Bad Loans at 9 Commercial Banks Exceed 5%, Everest Lowest and NIC Highest: Who Stands Where?

Kathmandu — By the end of the third quarter of fiscal year 2025/26, non-performing loans (NPL) of commercial banks have crossed 5%. According to data published by banks up to mid-April 2026, bad loans have risen to 5.25%.

Compared to the same period of the previous fiscal year, banks’ bad loans are higher by 0.42 percentage points. In the same period last year, NPL stood at 4.82%.

During this period, bad loans declined at 10 commercial banks, while they increased at 10 banks. In the review period, 9 banks have NPL ratios above 5%.

Compared to the third quarter of the previous fiscal year, during the same period this year, Everest Bank, Kumari Bank, Rastriya Banijya Bank, Nabil Bank, Nepal Bank, Laxmi Sunrise Bank, Global IME Bank, Machhapuchchhre Bank, Siddhartha Bank and Nepal SBI Bank have succeeded in reducing bad loans. All other banks have recorded an increase.

By the end of the first nine months of the current fiscal year, NIC Asia Bank ranks first with the highest bad loan ratio. Its NPL increased by 3.10 percentage points to 8.85%.

Similarly, Prabhu Bank’s NPL rose by 3.75 percentage points to 8.84%, Nepal Investment Mega Bank’s by 2.35 percentage points to 8.41%, and Himalayan Bank’s by 0.30 percentage points to 7.98%.

Everest Bank has the lowest bad loan ratio, with its NPL declining by 0.03 percentage points to 0.61%.

Standard Chartered Bank has an NPL of 1.81%, Nepal SBI Bank 2.53%, Siddhartha Bank 3.71%, Sanima Bank 3.99%, Machhapuchchhre Bank 4.01%, and Nabil Bank 4.37%.