NPL Data
NPLs in Asia: 2024 Data Analysis
This section draws on data from the report NPL Watch Asia: Monitoring Nonperforming Loans in Asia 2025.
In 2024, the total volume of NPLs across Asia reached approximately $700.19 billion, down marginally from $713.34 billion in 2023 (about 1.8% points) to a broadly stable credit environment across the region. However, the aggregate figure masks notable variation across subregions. East Asia remained the dominant contributor, led by the PRC and Japan, while South Asia and Central Asia recorded more pronounced increases, partly driven by loan book expansion. In contrast, NPL volumes declined overall in Southeast Asia, with improvements in Malaysia and Singapore offsetting pressures in Cambodia and Viet Nam.
Despite rising volumes in some markets, most economies maintained stable or improving NPL ratios, though persistent stress in countries like Bangladesh, Sri Lanka, and Viet Nam highlights the need for targeted reforms and stronger resolution frameworks.
Important note: Due to data limitations, not all countries within the region and subregions could be included. As a result, this analysis focus on the larger countries only—specifically those with a reported gross NPL stock exceeding $250 million as of 31 December 2024. Consequently, the total and sub-total figures presented are illustrative estimates, intended for discussion purposes only.
bn = billion, N/A = not applicable, NPL = nonperforming loan.
Notes: Original values are denominated in local currencies and converted to United States dollars ($), with exchange rates on relevant dates. The table only includes selected countries with the latest reported gross NPL stock of over $500 million as of 31 December 2022. Lower NPLs are shown in green and higher NPLs in dark brown on a graduated scale through the spectrum.
Sources: Statistics published by central banks; CEIC Data Company; and International Monetary Fund Financial Soundness Indicators. Data last accessed July 2025.
5-year context
Over the past 5 years, Asia’s NPL landscape has evolved significantly. NPLs rose temporarily in the pandemic shock in 2020 across many economies, particularly lower-income countries. However, from 2021 onward, a combination of regulatory forbearance, targeted fiscal support, and economic recovery helped stabilize asset quality. By 2024, several economies had returned to or improved upon their pre-pandemic NPL ratios, although vulnerabilities remain in certain sectors and jurisdictions.
| NPL Volume | NPL Ratio | |||||
|---|---|---|---|---|---|---|
| 2024($bln) | 2023($bln) | Variation | 2024 | 2023 | Variation | |
| East Asia | 520.35 | 525.43 | -0.97% | 1.4% | 1.5% | -0.1% |
| South Asia | 86.74 | 94.37 | -8.09% | 3.5% | 4.1% | -0.6% |
| Southeast Asia | 88.5 | 89.45 | -1.06% | 2.6% | 2.7% | -0.1% |
| Central Asia | 4.6 | 4.11 | 11.92% | 2.7% | 2.9% | -0.1% |
The subregion holds 11.8% of Asia’s NPLs volumes, with total NPL volume of $82.84 billion, down 8.8% from $90.79 billion in 2023. Correspondingly, the NPL ratio declined slightly, reaching 3.4% in 2024 from 3.9% in 2023. This likely reflects loan book expansion across the region’s economies, which is consistent with broader credit growth in countries like India.
India, the region’s largest economy, showed decreasing trend in NPL volume of $56.31 billion and an NPL ratio of 2.5%.
Bangladesh stood out as a regional outlier, with NPLs rising sharply from $15.80 billion in 2023 to $20.27 billion in 2024, a rise of 28.3 percentage points year-on-year. The country’s NPL ratio also climbed to 20.2% (from 9.0% in 2023), one of the highest in Asia. This contrasts significantly to its NPL ratio of 7.7% in 2020 and likely indicates structural weaknesses in credit underwriting and NPL resolution.
Sri Lanka’s NPL volume increased modestly to $4.58 billion, but its NPL ratio remains elevated at 12.9%, the highest in the sample of countries analyzed in Asia and up significantly from 4.5% in 2021. This suggests ongoing stress in the financial sector and structural issues requiring immediate attention.
In Nepal, NPL volume rose sharply (36.5 percentage points) in 2024 and the NPL ratio also increased (reaching 4.6%).
| Latest 2024 | Latest 2023 | Variation | ||||||
|---|---|---|---|---|---|---|---|---|
| ($bln) | % subtotal | % total | ($bln) | % subtotal | ($bln) | 2024-2023% | ||
| India | Lower Middle | 56.31 | 64.9% | 8.0% | 69.41 | 73.6% | -13.10 | -18.9% |
| Bangladesh | Lower Middle | 20.27 | 23.4% | 2.9% | 15.80 | 16.7% | 4.47 | 28.3% |
| Sri Lanka | Lower Middle | 4.58 | 5.3% | 0.7% | 4.35 | 4.6% | 0.23 | 5.3% |
| Nepal | Lower Middle | 1.68 | 1.9% | 0.2% | 1.23 | 1.3% | 0.45 | 36.6% |
| Pakistan | Lower Middle | 3.90 | 4.5% | 0.6% | 3.58 | 3.8% | 0.32 | 8.9% |
| Over the past 5 years | Variation | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | 2024-2023 (pp) | ||
| India | Lower Middle | 7.9% | 6.5% | 4.8% | 3.4% | 2.5% | -0.9% |
| Bangladesh | Lower Middle | 7.7% | 7.9% | 8.2% | 9.0% | 20.2% | 11.2% |
| Sri Lanka | Lower Middle | 4.9% | 4.5% | 12.0% | 13.1% | 12.9% | -0.2% |
| Nepal | Lower Middle | 1.7% | 1.2% | 2.4% | 3.8% | 4.6% | 0.8% |
| Pakistan | Lower Middle | 9.2% | 7.9% | 7.3% | 7.6% | 6.3% | -1.3% |