Development banks have registered higher profit growth than commercial banks in the third quarter of the current fiscal year. In this period, the average profit growth of 27 commercial banks is just 2.36 percent higher compared to the corresponding period of the last fiscal year 2018/19, whereas the average profit growth of 21 development banks has been registered at 10.39%.
In the third quarter of the current fiscal year, 21 development banks have earned a total of Rs 4.55 billion in profit which was Rs 4.12 billion in the corresponding period of FY2018/19. Muktinath Bikas Bank has logged highest profit among the class ‘B’ banks. The bank earned Rs 676 million in profit, up 8 percent from Rs 625.5 million in the same period of last fiscal year. Garima Baikas Bank and Lumbini Bikas Bank are second and third high profit earners, respectively; Garima Bikas has registered a profit of Rs 496.40 million while Lumbini Bikas reported profit of Rs 437.60 million. Similarly, Shine Resunga Development Bank has earned Rs 436.70 in profit, up 40.48 percent from Rs 310.90 in the corresponding period of the last fiscal year.
Among the 21 development banks, seven development banks, namely Corporate Development Bank, Deva Bikas Bank, Excel Development Bank, Gandaki Bikas Bank, Sahara Bikas Bank, Sindhu Bikas Bank and Shangri-la Development Bank, have seen their profits decline in the 3rd quarter of the current fiscal year.