KATHMANDU, Dec 13: The value of the total assets of the Nepali commercial banks stands at more than Rs 7.468 trillion with an increment of 11.28 percent in their assets held over the past one year.
According to Nepal Rastra Bank (NRB), the assets valuation of 20 commercial banks was Rs 6.711 trillion as of mid-November of the fiscal year 2023/24. In the past one year, the total asset holding of the banks has increased by Rs 757.44 billion.
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Except NIC Asia Bank, the remaining 19 commercial banks were successful in increasing their assets valuation in the review period. NIC Asia Bank witnessed its assets value decline by 12.27 percent to Rs 392.86 billion.
Over the period, Global IME Bank had its assets value increased by the largest of 14.84 percent (Rs 84 billion) to Rs 649.97 billion. Nabil Bank with an increment of Rs 74.64 billion holds assets worth Rs 606.60 billion at present.
According to the NRB, the non-banking assets of the commercial banks grew by Rs 1.20 billion during mid-July and mid-November of the current fiscal year. Over the period, the value of non-banking assets of the banks increased to Rs 31.38 billion from Rs 30.17 billion.
The non-banking assets are the fixed properties that are kept in collateral by the borrowers, which are taken to auction by banks in case the loans convert into bad debt. Banks can write-off the provisioning amount of bad debts by the amount received out of the auctioned collaterals. The increased non-banking assets show that banks are facing risks of asset management with an increasing amount of provisioning against bad debts.
