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|
|3||NIC Asia Bank||202||151||57|
|5||Global IME Bank||169||123||98|
|6||Nepal Investment Bank||167||198||183|
|8||Agricultural Development Bank||158||136||103|
|12||Standard Chartered Bank||123||115||107|
|16||Nepal SBI Bank||100||102||91|
|20||Bank of Kathmandu||88||74||55|
|22||Nepal Bangladesh Bank||81||79||47|
|Total Profit (In ‘Crores’)||3275||3075||2346|
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.