April 12: Banks and financial institutions (BFIs) are under pressure to prepare the third quarterly report at this period of year. But BFIs have not been able to provide any service except urgent services since a month due to the lockdown. Therefore, they are expecting decline in income and profit as their business has almost come to a halt.

“Banks have not been able to function properly as the customers are unable to visit the banks due to the lockdown. On one hand, our business has come to a complete halt while the government has extended the time for payment of dues till mid-July,” said Bhuvan Kumar Dahal, chairman of Nepal Bankers’ Association.

“The income and profit of BFIs will be directly affected this year as the government has announced 10 percent discount to anyone paying their dues and installment within April 13,” he added.

Dahal says banks have not been able to render their services effectively due to the lockdown. Its impact will be clearly reflected in the third quarterly report, he added.

BFIs have been encouraging the use of digital transaction during lockdown.

CEO of NMB Bank Sunil KC says banks transactions with industries, tourism sector, transportation entrepreneurs among others have been halted. They have not been able to collect deposits and have also not provided new loans. Therefore the  profit is expected to decline in the third quarterly report.

“Earlier, we used to follow up to collect loans. But that has not been possible since a month now,” said KC.

BFIs are discussing about preparing the third quarterly report and presenting them to the Nepal Rastra Bank. But they are not willing to make the report public this time.

However, NRB Spokesperson Gunakar Bhatta says BFIs cannot go against the law.

“There is a provision in the law according to which BFIs have to compulsorily publish their report on daily newspapers. BFIs cannot hide their information. They must maintain transparency,” he said.