Average NPL of commercial banks in decreasing trend; seven commercial banks average NPL below 1%
Mon, Mar 21, 2016 3:00 AM on Latest, Exclusive, Featured, Stock Market,
Sharesansar has analyzed the Non Performing Loan(NPL) of the last five quarters of all the 29 commercial banks of Nepal (Grand Bank is not included in this study due to its merger with Prabhu Bank Limited).
Out of 29 commercial banks, there are seven banks with average NPL less than 1%. Banks like Sanima Bank (SANIMA), Nepal SBI Bank (SBI), Standard Chartered Bank (SCB), Centruy Commercial Bank (CCBL) and Everest Bank (EBL) has maintained Its NPL below 1% for the last five quarters whereas Prabhu Bank and Agriculture Development Bank has the highest NPL. Prabhu Bank has the NPL of 8.05% on average . Agriculture Developmnt Bank has the NPL of 5.12% on average.
NMB Bank (NMB) was also successful in maintaining its NPL below 1% in each quarter before its merger with other banks and financial institutions. Right after the merger, its NPL rose to 1.65% in the second quarter of the FY 2072/73, whereas on average it has maintained its NPL at 0.71%.
The average NPL of commercial banks seems to be in decreasing trend. Average NPL of commercial banks by the end of the second quarter of FY 2072/73 stands at 1.87%, which is 19% less than the average NPL of the corresponding quarter of FY 2071/72. The average NPL of the commercial banks stood at 2.23% by the end of second quarter of the FY 2071/72.
Sanima Bank has the lowest NPL out of all the commercial banks. The average NPL of Sanima Bank for the past five quarters is at 0.06%.Everst Bank Limited (EBL), Nepal SBI Bank (SBI), Standard Bank Limited (SCB) has also been successful in maintaining NPL below 1%.
Of all the commercial banks, Prabhu Bank (PRVU) has the highest NPL. The bank has an NPL of 8.05% in the second quarter of FY 2072/73 which is less by 49% from the NPL of corresponding quarter of FY 2071/72. Reason behind such high NPL of Prabhu Bank is due to its merger with banks that has poor financial performance.
After Prabhu Bank (PRVU), government owned Agriculture Development Bank (ADBL) has the highest NPL. Its NPL stands at 5.36 by the end of the second quarter of the ongoing fiscal year.
The average NPL of commercial banks seems to be in decreasing trend. Average NPL of commercial banks by the end of the second quarter of FY 2072/73 stands at 1.87%, which is 19% less than the average NPL of the corresponding quarter of FY 2071/72. The average NPL of the commercial banks stood at 2.23% by the end of second quarter of the FY 2071/72.
Sanima Bank has the lowest NPL out of all the commercial banks. The average NPL of Sanima Bank for the past five quarters is at 0.06%.Everst Bank Limited (EBL), Nepal SBI Bank (SBI), Standard Bank Limited (SCB) has also been successful in maintaining NPL below 1%.
Of all the commercial banks, Prabhu Bank (PRVU) has the highest NPL. The bank has an NPL of 8.05% in the second quarter of FY 2072/73 which is less by 49% from the NPL of corresponding quarter of FY 2071/72. Reason behind such high NPL of Prabhu Bank is due to its merger with banks that has poor financial performance.
After Prabhu Bank (PRVU), government owned Agriculture Development Bank (ADBL) has the highest NPL. Its NPL stands at 5.36 by the end of the second quarter of the ongoing fiscal year.
