Bank Profits Jump 43.39% on Recovery Gains and NRB Concessions

The combined profit of commercial banks in Nepal jumped 43.39 percent in fiscal year 2024/25 compared to the previous year, according to their recently published unaudited financial statements.

The sharp increase was driven by improved loan recovery, which reduced the amount required for risk provisioning. Nepal Rastra Bank’s decision to lower provisioning requirements for loans classified as “good” and to allow restructuring of agriculture and small and medium enterprise (SME) loans also boosted earnings. 

Alongside the profit growth, banks’ distributable dividends, too, have increased.

In total, 20 commercial banks earned Rs 71.51 billion last fiscal year in profits, up from Rs 49.87 billion in 2023/24.

Of these, 16 banks reported higher profits, while Standard Chartered, Nepal SBI, Citizens, and NIC Asia posted declines. NIC Asia recorded the steepest drop, with profit plunging 76.97 percent.

 

Nabil Bank topped the profit chart, earning over Rs 7 billion. Kumari Bank and Nepal Bank posted the largest percentage gains. Kumari Bank’s profit soared to Rs 2.11 billion from just Rs 4.6 million the previous fiscal. Nepal Bank’s earnings surged from Rs 284 million in 2023/24 to Rs 3.77 billion last fiscal.