Bad debt of commercial banks go up by over 1.5 percent

KATHMANDU, AUGUST 29: The bad debt of commercial banks has increased by 1.78 percent in the last fiscal year. The bad debt of 20 banks in 2022/23  averaged 2.98 percent while the same of 26 banks in 2021/22 had stood at 1.20 percent on average.  The increment of bad debt is attributed to the economic recession making it difficult for the banks to collect the regular installments of principal and interest of the credits floated by them.

Last year, they collected deposits worth Rs 5 trillion 86 billion 244 million and floated credits amounting to Rs 4 trillion 308 billion 990 million. During this period, the number of their branch offices stood at 5,049 branch offices and ATM counters numbered 4,465.

In the previous fiscal, 26 banks collected Rs 4 trillion 545 billion 157 million in deposits and released loans worth Rs 4 trillion 177 billion 812 million.  During this period,  there were 5,900 branch offices and 4,235 ATM counters belonging to them.