Rise in net interest income pushes up banks’ net profit

ShareSansar, Aug 20:

The rise in net interest income has had positive effect on commercial banks’ net profit. In the fiscal year 2069/70, the banks’ net income from interest increased 40%, thus, helping their net profit grow 31%.

In fiscal 2060/70, net interest income of 31 commercial banks reached Rs 44 arba 44 crore 11 lakh, which is an increment of 39.293% over FY 2068/69. In FY 2068/69, banks net income from interest was Rs 31 arba 90 crore 47 lakh.

The rise in income from interest has been attributed to expansion of investments and increased lending.

Commercials banks earned net profit of around Rs 19, which is a rise of 31.469% over the net income earned in the FY 2068/69. The banks had earned a net profit of Rs 14 arba 32 crore 7 lakh in FY 2068/69.

Nabil Bank and Agricultural Development Bank earned a net profit of over Rs 2 arba, while Nepal Investment Bank, Rastriya Banijya Bank, Standard Chartered Bank and Himalayan Bank generated profit of over Rs 1 arba.

Commercial banks had extended loans of Rs 7 kharba, 47 arba, 94 crore in FY 2069/70, which was a rise of 24.25 percent over Rs 6 kharba, 1 arba, 94 crore disbursed in FY 2068/69.

The commercial banks had also increased their investment in different sector. The banks invested Rs 2 kharba, 9 arba and 16 crore in FY 2069/70. In FY 2068/69, banks had invested 1 kharba, 79 arba, 2 crore in different sector.