Submit your Article

The Nepal Stock Exchange (NEPSE) gained 1. 13 points to close at 2, 545. 73 points on Thursday. 

The sensitive index, however, dropped by 0. 15 points to close at 440. 89 points.

A total of 7,605,584-unit shares of 329 companies were traded for Rs 3. 49 billion.

Meanwhile, Mabilung Energy Limited (MABEL) and Swet-Ganga Hydropower & Construction Limited (SGHC) were the top gainers today, with their price surging by 10. 00 percent. 

Likewise, Nepal Micro Insurance Company Limited (NMIC) was the top loser as its price fell by 4. 82 percent.

At the end of the day, total market capitalization stood at Rs 1. 44 trillion.

The average non-performing loan (NPL) ratio of development banks has climbed close to 10 percent in the first quarter of the current fiscal year 2025/26.

According to unaudited financial statements of the Class ‘B’ financial institution, the average NPL ratio reached 9.86 percent at mid-October. This marks a sharp rise of 1.98 percentage points from 7.89 percent in the same period of the previous fiscal year. 

The increase in NPL levels has been attributed to a slowdown in new credit disbursement and weak recovery of principal and interest from existing loans, which have together intensified pressure on the overall financial health of the banking industry.

The analysis is based on financial statements from 16 out of 17 development banks. The Karnali Development Bank, which the NRB recently placed under management control after declaring it troubled, has not published its first-quarter results.

Among the 16 development banks, 11 reported a rise in their NPL ratios compared to the previous fiscal year, while only five managed to reduce their bad loans.

Narayani Development Bank recorded the highest NPL ratio at 57.04 percent, signaling severe financial distress and poor loan quality. In contrast, Miteri Development Bank reported the lowest ratio of just 0.55 percent.

Narayani’s NPL level surged sharply from 34.81 percent in the same quarter of the previous fiscal year. Along with Narayani, two other development banks — Saptakoshi (11.5 percent) and Corporate (11.77 percent) — also have NPL levels in double digits.

Only five development banks — Miteri, Salpa, Sindhu, Excel, and Saptakoshi—managed to reduce their NPL ratios during the review quarter compared to the same period last year.

Likewise, 10 out of 16 development banks now have NPL levels exceeding 5 percent. The deterioration in loan quality comes amid prolonged economic slowdown over the past two years. This was further aggravated by the Gen Z protests in the second week of September which disrupted business activities and delayed loan repayments.

Loans and advances of banks and financial institutions are broadly categorized into performing and non performing loans, primarily based on past due period of interest or principal receivable. Pass and watchlist categories fall under performing loans whereas non performing loans include substandard, doubtful, loss and restructured/rescheduled loans.

Since banks are required to set aside higher provisioning for bad loans, higher NPL levels affect.

The price of gold has increased by Rs 5, 900 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 250, 200 per tola today. It was traded at Rs 244, 300 per tola on Wednesday.

Similarly, the silver is being traded at Rs 3, 345 per tola today.

The Nepal Stock Exchange (NEPSE) plunged by 20. 56 points to close at 2, 544 . 59 points on Wednesday.

Similarly, the sensitive index dropped by 3. 33 points to close at 441. 04 points.

A total of 8,404,616-unit shares of 321 companies were traded for Rs 3. 84 billion.

Meanwhile, Bhugol Energy Development Company Limited (BEDC) and Sagar Distillery Limited (SAGAR) were the top gainers today with their price surging by 10. 00 percent.

Likewise, Daramkhola Hydro Energy Limited (DHEL) was the top loser as its price fell by 8. 72 percent.

At the end of the day, the total market capitalization stood at Rs 1. 44 trillion.