Interests received till Shrawan 15 can be included in last fiscal’s earnings

ShareSansar, July 17

Nepal Rastra Bank has decided to give continuity to the provision that allows banks to show the interests earned at the end of fiscal year in Asar but are received by Shrawan 15 as last year’s earnings.  

Normally, banks collect interest from customers by Asar end, but if, for any reasons, the customers are able to pay the interest only by Shrawan 15, the banks can show the amount as last year’s earnings.

The NRB agreed to give continuity to the provision after banks urged that such provision would allow them to improve their financial statements by showing increased earnings.

Though this provision would help the banks to make their balance sheets look better, it does not absolve customers from the fines on delayed interest payments.