Himal Press 
KATHMANDU: The non-banking assets held by commercial banks have increased by more than 11% in a year.
According to Nepal Rastra Bank (NRB), the combined non-banking assets of 20 commercial banks stood at Rs 47.70 billion by mid-September of the current fiscal year, up from Rs 42.91 billion in mid-September of the previous fiscal year.
Such assets increased at 14 of the 20 commercial banks during the review period, while five banks recorded a decline. Data for Standard Chartered Bank was not available.
Banks auction the assets pledged as collateral to recover their dues when borrowers fail to repay loans. If the assets cannot be sold through the auction process, banks may have to take ownership of them. Such properties, including land and buildings, are classified as non-banking assets.
The central bank’s data show Himalayan Bank held the largest amount of non-banking assets among commercial banks. The bank’s holdings increased by 9.74% to Rs 6.4 billion during the review period.
Nepal Investment Mega Bank (NIMB) was among the banks recording the sharpest increase in non-banking assets. Its holdings surged 53.43% to Rs 5.8639 billion in mid-September.
Global IME Bank, meanwhile, recorded a decline in its non-banking assets. The value of such assets held by the bank fell 6.75% to Rs 5.674 billion.
Prime Commercial Bank’s non-banking assets increased by 22.45% to Rs 4.9 billion, while NIC Asia Bank saw such assets decline by 8.72% to Rs 4.12 billion.
Rastriya Banijya Bank Ltd (RBBL) held the smallest amount of non-banking assets among commercial banks. The state-owned bank’s non-banking assets fell 2.97% to Rs 277.3 million.
