Banking sector profit sees 31.12% growth, led by commercial banks

KATHMANDU: The banking sector in Nepal has witnessed a notable increase in profits, with category A, B, and C banks recording a growth of 31.12% in the month of Magh, compared to the previous month of Poush in the current fiscal year.

According to data released by Nepal Rastra Bank, the profit growth marks a positive turnaround after a decline of 6.79% in Ashar of fiscal year 2022/23 and a further dip of 8.81% in Ashar of fiscal year 2023/24 compared to the previous years.

Commercial banks have led the profit surge, showing a growth rate of 31.46% in Magh compared to Poush. Commercial banks’ net profit increased from Rs 27.43 billion in Poush to Rs 36.68 billion in Magh.

Meanwhile, the net profit of development banks saw an increase of 28.37%, reaching Rs 3.442 billion in Magh, up from Rs 2.682 billion in Poush. Finance companies also reported growth, with their net profit rising by 23.11%, from Rs 230 million in Poush to Rs 284 million in Magh.

The growth in the banking sector’s profit indicates a recovery in the financial market, led by commercial banks, contributing to the overall improvement in the country’s financial health.