Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s commercial banking sector has recorded robust profitability, with 20 commercial banks collectively earning over Rs 54.08 billion in net profit within the first 11 months of the current fiscal year 2081/82, according to data released by the Nepal Rastra Bank (NRB).
The central bank’s report, covering performance up to the end of Jestha (mid-June 2025), shows that the banking industry is recovering steadily despite lingering economic challenges and subdued credit demand. Among the top performers, Nabil Bank Limited has emerged as the highest profit-earning bank, reporting a net profit of Rs 6.40 billion.
Close behind, Global IME Bank secured the second-highest profit, earning Rs 6.03 billion during the 11-month period. Nepal Investment Mega Bank (NIMB) reported a net profit of Rs 5.68 billion, followed by Everest Bank with Rs 4.24 billion, Nepal Bank with Rs 3.07 billion, and NMB Bank at Rs 3.03 billion.
Mid-tier Banks Also Record Solid Profits
Several mid-tier commercial banks also posted healthy profits:
Prime Commercial Bank earned Rs 2.90 billion,
Standard Chartered Bank Nepal posted Rs 2.72 billion,
Laxmi Sunrise Bank reported Rs 2.57 billion,
Prabhu Bank recorded Rs 2.31 billion, and
Siddhartha Bank generated Rs 2.21 billion.
Other notable profit figures include:
Rastriya Banijya Bank (RBB) – Rs 2.20 billion,
Sanima Bank – Rs 2.15 billion,
Agricultural Development Bank (ADBL) – Rs 1.81 billion,
Nepal SBI Bank – Rs 1.54 billion,
Machhapuchchhre Bank – Rs 1.50 billion, and
Citizens Bank – Rs 1.41 billion.
Despite the strong performance of many banks, a few institutions showed relatively lower profit margins. Himalayan Bank, once a dominant player, posted only Rs 905.3 million in net profit. Similarly, NIC Asia Bank, often known for its aggressive expansion and digital banking services, earned Rs 829.7 million, while Kumari Bank posted the lowest among the group at Rs 481.9 million.
Banking Sector Resilience and Profitability Under Watch
The profitability figures signal a recovery trend in the Nepali banking sector after years of credit stagnation, political instability, and liquidity pressure. Improved interest spreads, declining credit costs, and increased digital transactions have all contributed to the sector’s earnings.
However, analysts caution that profitability is unevenly distributed, with the larger banks dominating the market share and earnings. Consolidation, digitalization, and non-performing loan (NPL) management remain critical challenges as the industry prepares for stricter international accounting standards and economic headwinds in FY 2082/83.
The NRB is expected to analyze these performance trends in its upcoming Financial Stability Report, which could influence future monetary policy, capital adequacy requirements, and credit flow mechanisms.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
