Average NPA of Commercial banks stands at 3.16; Grand & Prabhu Bank are riskier

ShareSansar, August 27:

The average non performing loan of the commercial banks is lower in the fourth quarter of the last fiscal year 2071/72 compared to 70/71 FY.

Average non-performing loan came down to 3.16% (2.02% if skewed data is removed) in the fourth quarter of the last fiscal year, whereas it stood at 3.43 percent in the previous fiscal year.

Out of the 30 commercial banks, only two banks NPA remained above 5%, which is regarded riskier according to the NRB directives.

Grand Bank Nepal Limited (GRAND) which is in the final stage of acquired by Prabhu Bank Limited (PRVU) has an NPAof  36.20 percent, whereas Prabhu Bank has the second highest NPA of 7.39 percent.

Although PRVU has shown tremendous improvement in the NPA in the last fiscal year. The NPA of Prabhu Bank has come down to 7.39 percent from 24.29 percent of the previous fiscal year.

The figure suggests that the riskiness of the overall loan portfolio of the banks has decreased.

Here is the list of  commercial banks with their NPA in ascending order as of fourth quarter 2071/72.