KATHMANDU: Non-performing loans (NPLs) in Nepal’s banking sector have increased, reaching 5.60% in the third quarter of fiscal year 2025/26, according to Nepal Rastra Bank.

Among 20 commercial banks, NIC Asia Bank has the highest NPL ratio at 8.85%, with Rs 22.32 billion in loan loss provisioning.

In terms of provisioning, Nepal Investment Mega Bank leads with Rs 28.45 billion (NPL: 8.41%), followed by Kumari Bank with Rs 28.20 billion (NPL: 6.94%).

Global IME Bank reported an NPL of 4.97% with Rs 27.61 billion provisioning, while Himalayan Bank posted 7.68% NPL with Rs 25.18 billion, and Prabhu Bank recorded 8.84% NPL with Rs 22.84 billion provisioning.

Other banks include Nabil Bank (4.37%), Laxmi Sunrise Bank (5.29%), Rastriya Banijya Bank (4.48%), Prime Commercial Bank (6.39%), Nepal Bank Limited (4.96%), NMB Bank (4.95%), Agricultural Development Bank (5.06%), Citizens Bank International (6.82%), Siddhartha Bank (3.71%), Sanima Bank (3.99%), Machhapuchchhre Bank (4.01%), Nepal SBI Bank (2.53%), Everest Bank (0.61%), and Standard Chartered Bank Nepal (1.81%).