Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s commercial banking sector has witnessed a sharp decline in net profits in the first quarter of the current fiscal year 2082/83. According to the financial reports made public, the net profit of 20 commercial banks has decreased by 18.82%, amounting to a drop of Rs. 3.04 billion compared to the same period last year.
As of the end of Ashoj, commercial banks collectively earned Rs. 13.14 billion in net profit. However, during the same period last fiscal year, their profit was Rs. 16.18 billion. Bankers attribute the drop to rising operating costs, deterioration in loan quality, liquidity management challenges, weakening business sentiment, and slower credit expansion.
The ongoing “Gen-Z Movement,” adverse weather events such as floods and landslides, and weakened loan recovery have further intensified financial pressure on banks.
Net Profit of Commercial Banks (End of Ashoj, FY 2082/83)
Amount in NPR ‘000
Banks With Profit Growth
Only five banks recorded profit growth during the review period:
Rastriya Banijya Bank (+289.77%)
Global IME Bank (+22.91%)
Sanima Bank (+13.86%)
NIC Asia Bank (+10.52%)
Everest Bank (+4.56%)
Banks With Significant Profit Decline
15 banks experienced a decrease in profit, with some facing extreme declines:
Citizens Bank fell into loss
Agricultural Development Bank and NIMB faced over 96% decline
Prabhu Bank, Nepal SBI, and Laxmi Sunrise saw declines of above 38%
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