The total assets of Nepali commercial banks have surpassed Rs 7.468 trillion, marking an 11.28% increase over the past year.
Data from Nepal Rastra Bank (NRB) reveals that as of mid-November in the fiscal year 2023/24, the combined assets of 20 commercial banks stood at Rs 6.711 trillion. This represents a significant growth of Rs 757.44 billion within one year.
Among the banks, 19 out of 20 successfully increased their asset valuations during this period. However, NIC Asia Bank experienced a 12.27% decline, with its assets decreasing to Rs 392.86 billion.
In contrast, Global IME Bank recorded the highest growth, with a 14.84% increase (Rs 84 billion), bringing its total assets to Rs 649.97 billion. Nabil Bank also achieved substantial growth, adding Rs 74.64 billion to reach Rs 606.60 billion in total assets.
Additionally, NRB data shows that non-banking assets (NBAs) of commercial banks rose by Rs 1.20 billion between mid-July and mid-November of the current fiscal year. The total value of NBAs increased from Rs 30.17 billion to Rs 31.38 billion during this period.
Non-banking assets typically consist of fixed properties held as collateral by borrowers. These assets are auctioned by banks when loans turn into bad debts. The proceeds from these auctions can offset the provisioning required for bad debts. However, the rising value of NBAs indicates growing risks in asset management, as banks face higher provisioning demands against bad loans.
