Banks Need to Focus on Loan Quality Over Expansion, Says Siddhartha Bank CEO

Despite increasing liquidity and declining interest rates, loan disbursement by banks remains sluggish. Meanwhile, the volume of non-performing loans has risen as some loans have become unrecoverable. Alongside the expansion of digital transactions, security challenges have also intensified. Addressing these issues, Siddhartha Bank CEO Rameshwar Prasad Basyal stated, “Digital banking has gained widespread acceptance. Banks are increasingly emphasizing digital banking services.”

Basyal further elaborated, “Nepal’s youth represent the most dynamic and aware customer segment of digital banking services. They require faster, safer, and simpler services accessible anytime and anywhere, instead of visiting branches for traditional banking.” In this context, Siddhartha Bank considers digital banking not merely as an alternative platform but as a fundamental requirement for sustainable banking in the evolving financial environment.

The bank has developed, expanded, and continually improved various customer-friendly services such as Easy Bank, mobile banking, internet banking, QR code payments, online account opening facilities, card services, and digital payment options. He emphasized, “Our goal is not only to increase digital transactions but to make the daily financial lives of young people more straightforward, secure, and productive.”

Basyal also pointed out, “The success of digital solutions cannot be measured merely by app downloads or transaction volumes.” He added, “Customer situations may vary based on their business models, loan structures, cash flows, and management capacities.” Accordingly, Siddhartha Bank views financial inclusion broadly—not limited to the number of accounts opened but encompassing a wider perspective.