NRB board approves loan portfolio review report, Prepares directives for commercial banks over irregularities

www.fiscalnepal.com · 1 week ago

Nepal Rastra Bank's board has approved a loan portfolio review report for the country's 10 largest commercial banks, paving the way for directives against those with lending irregularities. The report, conducted by Bangladesh-based Howladar Yunus & Co. as part of an IMF agreement, found higher non-performing loans than publicly disclosed, with some banks exceeding the 10 percent threshold. Concerns were also raised about capital adequacy ratios, with Himalayan Bank and Rastriya Banijya Bank reportedly falling short of minimum requirements. The central bank will now seek explanations from banks and issue institution-specific instructions.