Banks profit surges to Rs 49.21 billion in 9 months, Led by Nabil and Kumari Bank growth

KATHMANDU: Nepal’s commercial banking sector has reported a strong financial performance in the first nine months of the current fiscal year 2082/83 (mid-April 2026), with total net profits reaching Rs 49.21 billion.

According to the latest financial disclosures, 20 commercial banks operating in Nepal collectively posted a 19.29% year-on-year growth, translating to an increase of Rs 7.96 billion compared to the same period last fiscal year. In FY 2081/82, the sector had recorded Rs 41.25 billion in net profit.

Majority of Banks Post Profit Growth

By the end of Chaitra 2082, 13 banks reported an increase in profits, while 7 banks saw a decline, reflecting mixed performance amid tightening liquidity conditions, interest rate adjustments, and evolving regulatory oversight by Nepal Rastra Bank.

Among the standout performers, Kumari Bank registered the highest growth, with an extraordinary 1,361% surge in profit, reaching Rs 4.17 billion, compared to just Rs 28.58 million in the same period last year. This sharp rise signals a significant turnaround in the bank’s operational efficiency and asset quality.

Similarly, Rastriya Banijya Bank posted a 129.33% increase, earning Rs 2.76 billion, while Himalayan Bank grew by 52.49% to Rs 762.5 million.
Other notable performers include:

• Machhapuchchhre Bank: Up 50.42% to Rs 1.65 billion
• Sanima Bank: Up 42.22% to Rs 2.35 billion
• Prime Commercial Bank: Up 38.57% to Rs 3.08 billion
• Citizens Bank International: Up 35.82% to Rs 1.30 billion

Nabil Bank Remains Market Leader

Nabil Bank maintained its position as the most profitable commercial bank in Nepal, recording a 33.91% growth in net profit to reach Rs 6.76 billion, the highest in the industry. The bank had earned Rs 5.05 billion during the same period last year, reinforcing its leadership in Nepal’s banking and financial services sector.

Moderate Growth Across Other Banks

Several other banks also posted moderate gains:

• Laxmi Sunrise Bank: Up 23.36% to Rs 2.03 billion
• Nepal SBI Bank: Up 21.48% to Rs 1.46 billion
• Siddhartha Bank: Up 20.77% to Rs 2.01 billion
• NMB Bank: Up 13.25% to Rs 2.68 billion
• Nepal Bank Limited: Slight increase of 0.34% to Rs 2.79 billion

Profit Decline in Seven Banks

Despite overall sectoral growth, seven banks reported declining profits, indicating underlying stress in certain institutions.

Prabhu Bank recorded the steepest drop, with profits plunging 54.61% to Rs 851.5 million.

Other banks with declining earnings include:

• Nepal Investment Mega Bank (NIMB): Down 30.68% to Rs 3.14 billion
• Agricultural Development Bank: Down 24.42% to Rs 1.39 billion
• NIC Asia Bank: Down 10.49% to Rs 140.3 million
• Everest Bank: Down 3.71% to Rs 3.32 billion
• Standard Chartered Bank Nepal: Down 4.23% to Rs 2.08 billion
• Global IME Bank: Down 2.93% to Rs 4.40 billion

The overall profit growth highlights resilience in Nepal’s banking sector despite macroeconomic pressures, including credit slowdown, regulatory tightening, and evolving monetary policy. Analysts suggest that improved interest spreads, controlled non-performing loans, and digital banking expansion have supported profitability.

However, the uneven performance across banks signals the need for stronger risk management, capital efficiency, and governance reforms to ensure sustainable growth in Nepal’s financial system.

Net Profit of Commercial Banks (in Rs. 10,000s)