KATHMANDU, Jan 20: The net profit of commercial banks decreased in the second quarter of the current fiscal year 2024/25. As the provisions for non-performing loans and potential loan losses increase, it has impacted the profits of the banks.
According to the financial statements published by banks for the second quarter, the profit of 20 commercial banks has decreased by 4.36 percent compared to the same period of the previous fiscal year 2023/24. In the second quarter of the previous fiscal year, the 20 commercial banks earned a profit of Rs 28.68 billion, while in the same period of the current fiscal year, they earned a net profit of Rs 27.43 billion.
23 commercial banks earns net profit above Rs 1 billion
Out of the 20 commercial banks currently in operation, nine have seen a decline in profits, while 11 have increased their profits. As of the second quarter, Nabil Bank had the highest profit, which increased by 1.29 percent and reached Rs 3.24 billion. The second highest profit was recorded by Global IME Bank, with a 49.51 percent increase in profit, reaching Rs 3.5 billion. Nepal Investment Mega Bank’s profit also increased by 57 percent, reaching Rs 2.83 billion.
Similarly, Everest Bank's profit has increased by 21.11 percent to reach Rs 2.7 billion and NMB Bank's profit has increased by 45.60 percent, reaching Rs 2 billion.
According to the data of the second quarter, the profit of NIC Asia Bank has declined the most by 91.50 percent. In the second quarter, NIC Asia Bank earned a profit of Rs 155.2 million. During the same period last year, the bank earned a net profit of Rs 1.82 billion. Similarly, with the increase in non-performing loans, the loan loss provision has also increased at a high rate. Due to this, the profit of the bank has declined at a high rate.
Similarly, Kumari Bank's profit has decreased by 68.21 percent, reaching Rs 275.7 million. In the same period of the previous year, the bank had earned a profit of Rs 867.2 million. Fully owned by the Government of Nepal, Rastriya Banijya Bank’s profit has also dropped by 62.14 percent, amounting to Rs 763 million. Likewise, Siddhartha Bank's profit has decreased by 53.36 percent, reaching Rs 530 million.
