Kathmandu: Nepal’s commercial banking sector posted a strong financial performance in the first 11 months of the current Fiscal Year 2025/26, with combined net profits rising by nearly 20 percent, driven primarily by improved loan recovery, stronger operational efficiency, and better financial management.
According to data from the Nepal Rastra Bank (NRB), the country’s 20 Class ‘A’ commercial banks earned a combined net profit of Rs 64.56 billion between mid-July 2025 and mid-June 2026, representing a 19.62 percent increase compared to Rs 53.97 billion recorded during the corresponding period of the previous fiscal year.
Banking officials attributed the improved earnings largely to stronger recovery of overdue loans, tighter cost management, and enhanced operational performance despite continued challenges in credit expansion.
Majority of Banks Report Higher Earnings
Of the 20 commercial banks, 14 banks recorded growth in net profits, while six banks reported declines.
Kumari Bank posted the most remarkable improvement, with its net profit soaring from Rs 371.08 million in the previous year to Rs 4.70 billion during the review period, making it the fastest-growing commercial bank in terms of profitability.
In contrast, NIC Asia Bank recorded the sharpest decline among all commercial banks. Its net profit fell by 38.81 percent, dropping from Rs 829.74 million to Rs 507.7 million. It was also the only commercial bank to report a net profit of less than Rs 1 billion during the period.
Nabil Bank Remains the Most Profitable
In terms of absolute earnings, Nabil Bank retained its position as Nepal’s most profitable commercial bank, posting a net profit of Rs 8.49 billion during the first 11 months of the fiscal year.
Global IME Bank ranked second with a net profit of Rs 5.97 billion, although its earnings declined marginally by 0.96 percent compared to Rs 6.03 billion recorded during the same period last year.
State-Owned Banks Also Improve Performance
Among government-owned commercial banks, Rastriya Banijya Bank (RBB) recorded the highest profit growth, with net earnings increasing by 68.82 percent to Rs 3.72 billion.
Similarly, Nepal Bank Limited (NBL) reported an 8.37 percent increase in net profit, reaching Rs 3.32 billion, while the Agricultural Development Bank Limited (ADBL) posted a 7.67 percent rise, earning Rs 1.96 billion during the review period.
Improved Recovery Boosts Banking Sector
Despite subdued demand for new loans and excess liquidity across the banking system, the improved financial results indicate that commercial banks have strengthened their balance sheets through better loan recovery and more efficient operations.
The latest performance suggests that banks are increasingly focusing on improving asset quality and recovering non-performing loans, helping offset the impact of weak private-sector credit demand and challenging economic conditions.
