10th December 2024, Kathmandu
In the first four months of the current fiscal year, commercial banks in Nepal have collectively earned a total net profit of NPR 22.29 billion, as per data from Nepal Rastra Bank.
Nepal Bank Profit Nabil Leads
The profit represents a significant 37.74% increase compared to the previous month, demonstrating positive growth in the banking sector.
Strong Profit Growth Compared to Last Year
Commercial banks have shown remarkable growth in net profits, as the figure has risen sharply compared to the same period last year.
As of Ashoj (October), the banks had posted a net profit of NPR 16.18 billion. The increase highlights improved financial conditions across the banking sector.
Nabil Bank Tops the Profit Charts
Nabil Bank recorded the highest net profit among the commercial banks, earning NPR 2.69 billion by Kartik. This is a substantial increase from the NPR 2.16 billion net profit posted by Nabil in the same period last year.
The bank’s strong performance is attributed to its growing customer base and strategic financial decisions.
Other Banks Report Strong Earnings
Other commercial banks also reported solid profits. Global IME Bank earned NPR 2.11 billion, up from NPR 1.94 billion in the previous year. Nepal Investment Mega Bank earned NPR 1.82 billion, while Prime Commercial Bank posted a profit of NPR 1.62 billion. These figures underscore the overall positive trend within the banking industry.
Banks with Notable Profits in Kartik
Several other banks also earned notable profits by the end of Kartik:
Kumari Bank earned NPR 1.59 billion.
Everest Bank posted NPR 1.51 billion.
NMB Bank earned NPR 1.48 billion.
Prabhu Bank made NPR 1.23 billion in profit.
Standard Chartered Bank recorded NPR 1.13 billion.
Laxmi Sunrise Bank earned NPR 1.07 billion.
Nepal SBI Bank earned NPR 170 million.
Other banks such as Nepal Bank (NPR 938 million), Himalayan Bank (NPR 918 million), Machhapuchhre Bank (NPR 689 million), Siddhartha Bank (NPR 667 million), and Sanima Bank (NPR 651 million) also posted good results.
Some Banks Face Profit Decline
While many banks reported positive results, some institutions struggled. NIC Asia Bank earned NPR 388 million in profit, while Citizens Bank recorded NPR 438 million. These figures highlight that not all banks are experiencing growth equally.
Agricultural Development Bank Faces Loss
Agricultural Development Bank, however, reported a negative net profit of NPR 227 million. This marks a concerning decline for the bank, contrasting with the generally positive results in the commercial banking sector.
Conclusion: A Mixed Outlook for Nepal’s Banking Sector
Overall, the commercial banking sector in Nepal has demonstrated impressive growth, with many banks achieving higher profits compared to last year.
Nabil Bank’s strong performance sets it apart, but the struggles of the Agricultural Development Bank and other specialized banks show that the financial landscape remains varied. With continued growth, the banking sector’s performance will be a key driver of Nepal’s economy in the coming months.
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