Managing Non-performing Loans

Since the outbreak of the COVID-19 pandemic, banks in Nepal have visibly faced challenges. The pandemic has impacted the economy as a whole with the result that the economic status of the people has gone downhill. As in other sectors, the banking sector has also taken a knock, especially in terms of lending. Lending is the sector where banks make heavy investments and on which their survival depends. Banks also make money through other segments such as letters of credit, guarantees, documentary credits and treasury transactions.