Q2 Reports Unveils Profit Declines for 16 Commercial Banks, Nabil Bank Leads Amidst Industry-wide Downturn

During the second quarter of the fiscal year 2080/81, the financial performance of several banks displayed a marked downturn, as evidenced by a substantial decrease in net profits for 16 institutions. Only four banks managed to buck this trend, recording an increase in profits.

Notably, Nepal Bank (NBL), a government-owned entity, faced the most significant decline in profit. The stark contrast between its current profit of Rs. 59 Crores and the previous year's Q2 profit of Rs. 1.17 Arba reflects a substantial downturn of 49.60%.

Following closely behind, NIC Asia experienced a severe 41.84% decline in profits, with Prabhu Bank at 39.97%, Nepal SBI Bank at 28.60%, Global IME Bank at 26.60%, Rastriya Banijya Bank at 25.68%, and Machhapuchchhre Bank at 21.45%.

One noteworthy exception was Nabil Bank Limited, which achieved the highest profit of Rs. 3.20 Arba in the second quarter of the fiscal year 80/81, topping the profit charts among all banks. However, a modest decrease of 6.28% was observed when compared to its previous year's Q2 profit of Rs. 3.4 Arba.

In terms of notable improvements, Himalayan Bank led the way with a substantial 57.53% increase in profits, followed by Prime Commercial Bank at 32.13% and Everest Bank at 7.88%. Additionally, the Agricultural Development Bank, which incurred losses in the previous year's Q2, turned the tide by recording a profit of Rs. 1.35 Arba in the current fiscal year's Q2.