Net Profit of Commercial Banks in Nepal [With Ranking]

INVESTOPAPER

Until the second quarter of the current fiscal year i.e. 2076/77, Commercial banks of Nepal have earned Rs. 32.77 Arba in net profit. The total profit is almost 6.50 percent higher than the corresponding period of the last fiscal year. In the first six months of the fiscal year 2075/76, the banks had earned a combined total profit of Rs. 30.75 Arba. The growth rate in profit in the last fiscal year was almost 30 percent.

The slowdown in the growth rate of net profit is mainly due to the slow expansion of deposits as well as lending. With a higher base rate, the net interest income of some of the banks has declined. This has resulted in a fall in the net profit of banks such as Rastriya Banijya Bank, Nabil Bank, Nepal Investment Bank, Nepal Bank among others.

Banks like NIC Asia Bank, Global IME Bank, NMB Bank, etc have impressively improved their profitability as compared to the other banks.

RBB & Nabil at the top

Rastriya Banijya Bank (RBB) stands at the top among the 27 banks despite the fall in the net profit. RBB posted a profit of Rs. 221 cores in the first six months. In the same period last year, such profit stood at Rs. 241 crores.

Nabil Bank has also reported a decline in net profit from Rs. 218 crores last year to Rs. 204 crores until Poush ends this year. The bank occupies the second spot in terms of net profit.

NIC Asia Bank has miraculously achieved a higher growth rate in the last three years with the huge expansion of the business. The bank earned Rs. 202 crores in the first six months. Such profit stood at Rs. 151 crores and Rs. 57 crores in the corresponding period of the past two fiscal years.

Global IME Bank and NMB Bank, with the successful merger, have increased their profit to Rs. 169 crores and Rs. 164 crores respectively. Nepal Investment Bank, on the other hand, has fallen behind with Rs. 167 crores profit in the six months. In the same period of the fiscal year 2075/76, the bank had earned Rs. 198 crores in net profit.

Civil Bank, as always, remains at the bottom with the net profit of mere Rs. 32 crores. The profit has declined from the previous year’s Rs. 36 crores.

The ranking of the commercial banks of Nepal based on the net profit is presented in the table below:

Net Profit of Commercial Banks in Nepal [With Ranking]

                              Net Profit (in Rs. ‘crores’)
Rank Bank Q2, FY 2076/77 Q2, FY 2075/76 Q2, FY 2074/75
1 Rastriya Banijya Bank 221 241 178
2 Nabil Bank 204 218 184
3 NIC Asia Bank 202 151 57
4 Himalayan Bank 174 137 111
5 Global IME Bank 169 123 98
6 Nepal Investment Bank 167 198 183
7 NMB Bank 164 111 96
8 Agricultural Development Bank 158 136 103
9 Everest Bank 151 143 122
10 Nepal Bank 135 166 164
11 Prime Bank 130 106 79
12 Standard Chartered Bank 123 115 107
13 Sanima Bank 115 98 83
14 Prabhu Bank 109 104 60
15 Siddhartha Bank 103 104 87
16 Nepal SBI Bank 100 102 91
17 Mega Bank 95 73 39
18 Sunrise Bank 94 79 59
19 Laxmi Bank 90 72 65
20 Bank of Kathmandu 88 74 55
21 Machhapuchhre Bank 82 78 49
22 Nepal Bangladesh Bank 81 79 47
23 Kumari Bank 80 68 52
24 NCC Bank 76 74 53
25 Citizens Bank 69 77 63
26 Century Bank 65 52 37
27 Civil Bank 32 36 24
Total Profit (In ‘Crores’) 3275 3075 2346

Note:

The above figures are based on the unaudited second-quarter report published by the respective company. Investors are advised to take other things into consideration along with this report while making investment decisions. The numbers may vary after the final audit.

Investopaper

Investopaper is a financial website which provides news, articles, data, and reports related to business, finance and economics.

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!