Bank Interest Rates

NPA refers to Non-Performing Assets, also known as Non-performing loans (NPL). This is one of the most critical indicators of financial health and asset quality of banks in Nepal and worldwide. With this indicator the one can measure the effectiveness of a bank’s core business: lending money and getting it back.

In the context of Nepal, NPA is commonly known as the NPL (Non-Performing Loans). As per the recent trends, the average NPL ratio of Nepali commercial banks has been rising significantly over the last two fiscal years due to various economic challenges. So, here’s the NPA of each bank for your information.

NPA of BFIs

This indicator clearly shows the effectiveness of Nepali Bank’s core business in lending money and getting it back. Also, it is affected by various economic challenges, including slower economic growth, liquidity and higher interest rates.