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The non-performing loans (NPL) of commercial banks surged to 4.86 percent of total lending in the first quarter of the fiscal year, reflecting growing stress in the banking sector amid sluggish economic activity and weak loan recovery.

NPL levels of nine banks have crossed five percent—a level considered concerning by industry standards. Himalayan Bank had the highest NPL of 7.39 percent at the end of first quarter. NIC Asia (6.99 percent), Kumari (6.98 percent), Nepal Investment Mega (6.63 percent), Prime Commercial (5.86 percent), Prabhu (5.78 percent), Nepal Bank (5.49 percent), Laxmi Sunrise (5.42 percent) are the other banks with NPL levels exceeding five percent of their total lending.

Everest Bank Ltd has a lowest NPL level of just 0.74 percent.  The unaudited financial results of the review quarter of 20 commercial banks shows 14 reported a rise in bad loans,  while only five managed to reduce their NPL ratio. One bank’s NPL level remained unchanged. 

The average NPL ratio stood at 4.44 percent at the end of the previous fiscal year in mid-July, when only three banks had bad loans above five percent. The deterioration in banks’ asset quality over the past three months signals the increasing difficulty that borrowers are facing in servicing debts.

Bankers attribute the rise in NPLs to reduced business confidence and the temporary disruption in credit and repayment activities due to the GenZ protests on September 8 and 9 when several industries and business houses were targeted.

Under Nepal Rastra Bank’s regulations, loans overdue for less than three months are categorized as performing, while those overdue for more than three months are classified as substandard, doubtful, or bad, depending on the duration of default. Banks are required to maintain higher loan-loss provisions for these categories. High provisioning has been affecting profitability of commercial banks in recent months.

The International Monetary Fund (IMF) has questioned the accuracy of NPL figures reported by banks, suspecting that some banks may have engaged in “evergreening”—the practice of issuing new loans to repay old ones to mask defaults. It set an independent audit of Nepali commercial banks as a condition for the Extended Credit Facility (ECF). As per the government’s commitment, Nepal Rastra Bank (NRB) has hired a Bangladeshi firm for the portfolio review of 10 largest commercial banks in the country.
Despite improved liquidity and a decline in interest rates, rising NPLs suggest that credit risks remain high and that banks may need to tighten their lending and recovery strategies to safeguard balance sheet stability.

The ‘Global Hunger Index–2025’ report has been unveiled in Karnali. 

Binod Kumar Shah, the Minister for Land Management, Agriculture, and Cooperatives of the Karnali Province, released the report. 

During the event held in Surkhet Birendranagar, organized by Local Initiatives for Biodiversity, Research and Development (LIBIRD) with support from Welthungerhilfe, Minister Shah emphasized that the report serves as a guide for identifying areas where Nepal, particularly Karnali, requires enhancements. 

He noted that the Karnali government has developed several initiatives, including the Food Sovereignty Act, Organic Agriculture Act, Agricultural Business Promotion Act, agricultural strategy, and a draft of the Pollination Strategy, all aimed at bolstering the Zero Hunger campaign. 

Minister Shah remarked, “Karnali has limited arable land. Nevertheless, the government is striving to cultivate high-value products from the limited land available.” 

He referenced a public report, indicating that the insights provided would aid the Karnali provincial government in formulating policies, which would be especially beneficial for agricultural workers and farmers. 

He stressed that the subjects outlined in this report should be mandatory study material for local government representatives, provincial secretaries, and agricultural specialists. 

Laxman Khatri, the program head of LIBIRD, pointed out that for the past seven years, LIBIRD has been releasing the Hunger Index report in Nepal, highlighting that while stunting remains a challenge, there have been positive trends in reducing wasting and child mortality rates. 

He asserted that if multi-dimensional nutrition-related initiatives are executed in accordance with the Sustainable Development Goals, hunger could potentially be eradicated.

