Commercial Banks Register 7.32pc Profit Growth in First Two Months; Nabil Dominates as Himalayan Sees Highest Surge

Demonstrating early resilience in the current fiscal year, Nepal’s commercial banking sector has reported a steady 7.32 percent growth in aggregate net profit during the first two months (Shrawan and Bhadra). According to the latest financial data released by the Nepal Rastra Bank (NRB), the 20 commercial banks collectively generated Rs 17.81 billion in net profit during this period, an encouraging uptick from the Rs 16.59 billion recorded in the corresponding months of the previous fiscal year.

However, a deeper dive into the central bank’s statistics reveals a stark divergence in institutional performance, indicating an uneven playing field. While the overall sectoral balance sheet looks green, the growth was not uniform across the board. Out of the 20 commercial banks currently in operation, 13 successfully expanded their bottom lines, whereas the remaining seven witnessed a contraction in their net profits. Financial analysts suggest that this polarization reflects the varying degrees of success banks have had in managing their non-performing loans, optimizing their fund costs, and expanding credit in a recovering economy.

In terms of sheer financial volume, Nabil Bank has firmly cemented its position as the undisputed market leader. The bank alone amassed a staggering net profit of Rs 1.80 billion in just two months, propelled by a robust 35.83 percent year-on-year growth from last year’s Rs 1.32 billion. Following Nabil in the absolute earnings hierarchy are industry giants Global IME Bank and Nepal Investment Mega Bank (NIMB), which secured the second and third spots, respectively. Prime Commercial Bank and the state-owned Rastriya Banijya Bank rounded out the top five highest earners, underscoring the dominance of highly capitalized institutions in capturing market profitability.

When analyzing relative growth, however, Himalayan Bank emerged as the most aggressive performer. Bouncing back with remarkable momentum, Himalayan Bank logged a spectacular 55.13 percent surge in its net profit. The bank’s earnings jumped to Rs 575.1 million during the review period, up significantly from Rs 370.7 million a year ago. Sanima Bank closely followed this aggressive growth trajectory, posting a 42.15 percent increment to propel its net profit past the one-billion mark, settling at Rs 1.02 billion compared to Rs 721.5 million last year.

The mid-tier and moderate growth segment also saw healthy, albeit varied, progress. Rastriya Banijya Bank augmented its profit by an impressive 25.31 percent, while Nepal SBI Bank and Prabhu Bank posted solid gains of 17.32 percent and 10.13 percent, respectively. Other institutions managed to secure single-digit growth to keep their balance sheets positive: Prime Commercial Bank (9 percent), Machhapuchchhre Bank (8.18 percent), and Everest Bank (7.88 percent).

Meanwhile, some legacy institutions managed to eke out only marginal upward momentum. Global IME Bank grew its net profit by a modest 4 percent. Even tighter margins were observed for Nepal Investment Mega Bank (0.91 percent), NIC Asia Bank (0.79 percent), and NMB Bank, which barely scraped into the positive territory with a microscopic 0.13 percent growth.