Commercial and Development Banks Earn Nearly Rs 51 Billion Profit by Mid-Year; Nabil Bank Tops the List

Kathmandu — Nepal Rastra Bank (NRB) has published the financial performance report of commercial and development banks for the first seven months of the current fiscal year 2082/83, ending in Magh. The report shows that the banking sector has collectively generated significant profits, although the distribution of earnings varies widely among institutions and some development banks have reported losses.Nabil Leads Among Commercial BanksAccording to the central bank’s data, the 20 commercial banks operating in Nepal earned a combined net profit of around Rs 47.01 billion during the review period. Among them, Nabil Bank Limited emerged as the highest profit-earning bank with a net profit of approximately Rs 5.38 billion.Global IME Bank Limited secured the second position with earnings of about Rs 4.14 billion, while Kumari Bank Limited ranked third, reporting a net profit of roughly Rs 3.17 billion.Other strong performers in the sector include Everest Bank Limited, Prime Commercial Bank Limited, Nepal Investment Mega Bank Limited, and NMB Bank Limited, each recording profits exceeding Rs 2 billion.Banks such as Rastriya Banijya Bank, Nepal Bank Limited, Sanima Bank, Siddhartha Bank, and Standard Chartered Bank Nepal also posted profits above Rs 1 billion, indicating relatively stable financial performance within the sector.At the lower end of the profit ranking, NIC Asia Bank and Laxmi Sunrise Bank Limited reported comparatively smaller earnings. Laxmi Sunrise Bank recorded the lowest net profit among commercial banks, earning only about Rs 242.71 million during the review period.Mixed Performance in Development BanksThe development banking sector recorded a combined net profit of around Rs 4.01 billion during the same period. However, unlike commercial banks, the performance of development banks was more uneven, with several institutions posting losses.Muktinath Bikas Bank led the development banking sector with a net profit of about Rs 821.52 million. It was followed by Garima Bikas Bank, which reported earnings of approximately Rs 779.44 million.Shine Resunga Development Bank ranked third with a net profit of around Rs 518.23 million. Other development banks such as Kamana Sewa Bikas Bank, Jyoti Bikas Bank, Shangrila Development Bank, Mahalaxmi Bikas Bank, and Lumbini Bikas Bank also recorded notable profits.However, four development banks reported losses during the period. These include Corporate Development Bank, Salapa Bikas Bank, Sindhu Bikas Bank, and Narayani Development Bank. Among them, Narayani Development Bank posted the largest loss, amounting to approximately Rs 51.48 million.Wide Gap in Profitability Across BanksThe NRB report indicates a considerable gap in profitability between larger commercial banks and smaller development banks. Institutions with larger capital bases, broader branch networks, and diversified investment portfolios appear to be performing significantly better than smaller regional banks.Financial analysts attribute the disparity primarily to differences in loan expansion, deposit mobilization, service income, investment returns, and operational efficiency. Banks with stronger credit portfolios and better cost management have been able to maintain higher profitability.Banking Sector Stable but Challenges PersistDespite the overall profit growth, economists say the banking sector still faces several structural challenges. Rising non-performing loans (NPLs), slower credit expansion, and fluctuations in interest rates continue to influence bank profitability.Nevertheless, Nepal’s banking system remains relatively stable due to strong regulatory oversight by the central bank, improved capital adequacy, and prudent liquidity management. Analysts say maintaining asset quality and expanding productive lending will be key for sustaining profitability in the coming months.