Bad loans of banks increased in the third quarter as compared to the second quarter.
The downfall was followed by an increase in bad debts of banks. But banks and financial companies kept bad debts under control for long periods of the lockdown. But now the bad loans of banks and financial companies have increased.
According to the financial statements released by the banks, bad debts of most of the commercial banks have increased. Bankers say that even if bad loans increase this year, it should be taken as normal.
Bankers estimate that the rate will rise further if the government does not take a policy to support it.
According to Anil Upadhyaya, President of Nepal Bankers Association and CEO of Krishi Vikas Bank, the policy of NRB is the main reason why bad loans of banks are not a cause of panic even in the Corona period.
He said, “NRB has extended the period of six months for those who have exceeded time limit.” That even supported. Similarly, decisions were taken not to take any action by extending the rescheduling period of the loan, so that the non-performing loans seem to be under control. ‘
However, he argued that if NRB did not provide such facilities, non-performing loans would increase.
