Commercial Banks Report Rs 38 Billion Profit in First Seven Months of Fiscal Year Amid Mixed Performance

Kathmandu. Commercial banks earned a profit of 38 billion rupees in the first seven months of the current fiscal year. According to Nepal Rastra Bank, 20 commercial banks earned a profit of NPR 38.0166 billion by the end of Magh.

This profit is 5.40 percent less than the profit earned by the banks during the same period last year. Nepal Rastra Bank data shows that these banks earned NPR 38.0879 billion by the end of Magh last year.

Despite overall growth, the overall performance of the banks has been fluctuating. During this period, while 10 commercial banks saw an increase in profit, the remaining 10 banks experienced a decline in profit. Banks showing profit improvement saw increases ranging from 6.62 percent to 329 percent, while banks with declining profits saw decreases ranging from 5.17 percent to 84.73 percent.

• Profit Earning Status

Based on the data for the first seven months of the current fiscal year, Nabil Bank has succeeded in earning the highest profit. Nabil kept itself in the leading position by earning a profit of NPR 5.38 billion during this period. 

Similarly, Global IME Bank also performed excellently, securing the second position by earning a profit of NPR 4.14 billion. Kumari Bank earned NPR 3.17 billion and Everest Bank earned NPR 2.50 billion.

Other large banks earning above two billion rupees include Prime Bank with NPR 2.39 billion, Nepal Investment Bank with NPR 2.19 billion, and NMB Bank with NPR 2.13 billion.

Likewise, there is a significant number of banks earning less than two billion rupees in profit. Rastriya Banijya Bank earned NPR 1.88 billion, Nepal Bank earned NPR 1.85 billion, Sanima Bank earned NPR 1.73 billion, and Siddhartha Bank earned NPR 1.70 billion.

Furthermore, Standard Chartered Bank earned NPR 1.56 billion, Himalayan Bank NPR 1.39 billion, Prabhu Bank NPR 1.36 billion, Machhapuchhre Bank NPR 1.24 billion, and Nepal SBI Bank NPR 1.20 billion.

Banks earning less than one billion rupees in profit include Agriculture Development Bank with NPR 859.9 million, Citizen Bank with NPR 576.9 million, and NIC Asia Bank with NPR 443.0 million. The lowest profit during this period was recorded by Laxmi Bank, which managed to earn only NPR 242.7 million.

• Who Increased and Who Decreased?

Looking at the profit growth status of the banks, Kumari Bank appears to have shown miraculous progress, surpassing all others. Compared to the previous year, Kumari Bank's profit increased the most by 329.87 percent. 

Following this, Siddhartha Bank's profit nearly doubled, increasing by 99.57 percent. Rastriya Banijya Bank brought an improvement of 52.46 percent in its profit, while Nabil Bank increased its profit by 34.21 percent. 

Similarly, Machhapuchhre Bank's profit increased by 28.63 percent, Sanima's by 26.28 percent, and Nepal SBI Bank's by 10.61 percent. Banks that achieved positive growth in profit include Prime at 9.81 percent, Agriculture Development Bank at 7.49 percent, and Global IME at 6.62 percent. 

On the other hand, the profits of 10 commercial banks declined compared to the previous year. The largest decline among profit-losing banks was seen in Laxmi Bank, whose profit dropped sharply by 84.73 percent. 

Similarly, Nepal Investment Bank saw a contraction in profit by 36.18 percent and Citizens Bank by 36.09 percent. Prabhu Bank's profit fell by 25.66 percent and Nepal Bank's by 24.40 percent. 

Other banks experiencing profit decline include Standard Chartered Bank by 15.15 percent, NMB by 9.12 percent, Himalayan by 5.17 percent, NIC Asia by 4.66 percent, and Everest Bank by 2.66 percent.