Banks’ net profits hit Rs 19.14 billion, a 45.58 percent rise due to decline in costs of funds
Summary
Commercial banks in Nepal earned net profit of Rs 19.145 billion in the first quarter of the current fiscal year, up 45.58 percent year-on-year as lower provisioning and cheaper funding costs boosted earnings. But bad loans continued to rise, pushing the average non-performing loan ratio to 5.64 percent.
Key Points
- Commercial banks in Nepal posted net profit of Rs 19.145 billion in the first three months of the current fiscal year, up 45.58 percent from a year earlier.
- The increase was driven by lower loan loss provisioning and a decline in the cost of deposits, even as credit growth remained sluggish.
- Nabil Bank reported the highest profit at Rs 2.55 billion, followed by Global IME Bank at Rs 2.31 billion, while 17 banks saw profits rise.
- The average NPL ratio of commercial banks increased to 5.641 percent, with Prabhu Bank recording the highest NPL ratio at 14.80 percent.
