Nepal’s Banking Sector Hits Rs. 49 Billion Profit Milestone; Growth Remains Highly Uneven

Based on the financial data for the third quarter of the fiscal year 2082 (ending 30th Chaitra), the commercial banking sector in Nepal shows a total net profit of Rs. 49.21 billion, marking a healthy 19.30% increase compared to the same period in 2081.

Top Earners and Performance Leaders

Nabil Bank maintains its position as the highest earning commercial bank, reporting a net profit of Rs. 6.76 billion. While it holds the top spot in absolute volume, its year on year growth of 33.92% is also significantly higher than the industry average. Following Nabil is Global IME Bank with a profit of Rs. 4.40 billion, though it notably saw a slight decline of 2.93% compared to the previous year.

The most dramatic performance improvement comes from Kumari Bank, which recorded an astronomical growth of 1361.76%, rising from a low base of Rs. 285 million last year to Rs. 4.17 billion this year. Similarly, Rastriya Banijya Bank showed robust recovery with a 129.34% increase, more than doubling its profit to Rs. 2.76 billion.

Banks with Declining Profits

On the lower end of the spectrum, NIC Asia Bank reports the lowest net profit among the group at Rs. 140 million, a further 10.49% drop from its already weakened position the previous year. Several other major players also faced significant downturns:

• Prabhu Bank saw its profit slashed by over half (-54.61%), falling from Rs. 1.87 billion to Rs. 851 million.
• Nepal Investment Mega Bank (NIMB) experienced a 30.69% decline, ending the quarter with Rs. 3.14 billion.
• Agriculture Development Bank followed a similar trend with a 24.42% decrease in net earnings.

Growth vs. Previous Year

Overall, 13 out of the 20 banks listed achieved positive growth, while 7 banks saw their profits shrink. The sector's growth is heavily polarized; while banks like Kumari, Himalayan (52.49%), and Machhapuchchhre (50.43%) are surging, established names like Standard Chartered (-4.24%) and Everest Bank (-3.71%) have seen minor contractions. This suggests a shifting landscape where some banks are successfully managing asset quality and recovering loans, while others continue to struggle with rising non-performing loans (NPLs) and provisioning requirements.

Net Profit of Commercial Bank in table (Highest to Lowest Earners)