In the first two months of this fiscal year, Nepal’s commercial banks have shown mixed profit results. Out of 20 banks, 10 increased their profits while the other 10 saw a decline. Overall, the banking sector’s profit dropped by 6.15 percent.
Banks Losing Profit
Banks that recorded lower profits include Himalayan Bank, Nepal SBI Bank, Agricultural Development Bank, Prabhu Bank, Nabil Bank, NIC Asia Bank, Standard Chartered Bank, NMB Bank, Citizens Bank, and Kumari Bank. Various challenges affected their earnings.
Banks Gaining Profit
Siddhartha Bank, Nepal Bank, Machhapuchchhre Bank, Laxmi Sunrise Bank, Everest Bank, Prime Commercial Bank, Sanima Bank, Global IME Bank, and Rastriya Banijya Bank performed well, improving their profits through better market performance.
According to Nepal Rastra Bank, banks have collected deposits totaling Rs 74.55 trillion and provided loans worth Rs 56.33 trillion. The current Credit-to-Deposit (CD) ratio stands at 74.66 percent. Banks could still lend another Rs 11.43 trillion under the 90 percent lending rule. However, lower loan demand has impacted profits for many banks.
Bank Profits
- Global IME Bank: Rs 162.82 crore, down 3.97%
- Nabil Bank: Rs 132.71 crore, down 20.09%
- Nepal Investment Mega Bank: Rs 126.44 crore, down 15.51%
- Kumari Bank: Rs 105.68 crore, down 2.6%
- Prime Commercial Bank: Rs 104.67 crore, up 7.35%
- NMB Bank: Rs 103.09 crore, up 32.14%
- Everest Bank: Rs 91.28 crore, up 10.57%
- Rastriya Banijya Bank: Rs 88.55 crore, up 0.63%
- Siddhartha Bank: Rs 84.9 crore, up 40.18%
- Nepal Bank: Rs 84.28 crore, up 24.27%
- Sanima Bank: Rs 72.15 crore, up 4.68%
- Prabhu Bank: Rs 67.6 crore, down 25.98%
- Agricultural Development Bank: Rs 58.98 crore, down 33.5%
- Citizens Bank: Rs 55.76 crore, down 5.46%
- Standard Chartered Bank: Rs 53.22 crore, down 12.22%
- NIC Asia Bank: Rs 49.51 crore, down 14.26%
- Machhapuchchhre Bank: Rs 48.19 crore, up 22.8%
- Himalayan Bank: Rs 37.07 crore, down 68.26%
- Nepal SBI Bank: Rs 35.45 crore, down 33.59%
Loan demand is key to bank profits. Some banks have successfully used market opportunities to increase earnings. If banks can boost lending in the coming months, overall profits are likely to improve.
