Nepal’s 20 commercial banks posted a combined net profit of Rs 19.145 billion in the first quarter of FY 2026/27, up 45.58 percent from Rs 13.15 billion in the same period last year. The increase was mainly driven by lower loan-loss provisions and reduced funding costs, despite sluggish credit growth.
Banks’ loan-loss provisions fell to Rs 10.99 billion from Rs 20.04 billion a year earlier. Nabil Bank recorded the highest profit at Rs 2.55 billion, followed by Global IME Bank with Rs 2.31 billion. While 17 banks reported profit growth, three saw declines.
Despite higher profits, the average non-performing loan ratio rose to 5.64 percent from 4.86 percent. Prabhu Bank recorded the highest NPL ratio at 14.80 percent.
