Nepal’s commercial banks recorded a modest 2.81 percent growth in net profits during the first eight months of the current fiscal year, even as the financial sector grappled with excess liquidity and a sluggish economy.
According to data from Nepal Rastra Bank (NRB), commercial banks collectively earned Rs 43.49 billion in net profits between mid-July 2024 and mid-March 2025. This marks an increase from Rs 42.30 billion during the same period last fiscal year.
Of the 20 commercial banks operating in the country, 11 posted profit growth, while the remaining nine—including Prime Bank, Rastriya Banijya Bank, Himalayan Bank, Siddhartha Bank, Machhapuchchhre Bank, Citizens Bank, Kumari Bank, NIC Asia Bank, and Agriculture Development Bank—saw a decline in earnings. Agriculture Development Bank reported the lowest profit, at Rs 738 million.
Nabil Bank emerged as the top performer, securing the highest net profit of Rs 4.78 billion. It was followed by Global IME Bank with Rs 4.72 billion, and Nepal Investment Mega Bank with Rs 4.08 billion.
Meanwhile, development banks posted total net profits of Rs 4.33 billion during the review period. Garima Bikas Bank led the segment with Rs 834.8 million in profits, followed by Muktinath Bikas Bank (Rs 787.8 million) and Shine Resunga Development Bank (Rs 564.8 million).
Among the 17 development banks (‘B’ class financial institutions), five suffered net losses: Narayani Development Bank, Saptakoshi Development Bank, Karnali Development Bank, Corporate Development Bank, and Excel Development Bank.
Despite limited lending activity due to weak loan demand and challenges in recovering bad debts, banks and financial institutions (BFIs) still reported notable profits. As of mid-March 2025, BFIs had disbursed Rs 295.35 billion in private sector loans—marking a 5.7 percent increase from mid-July 2024.
