Commercial Banks earn Rs 16.59 bn profit in two months, six banks cross billion mark

KATHMANDU: Nepal’s commercial banking sector has shown a strong profit performance in the first two months of the ongoing fiscal year 2082/83, despite a sluggish economy and slow credit growth. According to the data published by Nepal Rastra Bank (NRB), 20 commercial banks collectively recorded a net profit of Rs 16.59 billion by the end of Bhadra (mid-September).

The early profit trend indicates that the banking sector has started the fiscal year with stronger balance sheets, reflecting improved interest spreads, growing fee-based income, and moderated non-performing loans (NPLs) compared to the previous fiscal period.

Six Banks Earn Over Rs 1 Billion Each

Out of the total 20 commercial banks, six banks posted profits exceeding Rs 1 billion within just two months.
Leading the list, Global IME Bank recorded the highest net profit of Rs 1.62 billion, continuing its dominance in the banking sector. Nabil Bank followed with Rs 1.32 billion, while Nepal Investment Mega Bank (NIMB) secured the third position with Rs 1.26 billion.

Similarly, Kumari Bank reported Rs 1.05 billion, Prime Commercial Bank earned Rs 1.04 billion, and NMB Bank achieved Rs 1.03 billion in net profit during the two-month period. Analysts say these banks benefited from efficient cost management, higher remittance inflows, and steady interest margins on loans and deposits.

Mid-Tier Banks Also Show Solid Performance

Other banks also showed notable profitability despite tight liquidity and lower loan demand. Laxmi Sunrise Bank earned Rs 974.1 million, while Everest Bank made Rs 912.8 million. The state-owned Rastriya Banijya Bank (RBB) reported a healthy Rs 885.8 million, and Siddhartha Bank and Nepal Bank Limited posted Rs 849 million and Rs 842.8 million, respectively.

Likewise, Sanima Bank reported Rs 721.5 million, Prabhu Bank earned Rs 676 million, Agricultural Development Bank (ADBL) posted Rs 589.8 million, and Citizens Bank International made Rs 557.6 million.

Profit Gap Among Banks Narrows

Foreign and mid-sized banks also remained profitable. Standard Chartered Bank Nepal recorded Rs 532.2 million, NIC Asia Bank made Rs 495.1 million, Machhapuchhre Bank earned Rs 481.9 million, Himalayan Bank posted Rs 370.7 million, while Nepal SBI Bank reported Rs 354.5 million in net profit.

NRB’s data show that the profit gap between large and medium-tier banks is gradually narrowing as consolidation and digitalization have improved operational efficiency.

Interest Income, Remittances, and Digital Services Boost Margins

Bankers attribute the growth in net profit to stable deposit growth, improved digital transaction volumes, and remittance inflows that supported liquidity positions.
According to financial analysts, the high remittance inflow — reaching over Rs 258 billion in the first two months — has increased deposits in commercial banks, allowing them to manage their interest rate spreads efficiently.

Additionally, several banks have increased their non-interest income through service fees, card payments, digital wallets, and cross-border payment services. These auxiliary revenues have played a crucial role in offsetting the effects of slow credit expansion due to a weak investment climate.

Sector Outlook: Moderate Growth Ahead

Banking experts say the early trend indicates a stable financial year ahead but warn that long-term sustainability depends on credit demand and monetary policy relaxation. If the Nepal Rastra Bank gradually lowers policy rates and encourages productive lending, profits could further rise by the end of the fiscal year.

However, risks such as high operational costs, limited private-sector investment, and slow project execution may constrain overall profitability growth.

The banking sector, which had faced liquidity pressure and declining lending in the last fiscal year, seems to be regaining momentum — signaling cautious optimism for Nepal’s broader financial and economic stability.