Kathmandu. Corona virus (Covid-19) has affected the overall economy. Its impact has also been seen in the Nepali banking sector.

If we look at the statistics of the last Fiscal Year 2076/77, the profit of commercial banks has decreased by Rs. 8.68 billion. In the last Fiscal Year 2076/77, 27 commercial banks have earned Rs. 54.31 billion. In the previous Fiscal Year 2075/76, the commercial banks had earned a net profit of Rs. 63 billion 999.

Covid has not only reduced the bank's profits, but also increased non-performing loans.

 The new loans could not be invested and the banks got into more trouble as the interest on the loans did not rise. Non-performing loans of banks increased to 1.73 percent from 1.44 percent in the previous fiscal year.

Dev Kumar Dhakal, executive director of Nepal Rastra Bank, says that the non-performing loans of banks have increased due to Kovid. He said that the lack of business due to Kovid has affected the bank.

NMB Bank Chairman Vin Golyan also said that Kovid has affected the banking sector. The effect of which was seen in non-performing loans. Golyan, who is also the president of the Confederation of Banks and Financial Institutions, said that the non-performing loans of most banks have also increased due to the provisioning provision.

Banks with foreign investment are at the forefront of reducing non-performing loans. Everest Bank is the number one bank with the lowest non-performing loan (NPL). Punjab National Bank, an Indian-invested bank, has the lowest NPL at 0.22 percent.

NPL has increased from 0.16 percent in FY 2075/76 to 0.22 percent in FY 2076/77.

Nepal SBI Bank, which has foreign investment, is the second lowest NPL.

Nepal SBI Bank has 0.23 percent non-performing loans. The NPL has increased to 0.23 from 0.20 percent in the previous fiscal year.

Similarly, Standard Chartered Bank is ranked third, Sanima Bank is ranked fourth and Machhapuchhre Bank is ranked fifth. These banks have non-performing loans from 0.15 to 0.44, 0.08 to 0.48 and 0.37 to 0.54 percent respectively.