Kathamdu. Nepal Bankers Association has said that the profit of commercial banks has decreased by 28 percent. Association president Sunil KC said that the net interest income of the banks did not increase in the first quarter of the current financial year. In a press conference organized by the association on Monday, KC presented the fact that there has been a high increase in the amount of possible risk provision (loan loss provision).

According to him, the amount of loan loss provision was 7 billion in the first three months of last year, but it has reached 16 billion by the end of the current year. KC said that in the first quarter of the current year, the profit of the banks could not increase due to the loan loss provision.

Casey said that the impact of economic recession has affected the banks. He said that Nepali Bank is in good condition compared to South Asian countries. He says that the interest rate abroad is higher than in Nepal. Interest rates have decreased in Nepal recently. He said that due to lack of demand for loans, banks are reducing premiums. He said that there is a directive of the National Bank to maintain the spread rate at 4 percent and the banks are working accordingly.

The NBA informed people that they have committed to help the victims of the earthquake in Jajarkot with 50 million rupees. KC expressed the commitment of the union to help in the reconstruction of the earthquake affected areas.