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KATHMANDU, June 13: The average profit of commercial banks has decreased by 1.67 percent in the first 10 months of the current Fiscal Year (FY).
Due to weak loan recovery and an increase in bad loans causing loan losses, banks’ profits have declined. Commercial banks made a profit of Rs 47.79 billion by the end of Baisakh in the current FY. In the same period last year, their profit was Rs 48.60 billion.
Lending slows as banks focus on recovery of loans at fiscal yea...
During this period, the profits of 10 banks decreased while 10 banks recorded an increase. NIC Asia Bank experienced the largest profit decline, shrinking by 77.87 percent. Meanwhile, Nepal Bank's profit grew by 457.12 percent.
Although the Nepal Rastra Bank reduced the loan loss provision for performing loans to 1 percent in the current FY, banks’ profits have still been affected.
