Nepal Rastra Bank Earns 145 Billion Profit in One Year

19th November 2025, Kathmandu

Nepal Rastra Bank (NRB), the central bank of Nepal, reported a massive net profit of NPR 172.3 billion in the fiscal year (FY) 2024/25, demonstrating a powerful surge in its financial performance.

NRB Earns Profit

This result represents a significant increase of 49.45 percent compared to the net profit of NPR 115.3 billion recorded in the previous fiscal year, FY 2023/24. The profit expansion, calculated at approximately NPR 57.45 billion, highlights the central bank’s robust financial position.

Analysis of Profit Trends and Financial Growth

The central bank’s profitability has been on a pronounced upward trajectory over recent fiscal years, reinforcing its crucial role in managing the nation’s financial and monetary affairs. This steady increase is driven primarily by successful foreign exchange rate management and returns from international investments.

The net profit figures recorded by NRB in preceding years illustrate this consistent growth:

In FY 2022/23, the net profit stood at NPR 87.60 billion.

In FY 2021/22, the profit was NPR 60.98 billion.

In FY 2020/21, the central bank reported a profit of NPR 30.47 billion.

The jump to NPR 172.3 billion in FY 2024/25 confirms the central bank’s strong capacity to generate income, often stemming from the valuation of its substantial foreign currency reserves.

Income Generation and Expenditure Allocation

The total operating income of the central bank for FY 2024/25 reached NPR 88.467 billion, with the majority of this revenue originating from interest-bearing activities.

Key Sources of Income

The largest contributor to the central bank’s operating revenue was its net interest income, which grew by 10.24 percent to NPR 87.309 billion during the fiscal year, up from NPR 79.316 billion in the previous year. This indicates strong returns on its investment portfolio, both domestic and foreign.

Other significant sources of income included:

Net other income which amounted to NPR 1.402 billion.

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Gold certificate earnings contributed NPR 537.15 million.

Miscellaneous other income stood at NPR 997.07 million.

Fee and commission income accounted for NPR 18.162 million.

Operational Expenditures

The total operating expenditure for the central bank was contained at NPR 7.984 billion, which is remarkably low in comparison to its massive income base, reflecting the non-commercial nature of its operations.

A major component of this expenditure was employee salaries, which totaled NPR 5.063 billion. This expense covers the entire compensation package for the central bank’s personnel throughout the fiscal year. Other notable expenditures included:

Administrative expenses at NPR 1.662 billion.

Currency printing costs at NPR 773.60 million, a necessary and recurring expense for maintaining the physical money supply in the economy.

Strong Financial Position and Government Support \

NRB maintains a financial position designed for stability and resilience, essential for executing its primary functions of monetary policy and financial sector regulation.

Capital and Reserves: The central bank has a paid-up capital of NPR 5 billion. More importantly, its total reserves now stand at a robust NPR 676.026 billion, providing a substantial capital buffer.

Total Financial Footprint: As of the end of Ashad (the close of the fiscal year), the central bank’s total assets and liabilities were recorded at a massive NPR 26.203 trillion.

Transfer to Government: In accordance with the Nepal Rastra Bank Act, a portion of the profit must be transferred to the Government of Nepal after making allocations to mandatory internal reserves. Following this protocol, NRB has decided to transfer a substantial amount of NPR 42 billion to the Government of Nepal, providing significant revenue support to the national treasury.

This strong financial performance is key to NRB’s ability to achieve its monetary policy objectives for FY 2025/25, which include targets to maintain inflation around five percent and achieve the government’s six percent economic growth target, primarily by directing credit flow towards productive sectors and ensuring adequate foreign exchange reserves.

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