Banks and financial institutions have started making their financial distributions public. The financial statements of the banks, which were released a little later than last year, have shown that the banks' profits have shrunk. Due to the lockdown caused by Covid-19, economic activities could not take place and this has a direct impact on the profit earned by the banks.

 With the decline in banks' profits, the dividends received by shareholders will shrink and some banks will not be able to pay dividends this year.

Profits of Nabil Bank, Citizens Bank International, Bank and Nepal Bank, which made their financial statements public, have also declined. Even Siddhartha Bank, Bank of Kathmandu has not been able to earn as much profit as last year. The situation is similar not only for commercial banks but also for development banks that have made their financial statements public.

Nabil Bank's fourth-quarter unrevised financial statement showed a 15.83 percent decline in profit to Rs 967 crore from the previous year. The bank has earned Rs 3.56 billion in the last fiscal year. The bank's profit was Rs 4.23 billion in the previous fiscal year.

Citizens Bank International also earned 23.73 percent less profit in the last fiscal year than the previous fiscal year. The bank has earned a net profit of Rs 1.116 billion in the last fiscal year. The bank had earned a profit of Rs 1.46 billion in the corresponding period of the previous fiscal year.

Bank of Kathmandu Limited has earned a profit of only Rs 1.47 billion in the last fiscal year. The profit is 22.21 percent less than the previous fiscal year. The bank had earned a net profit of Rs 1.89 billion as of mid-July of the previous fiscal year.

Siddhartha Bank Limited has earned a net profit of Rs 2.92 billion till the fourth quarter of the last fiscal year. The financial statements have been made public. This is Rs. 164.9 million or 7.30 percent less than the corresponding period of the previous fiscal year.

Nepal Bank has earned a profit of Rs. 2.55 billion in the fiscal year 2076/77. In the previous fiscal year 2075/76, the bank had earned a profit of Rs 2.59 billion.

Banks have seen a decline in profits after four months of business was affected by Covid 19. The distributable profit of most of the banks has turned negative as the net profit of the banks has declined. Investors will not receive dividends this fiscal year due to the shrinking profits in the fourth quarter of the last fiscal year. Chairman of the Nepal Bankers Association Bhuvan Dahal said it would be difficult for the bank to distribute dividends this year.

Due to the situation created due to Covid 19, the banks have been unable to do anything other than accepting deposits for the last four months.

Banks' earnings per share have declined due to non-recovery of old loans due to Kovid, while bad loans have increased. Lakdaun, which was removed from the district on April 26, has been banned from going from one district to another from today. As Corona's infection grows, the government is tightening its grip again. Its impact is likely to be felt in the banking sector for a long time to come.