Kathmandu. Industrialist and Nepali Congress MP Binod Chaudhary has warned that 80 percent of the banks may be closed.

Speaking at a webinar conference organized by the Confederation of Nepalese Industries, Chaudhary gave the warning. He said that 80 percent banks and financial institutions could be shut down if the government would reduce the interest and repayment time of the loan, but not provide subsidy equal to the interest given by the government to the banks.

Private sector banks are still at risk due to Covid 19, as government banks were in trouble two decades ago. "Earlier, state-owned banks were in serious crisis. After the Bank of Nepal and Rastriya Banijya Bank went bankrupt, they had to take loans from the World Bank and the Asian Development Bank to recover. He said that now the private sector banks are also in a position to reach the same level.

Binod Chaudhary is also owner of Nabil Bank's more than 51 percent shares holder.