Loan Portfolio Review of 10 Major Commercial Banks Completed, Bangladeshi Auditors Conduct In-Depth Assessment

The loan portfolio review of Nepal’s 10 major commercial banks has been completed. The initiative, led by Nepal Rastra Bank, was carried out by the Bangladeshi audit firm Howlader Yunus & Co., which visited Nepal to conduct on-site examinations of the selected banks. The review process followed Nepal’s commitment under the International Monetary Fund’s Extended Credit Facility (ECF) to assess the quality of assets within the banking sector.

The audit team, which also included representatives from Nepal Rastra Bank, conducted detailed field inspections at each bank. The reviewers examined loan files, tested core banking systems, assessed the actual progress of financed projects, and evaluated repayment mechanisms. According to sources, the assessment was based on nearly two dozen indicators designed to measure the overall quality of the banks’ assets.

Based on the financial statements of the previous fiscal year’s end (Chaitra), banks with relatively large loan portfolios—Global IME Bank, Nabil Bank, Nepal Investment Mega Bank, Rastriya Banijya Bank, Kumari Bank, Laxmi Sunrise Bank, Prabhu Bank, Himalayan Bank, NMB Bank, and NIC Asia Bank—were included in the review sample. Key focuses of the evaluation included the proper utilization of disbursed loans, the operational status of borrower projects, and the effectiveness of repayment systems.

The audit report is expected to be submitted to Nepal Rastra Bank within a few days. If the review identifies any discrepancies or concerns within specific loan files, the central bank will provide the respective institution an opportunity for clarification and explanation. Officials expect that the findings will offer a clearer picture of asset quality and strengthen risk management practices across Nepal’s banking industry.