Assets seized by banks and financial institutions have surged sharply over the past five years, reaching Rs 51 billion by mid-November 2025. According to Nepal Rastra Bank, these non-banking assets—mainly land and buildings acquired through loan defaults—stood at just Rs 10 billion in 2022. The average non-performing loan ratio has risen to 5.26 percent from 4.42 percent a year earlier. Commercial banks alone account for Rs 43.19 billion of such assets. Weak economic activity and prolonged uncertainty, including the impact of recent Gen Z protests, have dampened private sector confidence and made it difficult for banks to sell seized properties.
