Kathmandu: Nepal Rastra Bank (NRB) Governor Dr. Bishwanath Poudel has said the upcoming monetary policy will be designed to align closely with the government’s fiscal policy and support national economic priorities.

Speaking at a pre-monetary policy discussion organized by the Society of Economic Journalists of Nepal (SEJON) on Sunday, Governor Poudel emphasized that the central bank is committed to ensuring coordinated policy measures to uplift the economy, especially in priority sectors like agriculture, energy, and industry.

He acknowledged the growing concern over non-performing loans (NPLs) in these targeted sectors, stating, “Although we want to increase lending in agriculture and industry, NPLs remain high in these areas. But we cannot afford to neglect them. Even small entrepreneurs must be supported.”

Dr. Poudel remarked that loan assessments have evolved over time, moving beyond balance sheets to a more dynamic understanding of borrower behavior and sector-specific challenges.

Banks Call for Asset Management Company
Santosh Koirala, President of the Nepal Bankers Association (NBA), echoed these concerns, calling for the establishment of an asset management company to tackle the rising volume of bad loans and stagnant real estate auctions. He said that while collateral exists, the real problem lies in cash flow as goods remain unsold, hindering repayment capacity.

He also stressed that working capital loan norms have introduced discipline but highlighted challenges in policy coordination across federal, provincial, and local levels.

Aggressive Lending & Borrower Capacity
Upendra Prasad Paudyal, President of the Confederation of Banks and Financial Institutions Nepal (CBFIN), noted that financial institutions had been aggressive in lending to meet NRB’s mandatory lending ratios. However, rising NPAs (non-performing assets) indicate that the repayment capability of borrowers was not adequately assessed.

“The core issue now is improving borrowers’ repayment capacity,” Paudyal said, suggesting a comprehensive impact study on directed lending policies to better inform future financial strategies.

As the NRB prepares to announce its new monetary policy, stakeholders emphasized that sector-specific strategies, borrower evaluation, and policy alignment will be key to balancing growth stimulation with financial stability.