Highest Profit Earning Banks in Nepal

4th, June 2020

We can easily predict that most businesses have been financially affected including commercial banks of Nepal due to Coronavirus. Not to mention, the nation-wide lockdown has disrupted any financial cash flow. Amid the pandemic, we’ve come up with the list of highest profit earning banks in Nepal in 2020 so far.

As we are entering the fourth quarter of the fiscal year (FY) 2076/2077, we have compiled the list of banks which have made profit till the third quarter of this FY.

Below is the quick list of Top Highest Profit Earning Banks in Nepal in 2020

Highest Profit Earning Banks in Nepal by the end of 3rd Quarter of FY 76/77

Ranking Name of the Bank Net Profit in Arba
1. Nabil Bank Ltd. 3.16
2. Global IME Bank Ltd. 3.15
3. Rastriya Banijya Bank Ltd. 3.04
4. Nepal Investment Bank Ltd. 2.5
5. NIC ASIA Bank Ltd. 2.5
6. Everest Bank Ltd. 2.35
7. Himalayan Bank Ltd. 2.32
8. Agriculture Development Bank Ltd. 2.04
9. Prime Commercial Bank Ltd. 2.03
10. Nepal Bank Ltd. 2
11. NMB Bank Ltd. 1.88
12. Standard Chartered Bank Ltd. 1.8
13. Sanima Bank Ltd. 1.62
14. Prabhu Bank Ltd. 1.46
15. Mega Bank Ltd. 1.45
16. Nepal SBI Bank Ltd. 1.44
17. Siddartha Bank Ltd 1.34
18. Machhapuchhre Bank Ltd. 1.17
19. NCC Bank Ltd. 1.17
20. Citizen International Bank Ltd. 1.09
21. Laxmi Bank Ltd. 1.09
22. Kumari Bank Ltd. 1.01
23. Nepal Bangladesh Bank Ltd. 1
24. Sunrise Bank Ltd. 0.94
25. Century Bank Ltd. 0.92
26. Bank of Kathmandu Ltd. 0.87
27. Civil Bank Ltd. 0.36

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To further explain, the commercial banks of Nepal have earned Rs. 45.70 Arba in Net Profit during the current fiscal year. Similarly, in the last fiscal year, they made a Net Profit of Rs. 44.63 Arba in the first nine months. It is an indication that there has only been an increment by 2.50 percent in Net Profit compared to the fiscal year of 2076/2077.

Due to the impact of the lockdown, the commercial banks have reported a decline in their net interest income. Therefore, resulting in the fall of Net Profit of Banks such as:

  • Rastriya Banijya Bank,
  • Nabil Bank,
  • Nepal Investment Bank,
  • Nepal Bank among others.

Meanwhile, Banks such as:

  • Global IME Bank,
  • Prime Commercial Bank,
  • NMB Bank,
  • Mega Bank etc. seem to improve their profit margin compared to other banks.

Banks in the Billionaire’s Club

Despite the decline in Net Profit, Nabil Bank managed to top the list beating all other 26 commercial banks. Nabil Bank Ltd made a Net Profit of Rs. 3.16 Arba in the nine months of the current fiscal year. However, the bank made a Net Profit of Rs. 3.19 Arba during the nine months of the previous fiscal year.

Joining the club is Global IME Bank with a solid Net Profit of 3.15 Arba till the end of Chaitra 2077. After merging with Janata Bank, Global IME Bank successfully reserved its place on the second spot of highest profit earning banks in Nepal in 2020.

Following on the 3rd spot is the Rastriya Banjiya Bank with Rs. 3.04 Arba in Net Profit. Previously in the same period, the bank made a Net Profit of Rs. 3.50 Arba.

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Banks with Growth in Net Profit

15 commercial banks are managing their growth margin despite the economic crisis. Their performance led them to remain in the highest profit earning banks in Nepal in 2020.

Global IME, the second-highest profit earning bank in Nepal in 2020 has the highest rise in profit by 68.46 percent. This includes the profit of Janata Bank as well.

After the merger with Janata Bank, the bank’s profit scaled from 1.87 Arba to 3.15 Arba this year.

Likewise, Century Bank also has an impressive record of nearly 50% growth compared with last year’s profit. In the same period last year, the bank made a profit of 61.06 crores. On Chaitra 2076, the profit was 91.57 crores.

Banks facing a decline in Net Profit

On the other hand, Bank of Kathmandu took a big hit this year. Bank of Kathmandu earned a lower Rs. 87.34 crores in the current FY. Last year, the profit stood at Rs. 1.20 Arba in the same quarter-end.

Similarly, Civil Bank and Sunrise Bank also suffer from a decline in growth. Civil Bank’s earning in the previous year’s quarter was Rs 49.38 crores. This year, its profit earning is Rs. 36.05 crores.

Sunrise Bank, which made a profit of 1.23 Arba last Chaitra 2075 quarter, made Rs. 93.52 crores this Chaitra 2076 quarter.

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