Kathmandu. Many banks are under stress due to the provision of 100 percent provision for bad loans. Let’s not start the process of mortgage recovery, the borrower does not know how to repay the loan, let’s do it, as soon as the process starts, the loan should be made hundred percent provision. Many bankers are under stress due to this rule. Some CEOs openly expressed this tension in the meeting with the Finance Minister.
Banker Manoj Gyawali stressed on the need of revising the provision of provision for bad loans. Stating that the problem has arisen due to the regulatory system of provisioning bad loans, Gyawali claimed that it is time to change the policy.
Similarly, CEO of NIC Asia Bank, Sujit Shakya, said that the current provision should be amended. He also spoke emphatically on this issue. He expressed his disappointment that the banks are in trouble due to the current system.
According to the current system, as soon as the loan is bad, it should be made immediately available. As soon as the mortgage recovery process begins, the file should be kept in provision. Due to this, the main problem is that even though the number of people coming to repay the loan has increased after the mortgage recovery process, the provision of the loan should have been made. This is the reason why Kumari Bank instructs its employees to hide the files that have started the collateral recovery but have not been made during the inspection of the Rastra Bank. The email of this instruction was made public by BankingSansar.com some time ago. Ram Chandra Khanal, CEO of Kumari Bank, did not say much in the meeting with the Finance Minister.
Kumari is now a member of parliament from the family of the bank’s chairman. If anything, he didn’t say much in the meeting because he had a direct connection with the finance minister.
