Banks NPL and CAR in the Q3 of current fiscal year
ShareSansar; July 2:
In terms of Non-performing Loan of Commercial Banks in third quarter, there are three Commercial Banks with NPL more than 5 percent. Grand Bank with the worst performance in this quarter has the highest NPL of 28.67 percent whereas Prabhu Bank falls next after Grand Bank with a NPL of 10.78%. Agriculture Development Bank has a NPL of 5.41%. NPL more than 5 percent is regarded riskier according to the NRB directives.
There are 28 commercial banks with capital adequacy ratio more than 10 percent. Lumbini Bank has a capital Adequacy Ratio of 15.49 percent which is the highest out of all 30 commercial banks. Mega Bank’s capital adequacy ratio stands at 14.39 percent, Agriculture Development Bank’s at 14.13 percent, Nepal SBI’s at 13.54 percent and Civil Bank at 13.46 percent.
What is Capital Adequacy Ratio?
Capital Adequacy Ratio (CAR), also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
What is Non-performing loan?
A loan on which the borrower is not making interest payments or repaying any principal. At what point the loan is classified as non-performing by the bank, and when it becomes bad debt, depends on local regulations.
Commercial Banks NPL and Capital Fund to RWA |
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S.No |
Name of Bank |
Symbol |
NPL |
Capital Fund to RWA |
| 1 | Agriculture Development Bank Limited | ADBL | 5.41% | 14.13% |
| 2 | Bank of Kathmandu | BOK | 1.08% | 11.57% |
| 3 | Century Commercial Bank Ltd. | CCBL | 0.53% | 10.87% |
| 4 | Citizen Bank International Limited | CZBIL | 1.79% | 12.04% |
| 5 | Civil Bank Ltd | CBL | 2.33% | 13.46% |
| 6 | Everest Bank Limited | EBL | 0.63% | 12.04% |
| 7 | Global IME Bank Limited | GBIME | 2.55% | 12.83% |
| 8 | Grand Bank Nepal Ltd | GRAND | 28.76% | 8.53% |
| 9 | Himalayan Bank Limited | HBL | 2.02% | 11.02% |
| 10 | Janata Bank Nepal Ltd. | JBNL | 1.09% | 11.55% |
| 11 | Kumari Bank Limited | KBL | 3.98% | 10.98% |
| 12 | Laxmi Bank Limited | LBL | 1.33% | 10.76% |
| 13 | Lumbini Bank Limited | LUBL | 1.02% | 15.49% |
| 14 | Machhapuchhre Bank Limited | MBL | 1.76% | 11.12% |
| 15 | Mega Bank Nepal Ltd. | MEGA | 1.64% | 14.39% |
| 16 | Nabil Bank Limited | NABIL | 2.05% | 11.81% |
| 17 | Nepal Bangladesh Bank Limited | NBB | 2.05% | 10.63% |
| 18 | Nepal Bank Limited | NBL | 4.48% | 4.58% |
| 19 | Nepal Credit And Commercial Bank Limited | NCCB | 2.40% | 11.77% |
| 20 | Nepal Investment Bank Limited | NIB | 1.28% | 11.88% |
| 21 | Nepal SBI Bank Limited | SBI | 0.18% | 13.54% |
| 22 | NIC Asia Bank Ltd. | NICA | 2.14% | 13.27% |
| 23 | NMB Bank Limited | NMB | 0.47% | 11.46% |
| 24 | Prabhu Bank Limited | PRVU | 10.78% | 10.94% |
| 25 | Prime Commercial Bank Ltd. | PCBL | 2.85% | 12.31% |
| 26 | Rastriya Banijya Bank | RBB | 3.53% | 10.19% |
| 27 | Sanima Bank Limited | SANIMA | 0.10% | 10.65% |
| 28 | Siddhartha Bank Limited | SBL | 2.30% | 11.30% |
| 29 | Standard Chartered Bank Limited | SCB | 0.18% | 13.01% |
| 30 | Sunrise Bank Limited | SRBL | 3.77% | 10.76% |
