Nabil Bank CEO Manoj Gyawali has stated that delayed payments from the government to construction businesses are creating pressure on Nepal’s banking sector. Speaking at a discussion on monetary policy at the House of Representatives’ Finance Committee, he warned that stalled projects and delayed payments could increase non-performing loans (NPLs). He said banks have around Rs 500 billion invested in the construction sector, making the issue a major concern for financial stability.

Gyawali urged the government to facilitate payments through monetary policy and other mechanisms, suggesting timely payment or alternative arrangements such as contract transfers. He also emphasized that borrowers should be treated differently based on their circumstances, with strict action against intentional defaulters while providing support and restructuring opportunities to businesses facing genuine financial difficulties.