made an arrangement to maintain the bad loan ratio only up to 5 percent less than the average credit flow.