Loan Portfolio Review of 10 Commercial Banks Completed

The loan portfolio review of Nepal’s 10 major commercial banks has been completed. As part of the reform measures under the Extended Credit Facility (ECF) program with the International Monetary Fund (IMF), a team from the Bangladeshi audit firm Howladar Yunus & Co. visited Nepal and carried out an on-site assessment.

During the review, the team conducted a detailed examination of the banks’ loan files, core banking systems, status of project financing, and loan repayment processes, according to Nepal Rastra Bank (NRB). Officials from NRB were also part of the joint inspection team. The assessment was carried out using nearly two and a half dozen indicators related to asset quality.

The review covered 10 commercial banks with high loan exposure— Global IME, Nabil, Nepal Investment Mega, Rastriya Banijya, Kumari, Laxmi Sunrise, Prabhu, Himalayan, NMB, and NIC Asia—evaluating the overall quality of their loan portfolios.

According to NRB, if any weaknesses or irregularities are found in specific loan files, the concerned banks will be given adequate opportunity for clarification and hearing. With the initial phase of the review now complete, the team is expected to submit the official report to Nepal Rastra Bank within a few days.

This portfolio review is regarded as an important step toward enhancing transparency, risk management, and asset quality within Nepal’s banking sector.