Kathmandu – After a long period of pressure, the banking sector has started to see a ‘recovery’ of profits. With the improvement in loan recovery and increase in net interest income, the profits of commercial banks have started to rise again. As of the second quarter of the current fiscal year, the 20 commercial banks operating have earned a profit of Rs 30.59 billion 39 million.

This profit is 11.51 percent more than the same period of the previous fiscal year. Last year, the profit of commercial banks was limited to Rs 27.43 billion 69 million during the same period. The banking sector, which has been under pressure for a long time due to increasing bad loans, high interest rates and slowing demand for loans, is now gradually returning to balance.

The main reason for the improvement in the profits of banks is the increase in net interest income. As of the second quarter, only 6 out of 20 banks have decreased their net interest income, while the remaining 14 banks have increased their net interest income. This seems to have had a positive impact on the overall banking profit.

Top Profits Banks in Nepal 

According to the data released by the banks till mid-December, while the profits of 11 banks increased, the profits of 9 banks declined. Nabil Bank is the one that earned the highest profit in the second quarter. The bank earned a profit of 4.75 billion 9.641 billion by mid-December.

Global IME Bank is in second place. The bank has earned a net profit of 3.25 billion 21 million. Similarly, Kumari Bank is in third place with a profit of 2.72 billion. Similarly, Everest Bank has earned a profit of 2.11 billion by mid-December, Prime Bank has earned a profit of 2.4 billion, and Rastriya Banijya Bank has earned a profit of 1.77 billion. Sanima Bank has earned a profit of 1.39 billion, Standard Chartered Bank has earned a profit of 1.32 billion, Nepal SBI Bank has earned a profit of 1.30 billion, and Machhapuchhre Bank has reached 1.10 billion.

NMB Bank has earned a profit of Rs 1.64 billion, Nepal Investment Mega Bank has earned a profit of Rs 1.61 billion, Himalayan Bank has earned a profit of Rs 1.29 billion, Prabhu Bank has earned a profit of Rs 1.11 billion, Krishi Bikas Bank has earned a profit of Rs 707.4 million, Citizen Bank has earned a profit of Rs 358.8 million, and NIC Asia Bank has earned a profit of Rs 131.1 million.