Kathmandu: In the first month (Shrawan) of the current fiscal year, banks and financial institutions in Nepal earned a total profit of Rs 9.37 billion.
The statistics were released by the Banks and Financial Institutions Regulation Department under Nepal Rastra Bank (NRB).
In the last fiscal year 2024/25, banks had recorded a total profit of Rs 78.80 billion. In Shrawan of 2081 (July-August 2024), they had reported Rs 10.16 billion in profit, according to NRB.
While interest income has risen, banks’ interest expenses have also declined. However, due to excess liquidity, intense competition among banks has narrowed the spread rate (the gap between the weighted average interest rate on deposits and loans). At the same time, the cost of holding excess liquidity has also burdened the banks.
Although NRB has been absorbing liquidity, the absorption is happening at rates lower than banks’ cost of deposits. As a result, interest income has fallen more sharply compared to interest expenses.
Declining net interest income along with rising operating costs have caused profits in Shrawan of the current fiscal year to fall compared to last year.
NRB data shows that, compared to the end of Ashad, banks’ deposits fell by Rs 63 billion and loans by Rs 18 billion in Shrawan.
In Shrawan of the previous fiscal year, deposits had declined by Rs 57 billion but loans had increased by Rs 3 billion. With a paid-up capital of Rs 444.58 billion and a total capital fund of Rs 840 billion, the banks posted these profits.
In Shrawan, commercial banks earned Rs 8.38 billion, development banks around Rs 820 million, and finance companies around Rs 180 million in profits, according to NRB.
Non-banking assets of banks also rose above Rs 50 billion. By the end of Shrawan, non-banking assets reached Rs 50.56 billion, NRB reported.
How much profit did each bank earn?
Global IME Bank: Rs 784.5 million
Nabil Bank: Rs 716.4 million
Nepal Investment Mega Bank: Rs 634.2 million
Rastriya Banijya Bank: Rs 558.3 million
Nepal Bank: Rs 552.7 million
Prime Bank: Rs 505 million
Kumari Bank: Rs 492.4 million
Everest Bank: Rs 483.9 million
NMB Bank: Rs 466.8 million
Himalayan Bank: Rs 408.9 million
Siddhartha Bank: Rs 401.4 million
Laxmi Sunrise Bank: Rs 394.5 million
Sanima Bank: Rs 390.3 million
NIC Asia Bank: Rs 319.4 million
Prabhu Bank: Rs 302.3 million
Citizens Bank: Rs 272.5 million
Standard Chartered Bank Nepal: Rs 271.6 million
Machhapuchhre Bank: Rs 265.2 million
Nepal SBI Bank: Rs 158.9 million
Agriculture Development Bank: Rs 3.8 million
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