Nov Wed 2023 03:23:31
Kathmandu. The average return on equity (ROE) of commercial banks in three months is around 8 percent. In the first quarter of the current financial year, the banks have earned an average return of 7.86 percent. During the review period, the banks have earned a net profit of Rs. 13.47 billion.
The net profit of banks is also decreasing. In the first quarter itself, the profit of banks has decreased by 28 percent. Especially, the business of banks is not growing due to the economic recession. Bad loans of banks are also increasing. "Especially because of the increase in bad loans of banks, the profit has been affected. In the first quarter, banks allocated a large amount of income to impairment charges. Which has affected the profit.
NIC Asia, which has always ranked first on the basis of ROE, has reached the third position in the first quarter. NIC had been building capacity to pay high dividends for a few years. However, recently, it seems to be on a downward journey from its leading position. In the first quarter, NIC Asia Bank has gathered the ability to return only 13.61 percent of its net assets. Currently, the bank has net assets of 30 billion. During the review period, the bank earned a net profit of Rs 1 billion 1 crore.
Standard Chartered Bank is on the first list in the first quarter. During that period, the bank has been able to give a return of 16.16 percent of its own assets. The bank has earned a net profit of Rs 827.7 million in the first quarter, while the bank has net assets worth Rs 20,930 million.
In the last few years, Prime Commercial Bank, which is seen towards the final list, has also increased its position in ROE. In the first quarter of last year as well, the bank earned a profit of around 12 and a half percent. Last year, this strength was only single digit ie 8.65 percent. However, in the first quarter of the current year, the bank has brought it to the second list of ROE with major changes. The bank is able to give 15.94 percent return in three months. At present, the bank has net assets equal to 29 and a half billion. In the first quarter of the current year, the bank has earned a profit of 1 billion 15 million rupees.
Similarly, NMB Bank is seen at the fourth number. During the review period, the bank has made a profit of 13.33 percent. On the other hand, Machhapuchhre Bank has 13.26 percent, Everest 12.19 percent, Prabhu 12.02, Himalayan 11.57, Nepal SBI 10.44, Nepal Investment Mega 10.36 and Nabil 10.01 percent. It has been found that Himalayan Bank, which was seen as a single-digit committee in the past years, is also increasing its status. Even in the first quarter of last year, the bank's ROE was only 9.6 percent. Last year, the bank was ranked 12th, but in the first quarter of the current year, it was seen in the 8th list.
Similarly, the ROE of eight banks is seen in single digits. Those banks are not able to cut their net profit even 10 percent of the net worth. Sanima Bank has 9.82 percent, Global IME 8.16 percent, Citizen 7.89, National Commercial Bank 6.15, Kumari 2.81 percent. On the other hand, Nepal Bank, Lakshmi Sunrise and Siddharth Bank are also seen in the final list. During the review period, Nepal Bank earned 1.54 percent of net assets, Lakshmi Sunrise 1.09 percent and Siddharth Bank only 0.67 percent.
However, the state-owned Agricultural Development Bank has reached a situation where it cannot give returns. In the first quarter, the net profit of the bank is negative 888 million rupees. The bank has more than 33 billion 24 million net assets. The profit of the bank has become negative due to the increase in bad loans.