Nepal’s commercial banks posted a combined net profit of Rs 69.86 billion in FY 2025/26, marking a 32.27 percent increase compared to the previous fiscal year.
According to unaudited financial statements published by Nepal’s 20 commercial banks, the banks had earned a combined Rs 52.81 billion in FY 2024/25. Their total profit therefore increased by Rs 17.05 billion over the year.
The rise in profitability came despite a decline in interest income. Improved loan recovery, changes in loan-loss provisions, tighter control over operating expenses and growth in other sources of income contributed to the improvement in banks’ bottom lines.
The increase in profits comes amid continued weakness in credit demand. Although interest rates have fallen to around their lowest levels in a decade, private-sector investment has not increased significantly. As a result, banks continue to hold substantial amounts of excess loanable funds.
Among individual banks, Nabil Bank recorded the highest net profit at Rs 7.90 billion, an increase of 33.49 percent compared to the previous year. Kumari Bank ranked second with a profit of Rs 7.38 billion, followed by Global IME Bank with Rs 6.22 billion and Everest Bank with Rs 5.06 billion.
Of the 20 commercial banks, 14 reported an increase in net profit, while four recorded declines. NIC Asia Bank returned to profit after reporting a loss in the previous fiscal year, while Prabhu Bank reported a loss.
The improved profitability indicates stronger cost management and loan recovery in Nepal’s banking sector, although the continued weakness in credit demand and high excess liquidity remain major challenges for banks.
