Financial sector shows mixed signals as digital banking expands, NPL rises to 5.42%

www.fiscalnepal.com · 13 hours ago

The Economic Survey 2082/83 indicates that Nepal's financial sector is experiencing both expansion in digital transactions, which enhances financial access, and increased pressure from rising non-performing loans (NPLs) and slowing credit growth. While the banking sector remains structurally stable with adequate capital and liquidity, economic slowdown has impacted loan demand and repayment, leading to a rise in NPLs to 5.42 percent. Digital banking users and electronic transactions have surged, supported by an expanding payment infrastructure.