“All three tiers of government must prioritize this effort,” he stated, “We are implementing agriculture and nutrition programmes in Karnali and Sudurpaschim to enhance food security.”

A boat carrying members of the Rohingya community from Myanmar has sunk near the Thai-Malaysian border, with hundreds missing, seven dead and 13 rescued, the Malaysian maritime agency said on Sunday, Reuters reported.

Rescuers were combing an area of 170 square nautical miles near Langkawi island on Saturday after a boat with 300 people on board left Myanmar's Rakhine state three days earlier, said the maritime agency head for the area Romli Mustafa.

Myanmar's impoverished Rakhine state has suffered years of conflict, hunger and ethnic violence mostly targeting the Rohingya Muslim minority community. Driven out of Rakhine state following a brutal 2017 military crackdown, some 1.3 million Rohingya live as refugees in densely-packed camps in neighbouring Bangladesh, according to Reuters.

Iran - especially its capital, Tehran - is facing an unprecedented drought this autumn, with rainfall at record lows and reservoirs nearly empty. Officials are pleading with citizens to conserve water as the crisis deepens, BBC reported.

President Masoud Pezeshkian has warned that if there is not enough rainfall soon, Tehran's water supply could be rationed. But he said that even rationing might not be enough to prevent a disaster.

"If rationing doesn't work," Pezeshkian said, "we may have to evacuate Tehran."

Typhoon Fung-wong has made landfall in the Philippines, where more than 900,000 people have been evacuated and two people have died, BBC reported.

The storm hit as a super typhoon, with sustained winds of around 185 km/h (115mph) and gusts of 230km/h (143mph).

The eye of the storm hit Aurora province in Luzon - the country's most populous island - at 21:10 local time (13:10 GMT). By 02:00, the storm weakened to a typhoon and was over La Union in western Luzon, according to BBC.

Indian Ambassador to Nepal Naveen Srivastava paid a courtesy call on Home Minister Om Prakash Aryal on Sunday. 

During the meeting, the two discussed matters related to peace and security for the elections announced for March 5, 2026.

At the meeting held at the Ministry of Home Affairs, the Home Minister informed the Indian Ambassador that maintaining peace and order, ending corruption, and ensuring good governance were the government’s top priorities. He said the government is working round the clock to hold the elections on the stipulated date in a peaceful and fear-free atmosphere.

According to Minister Aryal, the bilateral relations between Nepal and India will continue to remain strong. He added that India’s role in border security management is crucial before and during the elections, as both countries share an open border.

In response, Ambassador Srivastava expressed confidence that the March 5 elections to the House of Representatives in Nepal would be held successfully. 

He further stated that the friendly relations between the two countries would continue to progress smoothly and positively, adding that India was committed to playing a constructive role in ensuring the successful conduct of the election to the House of Representatives in Nepal.

The Nepal Stock Exchange (NEPSE) plunged by 30. 02 points to close at 2, 566. 09 points on Sunday. 

Similarly, the sensitive index dropped by 5. 90 points to close at 445. 62 points.

A total of 10,619,180-unit shares of 323 companies were traded for Rs 4. 90 billion.

Meanwhile, Daramkhola Hydro Energy Limited (DHEL) was the top gainer today with its price surging by 9. 99 percent.

Likewise, Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB) was the top loser as its price fell by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 1. 45 trillion.

Hundreds were missing on Nov 9 after a boat sank near the Thailand-Malaysia border, as 10 survivors and one body were recovered, the Malaysian maritime authority said, Reuters reported.

More victims might still be found at sea some three days after the sinking of the vessel, which left Buthidaung, Myanmar, with about 300 people on board, said First Admiral Romli Mustafa, the maritime authority director of the northern Malaysian states of Kedah and Perlis.

Among the survivors found in the waters off Langkawi were three Myanmar men, two Rohingya men and one Bangladeshi man, while the body was that of a Rohingya woman, state media Bernama said, citing Kedah police chief Adzli Abu Shah, according to Reuters.