KATHMANDU: Non-banking assets held by Nepal’s commercial banks rose sharply in the first 11 months of the current fiscal year, reflecting continued stress in loan recovery and collateral management.

According to Nepal Rastra Bank (NRB), the country’s 20 commercial banks held Rs 46.8 billion in non-banking assets as of mid-June, up 18.9 percent or Rs 8.1 billion from Rs 38.79 billion during the same period last year.

Himalayan Bank held the largest stock of non-banking assets at Rs 6.24 billion, followed by Global IME Bank with Rs 5.89 billion, Nepal Investment Mega Bank with Rs 4.70 billion, and NIC Asia Bank with Rs 4.18 billion.

Other banks with sizeable non-banking assets included Nabil Bank (Rs 3.39 billion), Kumari Bank (Rs 2.45 billion), Laxmi Sunrise Bank (Rs 2.44 billion), NMB Bank (Rs 2.02 billion), Prabhu Bank (Rs 1.97 billion), Citizens Bank International (Rs 1.58 billion), Prime Commercial Bank (Rs 1.58 billion), Agricultural Development Bank (Rs 1.39 billion) and Nepal SBI Bank (Rs 1.36 billion).

Meanwhile, Sanima Bank reported Rs 1.22 billion, Siddhartha Bank Rs 867 million, Machhapuchchhre Bank Rs 651 million, Everest Bank Rs 516 million, Rastriya Banijya Bank Rs 310 million, and Nepal Bank Rs 234 million in non-banking assets.

Among all commercial banks, Standard Chartered Bank Nepal was the only institution reporting zero non-banking assets during the review period.

Non-banking assets primarily consist of collateral and properties acquired by banks after borrowers default on loans. A sustained increase in such assets is generally viewed as an indicator of persistent stress in loan recovery and weakness in the banking sector’s credit quality.