The total capital of the commercial banks changed by 10.23% compared to the same quarter last year and now stands at Rs.97.11 arba. The top 5 banks accounted for one third of the total capital of the commercial banking sector. During our review period, the capital of 21 banks changed and the capital of 9 banks remained unchanged.
The average capital of a commercial bank in Nepal is now Rs.3.35 arba. The paid up capital of the commercial banks increased by an average of 13.65% Q1 to Q1.
Rastriya Banijya Bank Ltd. has the highest paid-up capital among all the commercial banks. Its paid up capital stands at Rs.8.59 arba. Its capital has not changed compared to last year.
The top 5 banks with the highest paid up capital as of Q1 2072 are Rastriya Banijya Bank, Nepal Bank Ltd., Nepal Investment Bank Ltd., Global IME Bank Ltd. and Nabil Bank Ltd.
The greatest change in paid up capital has been of Nepal Credit and Commerce Bank Ltd. Its capital increased by 38% compared to the same period last year. It is closely followed by Nepal Investment Bank Ltd. with 33.07% increase in capital.
The banks whose capital did not change are Rastriya Banijya Bank Ltd., Nepal Bank Ltd., Prabhu Bank Ltd., NIC Asia Bank Ltd., Everest Bank Ltd., Janata Bank Ltd., Lumbini Bank Ltd. and Grand Bank Ltd.
Grand Bank Ltd., Lumbini Bank Ltd., NCC Bank Ltd., Janata Bank Ltd. and Century Commercial Bank Ltd. are the banks with the lowest paid-up capital. Of these five, Grand, NCC Bank and Janata are in the process of Merger. Of the 29 banks that have released their Q1 2072 report, 14 banks have paid-up capital between 2 and 3 arba, 10 banks have paid-up between 3 and 4 arba and 5 banks have paid-up capital above 3 arba. So far, of all the commercial banks, only Rastiya Banijya Bank Ltd. has met the minimum paid-up capital requirement of Rs.8 arba set by Nepal Rastra Bank. Banks have up to Asar end of 2074 to meet this requirement.
The total reserves of the commercial banking sector is Rs.47.91 arba. This is an increase of 28.93% compared to the same period last year.
The average reserve amount of the commercial banks is Rs.1.65 arba and the average Q1 to Q1 change in reserves per bank has been 36.04%. 10 banks have reserves above average and the remaining 20 have reserves below average. Four banks have managed to increase their reserves by more than Rs.1 arba from Q1 last year.
Nabil bank has the highest reserves amounting to Rs.5.41 arba and Nepal Bank Ltd. has the lowest reserves with negative reserves of Rs.2.15 arba.
The highest percentage change in reserves has been of Prabhu Bank Ltd. whose reserves went from a negative Rs.41.98 crores to a positive Rs.70.54 crores. This is a change of 268.04%. Machhapuchhre and Laxmi too have performed well in this regard and increased their reserves by 91.01% and 87.39% respectively.
In absolute amount, Rastriya Banijya Bank Ltd. managed the highest increase in reserves with an increase of Rs.3.82 arba.
The top 5 banks accounted for more than half (51.31%) of the total reserve of all the commercial banks. Nabil Bank Ltd., Agricultural Development Ltd. and Everest Bank Ltd., combined account for more than one third of the total reserves of the commercial banking sector.
Interestingly, top two banks with the highest reserves have in fact decreased their reserves compared to the same period last year. Nabil Bank Ltd's reserves decreased by 8.03% and Agricultural Development Bank Ltd's reserves decreased by 16.60%.
*NMB Bank Ltd. has not made its Q1 2072 report public at the time of publishing this article.
