Loan portfolio review exposes malpractices in Nepali banks: NRB

KATHMANDU, May 19: A recent loan portfolio review commissioned by Nepal Rastra Bank (NRB) has revealed widespread malpractices in the country’s major commercial banks, raising concerns over loan recovery processes, asset quality, and regulatory compliance. The review found that while banks continue to report capital adequacy ratios above regulatory thresholds, many have engaged in practices such as evergreening loans, overvaluing collateral, and under-provisioning for bad debt to inflate their financial performance.