Borrowings Rise Significantly Across Nepal's Commercial Banks by Jestha End 2082

As per the financial data disclosed for the period ending Jestha 2082, borrowings by major commercial banks in Nepal have seen notable increases, underlining the continued reliance on debt instruments for funding and liquidity management. The breakdown reveals a diversified borrowing structure including interbank loans, foreign financial institutions, and domestic bond issuances.

Key Highlights:

The total borrowings are led by Agricultural Development Bank Limited (ADBL) at Rs. 31.69 billion, followed by Global IME Bank at Rs. 23.21 billion, and Prime Commercial Bank at Rs. 17.55 billion. Other major banks such as NMB, Sanima, and Prabhu also report significant borrowings of Rs. 16.95 billion, Rs. 12.02 billion, and Rs. 8.52 billion respectively.

Most of the borrowings across banks are sourced through bonds and securities, with NABIL, NIC Asia, and Kumari Bank each issuing over Rs. 9 billion in bonds. This indicates a strategic move by banks to secure longer-term capital to support lending and investment portfolios.

Breakdown of Borrowing Sources:

• NRB Borrowing: Minimal presence, with only a few institutions like SBL and Citizen Bank reporting small amounts (Rs. 391.92 million and Rs. 41.44 million respectively).

• Interbank Borrowing: Active primarily among SCBNL (Rs. 1 billion), HBL (Rs. 1.5 billion), MBL (Rs. 2.4 billion), and Prime Bank (Rs. 5.5 billion), reflecting short-term liquidity adjustments.

• Foreign Financial Institutions: NMB leads with Rs. 5.03 billion, followed by ADBL (Rs. 12.17 billion), and SBL (Rs. 5.77 billion), showcasing Nepalese banks’ growing exposure to international debt markets.

• Other Financial Institutions: ADBL again tops with Rs. 10.39 billion, while NSBI has Rs. 3.17 billion in this category.

Bond Dominance:

The largest contributor across the board remains bond and securities issuance. Notably:

• Kumari Bank: Rs. 14 billion

• NIC Asia: Rs. 12.75 billion

• NABIL: Rs. 9.21 billion

• ADBL: Rs. 20.48 billion

This reflects not just a diversification of liabilities, but also a shift towards more structured and long-term financing tools.

The borrowing pattern indicates increased credit expansion needs, possibly driven by a recovering economy and rising loan demands post-COVID. The dominance of bonds suggests banks are actively working to manage maturity mismatches and sustain capital adequacy.

The substantial foreign exposure of a few banks, however, raises the need for careful risk management amid global interest rate volatility.

Overall, the figures as of Jestha 2082 highlight a robust banking sector willing to leverage external and internal financial instruments to sustain operations and growth.