The income of commercial banks has declined in the first quarter of the current Fiscal Year 2077/78 due to Corona Virus (Covid-19).
Due to COVID-19, many borrowers have not been able to repay their loans on time and the income of banks has declined.
Profits of most of the 29 operating commercial banks have declined. Although some banks have increased their profits, the overall three-month income of banks has been reduced by Rs 80 crore as compared to the previous fiscal year. Banks had submitted their first quarter report to Nepal Rastra Bank before Tihar.
Commercial banks had earned a profit of Rs 15.55 billion in the first quarter of FY 2076/77 but only Rs 14.76 billion in the current fiscal year.
Which bank earn how much?
Despite the epidemic, Global IME Bank has been the number one source of profit growth. It is the largest bank formed by the then Janata Bank Nepal and Global IME Bank.
The bank has earned a net profit of Rs 1.58 billion in the first quarter. The bank had earned only Rs 753.2 million in the first quarter of the previous year.
Nabil Bank is the second most profitable bank. Nabil Bank has earned a profit of Rs 1.3 billion during the period. Its profit is Rs 90 million less than last fiscal year.
NIC Asia Bank, which has been criticized for being too aggressive in loan expansion and auctioning collateral before maturity, has slightly improved its profits. The bank, which earned only Rs 1.12 billion last year, has slightly improved to Rs 1.2 billion in the first quarter of this year.
The profit of Prime Commercial Bank, which is trying to become stronger by merging some strong development banks, has also increased. The bank, which earned around Rs 660 million in the first quarter of last year, has increased it to Rs 1.1 billion this year.
Similarly, Prabhu Bank has increased its profit from Rs 620 million to Rs 850 million, while Rastriya Banijya Bank, which is in the first position in terms of profit, has reduced its profit from Rs 1.12 billion to Rs 830 million.
NMB Bank has increased its profit from Rs 270 million last year to Rs 730 million this year, while Mega Bank has increased it from Rs 430 million to Rs 600 million. Nepal Investment Bank’s profit has also declined. It has been limited to Rs. 620 million in the first quarter of this year as against Rs. 840 million in the previous year.
Profit of all other banks