Profit of Commercial Banks Rises by 6.25 Percent in First Quarter of Current FY

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Profit of Commercial Banks Rises by 6.25 Percent in First Quarter of Current FY

November 17: The profit of commercial banks has increased by 6.25 percent in the first three months of the current fiscal year. Altogether 28 commercial banks of Nepal have recorded profit of Rs 16.17 billion during the review period. The total profit of commercial banks during the corresponding period of last fiscal year was Rs 15.22 billion.

Rastriya Banijya Bank, Nabil Bank and NIC Asia Bank have recorded the biggest gains among all commercial banks of the country. The financial report of the banks shows that these three banks made profit more than Rs 1 billion in the first three months of the current fiscal year. During the review period, Rastriya Banijya Bank made a profit of Rs 1.12 billion while Nabil Bank also recorded profit of Rs 1.12 billion and NIC Asia Bank’s profit was Rs 1.09 billion.

Bankers say that they were not able to make profit as per their expectation due to tough competition among themselves.

CEO of Sanima Bank Bhuvan Dahal said that the profit of commercial banks during the first three months of the current fiscal year was not much satisfactory.

“The operating cost has increased due to the haphazard opening of branches by various banks. But the business has not expanded in the same ration,” said Dahal.

“Meanwhile, banks have been forced to reduce the rate of interest due to tough competition,” he added.

Although the overall profit of the commercial banks increased during the review period, some banks recorded reduction in profit.

Nepal Investment Bank, Siddhartha Bank, Nepal SBI Bank, Bank of Kathmandu, Citizens Bank International, NCC Bank, Civil Bank and Nepal Bank registered relatively lower profit as compared to the last fiscal year.

Nepal Investment Bank had recorded a profit of Rs 1.05 billion during the first quarter of the last fiscal year. But during the corresponding period of the current FY, Nepal Investment Bank was able to make a profit of Rs 840 million only. Likewise, the profit of Nepal Bank decreased by 36.33 percent to Rs 580 million this year. Nepal SBI Bank also recorded a reduction in profit by 10 percent while NCC Bank saw its profit reduced by 20 percent. Civil Bank’s profit fell by 14.1 percent.

Siddhartha Bank recorded a slump in profit by 0.69 percent and Bank of Kathmandu by 8 percent.

 

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