Rising provision, NPA threaten to cast shadow over banks’ profits
ShareSansar, Aug 22:
Though profits posted by most commercial banks for FY 2069/70 came as great news for the entire banking sector, the scenario might not be as rosy as it seems.
Most of the banks have set aside huge amount of provision for nonperforming assets (NPA) to make up for bad loans.
NPAs of KIST Bank (6.59%), ADBNL (5.72%) and RBB (5.31%) are above the acceptable level of 5%. The figures still signaled improvement for ADBNL and RBB from FY 2068/69, when the two banks had posted NPAs at a threatening 8.98% and 7.27%, respectively.
But in case of KIST, which had reported an NPA at 3.94% in the previous fiscal, the situation has gone worse.
Again, though the NPAs of other commercial banks are below the alarming 5% level, the fact most banks have posted an increase in their NPA compared to the fiscal year 2068/69 can become a source of concern.
Sanima Bank, Janta Bank, NSBI, Century Bank, Civil Bank, Everest Bank, Standard Chartered and Lumbini Bank have managed to maintain their NPAs at below 1 percent.
The table below will show that only a handful of commercial banks have succeeded in reducing their NPA compared to the last fiscal.
|
Provision (Rs. In ‘000’) |
NPA (%) |
|||
|
Bank’s Name |
4th Quarter Ending of FY 2069/70 |
4th Quarter Ending of FY 2068/69 |
4th Quarter Ending of FY 2069/70 |
4th Quarter Ending of FY 2068/69 |
|
ADBNL |
1,033,438 |
1,916,624 |
5.72% |
8.98% |
|
BOK |
112,274 |
95,537 |
1.50% |
2.30% |
|
C&T Bank |
93,207 |
31,579 |
1.33% |
- |
|
Century Bank |
69,454 |
30,149 |
0.49% |
0.00% |
|
Citizen Bank |
279,155 |
125,728 |
2.02% |
2.01% |
|
Civil Bank |
76,095 |
46,747 |
0.50% |
- |
|
Everest Bank |
98,807 |
251,188 |
0.62% |
0.84% |
|
GLOBAL IME |
331,842 |
197,703 |
1.64% |
1.54% |
|
Grand |
194,973 |
59,143 |
3.52% |
1.28% |
|
Himalayan Bank |
636,967 |
-46,659 |
2.19% |
2.09% |
|
Investment Bank |
836,015 |
743,724 |
1.91% |
3.32% |
|
Janta Bank |
54,939 |
31,570 |
0.23% |
0.00% |
|
KIST Bank |
720,072 |
0 |
6.59% |
3.94% |
|
Kumari Bank |
316,780 |
184,724 |
2.91% |
2.24% |
|
LAXMI Bank |
135,847 |
30,850 |
1.26% |
0.62% |
|
LUMBINI Bank |
114,578 |
48,092 |
0.86% |
0.47% |
|
Macha Bank |
446,478 |
7,471 |
2.83% |
2.84% |
|
Mega Bank |
152,236 |
66,122 |
2.27% |
0.49% |
|
NABIL Bank |
492,700 |
413,949 |
2.13% |
2.33% |
|
NCC Bank |
182,127 |
178,910 |
2.60% |
2.73% |
|
Nepal Bangladesh |
61,104 |
70,965 |
3.14% |
4.29% |
|
Nepal Bank |
364,339 |
252,058 |
4.53% |
5.58% |
|
NIC Asia Bank |
470,818 |
49,309 |
2.32% |
0.73% |
|
56,713 |
3.29% |
|||
|
NMB Bank |
130,832 |
279,327 |
1.80% |
2.45% |
|
NSBI |
128,041 |
78,012 |
0.37% |
0.54% |
|
Prime Bank |
268,519 |
105,401 |
2.23% |
0.47% |
|
RBB |
368,509 |
800,151 |
5.31% |
7.27% |
|
Sanima Bank |
57,846 |
52,835 |
0.03% |
0.48% |
|
Siddhartha Bank |
221,406 |
147,426 |
2.31% |
1.52% |
|
Standard Chartered |
110,125 |
208,206 |
0.77% |
0.78% |
|
Sunrise Bank |
366,681 |
289,936 |
3.74% |
3.52% |
|
Total/Average |
8,926,204 |
6,803,490 |
2.25% |
2.15% |
|
Growth (%) |
31.20% |
|
4.53% |
|
