Net Profit of Development banks of Nepal has increased : Bad loans of Bikas Bank exceeded 27 percent

Apr Sat 2024 02:50:52

485 views

Net Profit of Development banks of Nepal has increased : Bad loans of Bikas Bank exceeded 27 percent

Kathmandu: Bad loans of development banks have exceeded 27 percent. According to the latest data published by Nepal Rastra Bank, the NPL of banks has reached 27.75 percent.

The impact of economic recession is now seen in the entire financial system. Banks and financial sectors are under the pressure of bad loans. The effect of which is seen in the profit.

Banks and financial companies have become more affected by the financial chaos seen in the market recently. Due to the inability to create an investment environment, liquidity has accumulated in the banking system.

Demand for consumer goods has decreased in the market. The increasing graph of bad loans is increasing the risk of investment in banks and financial institutions. The entire financial system has now become haunted due to slowing down of economic activities and stalled development works.

According to the latest data published by the National Bank, the bad loans of Narayani Development Bank have reached 27.75 percent. Similarly, Saptakoshi Development Bank's NPL has reached 14.16 percent.

Similarly, it is 2.51 percent of Muktinath Development Bank, 4.88 percent of Jyoti Development Bank, 2.95 percent of Garima Development Bank and 4.21 percent of Mahalakshmi Development Bank, according to the data of Rashtra Bank.

During this period, the bad debt of Shine Resunga Development Bank was 2.62 percent. Similarly, Lumbini Development Bank has 3.55 percent, Sangrila Development has 4.89 percent and Kamna Sevaka Development Bank has 3.42 percent.

According to Rastra Bank, Excel Development Bank's bad debt has reached 4.70 percent, while Miteri Development's has reached 2.74 percent. Similarly, bad loans of Sindhu Bikas Bank were found to be the lowest at 1.05 percent.

NPL of Karnali Development has reached 4.47 percent, Green Development 4.70 percent, Corporate Development 4.66 percent and Salpa Development Bank's bad loans have reached 6.45 percent, according to the National Bank.