Kathmandu-Unaudited financial statements released by commercial banks for the second quarter of fiscal year 2025 to 26 show a rise in non performing loans across the banking sector.

By the first six months of the current fiscal year, the average NPL ratio of commercial banks reached 4.78 percent. In the same period of the previous fiscal year, the average stood at 4.32 percent.

Despite the increase in NPLs, the combined net profit of commercial banks rose by 11.51 percent year on year.

Out of 20 commercial banks, 15 reported an increase in NPLs, while the remaining banks recorded a slight decline.

During the review period, seven commercial banks posted NPL ratios above 5 percent. Himalayan Bank Limited recorded the highest ratio at 7.97 percent, up from 4.98 percent a year earlier.

Nepal Investment Mega Bank’s NPL ratio rose to 7.9 percent from 5.86 percent in the same period last year.

Prabhu Bank’s NPL ratio also increased, reaching 7.94 percent by the second quarter.

Citizens Bank International reported an NPL ratio of 6.86 percent. Prime Bank recorded 6.38 percent, while Laxmi Bank’s NPL ratio reached 5.5 percent.