Global Bank Leads Non-Banking Assets Ranking Among Nepali Financial Institutions

Kathmandu, Nepal — A recent report on non-banking assets of Nepali banks and financial institutions (BFIs) has revealed significant disparities among institutions in terms of their non-banking assets (NBAs). The data, measured in millions of Nepalese Rupees (Rs), highlights the financial landscape and varying asset management strategies employed by these institutions.

Key Findings:

1. Global Bank Leads the Pack
   Global Bank stands at the top of the list with Rs 5,131.33 million in non-banking assets. This positions the bank as a leader in leveraging and managing assets outside traditional banking operations.

2. NIC Asia Bank and Himalayan Bank Follow
   NIC Asia Bank ranks second with Rs 4,145.26 million, followed by Himalayan Bank Limited (HBL), which holds Rs 3,911.31 million in non-banking assets.

3. NMB Bank and NABIL Among the Top Performers
   NMB Bank and NABIL Bank also report substantial NBAs at Rs 3,039.46 million and Rs 2,702.22 million, respectively. These figures underscore their significant contributions to the sector.

4. Small Players in the Market
   At the other end of the spectrum, Nepal Bank Limited (NBL) and Rastriya Banijya Bank (RBB) reported the lowest non-banking assets, amounting to Rs 204.11 million and Rs 297.65 million, respectively.

5. Other Mid-Level Performers
   Kumari Bank (Rs 2,667.38 million) and Laxmi Bank (Rs 1,598.81 million) are positioned as mid-level players, reflecting moderate levels of non-banking assets. Banks like Citizen Bank (Rs 809.70 million) and Sanima Bank (Rs 708.58 million) also maintained respectable positions in the rankings.

6. Anomalies in Data
   Standard Chartered Bank Nepal Limited (SCBNL) stands out as an anomaly, as it reported no significant data on non-banking assets for this report.

Understanding Non-Banking Assets

Non-banking assets typically consist of assets acquired by banks through loan defaults, real estate, or other recoverable properties. While these assets are not part of a bank’s core banking activities, they reflect a financial institution's ability to recover and manage defaults effectively.

Implications for the Banking Sector

• Global Bank's Leading Position: The substantial amount of NBAs highlights the bank's capacity to handle large recoverable assets and engage in diverse asset management activities.

• Divergence Among BFIs: The gap between leading institutions and smaller players like NBL and RBB indicates varying levels of financial management and asset recovery capabilities.

• Sectoral Challenges: The disparity in NBAs across institutions reflects ongoing challenges in Nepal's banking sector, including non-performing loans (NPLs) and asset recovery issues.