Kathmandu. President of Nepal Bankers Association Sunil KC has said that the interest rate of banks will decrease. Speaking at a press conference organized by the Bankers' Association on Monday, President KC said that the interest rate of banks will gradually decrease.

KC, who is also the Chief Executive Officer (CEO) of NMB Bank, said that due to the increase in bad loans of the banks, they had to make a provision of 16 billion rupees in the first quarter. While in the same period of last year, they made only 7 billion rupees as a provision. He said that the profit of 13 banks has decreased due to the high interest rates that have increased globally.

"Bad loans have increased due to the lack of recovery of the banks. Last year, they had to make a provision of only 7 billion, but this year they had to make 16 billion," he said. Yes.'

He said that due to the slowdown in private sector business, the impact of this has automatically been on the banks. He said that banks have recently increased deposit collection by 1 trillion 20 billion rupees and increased loans by 84 billion rupees.

He said that the average bad loans of the banks were 2.98 percent last year and increased to 3.61 percent by the end of October.

Himalayan Bank CEO Ashok Rana also said that the bank's interest rate will decrease. He said that the policy of the National Bank has influenced the interest rate.