Government to Establish Asset Management Company for NPLs, Announces Launch of Neo Bank

Kathmandu, May 29 – The Government of Nepal has announced the establishment of an Asset Management Company to manage non-performing loans (NPLs) in the banking and financial sector.

Presenting the budget for fiscal year 2082/83, Finance Minister Bishnu Prasad Paudel stated that the company will be set up to ensure financial sector stability and risk mitigation.

The Asset Management Company is expected to handle defaulted loans, manage distressed assets, and facilitate restructuring and resolution processes for banks and financial institutions.

In addition, Minister Paudel also announced the establishment of a Neo Bank, a fully digital bank that will offer branchless banking services, promote digital transactions, and improve financial access across the country.

These initiatives are aimed at enhancing the efficiency, transparency, and digital transformation of Nepal’s financial system.