NRB Hires Bangladeshi Firm to Review Loan Quality of 10 Major Banks

Nepal Rastra Bank (NRB) has appointed the Bangladeshi audit firm Howladar Yunus & Co. to carry out a comprehensive review of loan quality across 10 of Nepal’s largest commercial banks.

Following a competitive selection process, Howladar Yunus & Co. emerged as the sole firm meeting the technical criteria among six applicants. The central bank signed a contract worth Rs 6.25 million with the firm after opening its financial proposal, which had remained on hold due to legal proceedings.

The selection was conducted in accordance with Sub-Section 2 of Section 38 of the Public Procurement Act, 2063. A rival bidder, S. Subedi & Associates—part of a consortium including Mehra JKSS SSBDI—had previously challenged the process by filing a writ petition with the Supreme Court, which led to a temporary pause in proceedings.

However, on June 23, a joint bench of Justices Dr Manoj Kumar Sharma and Nripadhwoj Niraula lifted the interim stay, enabling NRB to move forward with the appointment. With the legal hurdle cleared, the central bank can now proceed with the long-awaited assessment aimed at gauging the financial health and credit discipline of key players in Nepal's banking sector.