NRB Estimates Decline in Returns of Commercial Banks

Apr 15, 2024 12:03 PM Merolagani

Nepal Rastra Bank (NRB) has said that the declining return on investment has provoked promoter shareholders of commercial banks to leave them.

In a supervision report published Sunday, the central bank mentioned due to an increase in bad debts of commercial banks, their profit has contracted. Due to the contraction their return on equity and return on assets of commercial banks has also declined. Consequently, the promoter shareholders of banks are leaving the institutions.

NRB said that there will be challenges to ensure and optimum level of income in such a scenario.

 

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