Net profit of Nepal Bank (NBL) has declined in the first quarter of the current fiscal year. Despite the increase in the bank's own interest income and operating profit, the bank's profit has declined as it has paid deferred tax.

The bank's distributable profit in the first quarter stood at Rs 196.4 million.

The bank has earned net interest income of Rs 1.48 billion during the period. The bank, which earned net interest income of Rs 1.32 billion in the same period last year, has increased its income by about Rs 160 million this year.

The bank's other operating income has also increased. Compared to last year, the bank's other operating income has increased from Rs 41 million to Rs 51 million.

The bank has also been controlling its expenses compared to last year. The bank's staff costs have dropped from Rs 670 million to Rs 650 million, while other operating expenses have fallen from Rs 190 million to Rs 170 million.

The bank's bad loans have increased compared to last year. During this period, the NPL ratio of the bank has increased from 2.75 percent to 3.02 percent. Banks need to focus on controlling bad loans in the coming days.

The bank's capital adequacy ratio stood at 17.03 percent while the CCD ratio fell to 66.54 percent. During this period, the base rate of the bank is 6.81 percent and the spread rate is 4.38 percent.

The bank has an annual earnings per share of Rs 19.51, a net worth of Rs 272.49 per share and a price-to-earnings ratio of 16.60 times.