Nepal’s 20 commercial banks have recorded an overall improvement in net interest income by the end of the second quarter (mid-January) of fiscal year 2082/83, according to their unaudited financial statements. Compared to the same period of the previous fiscal year, total net interest income increased by 3.72 percent to NPR 96.05 billion, up from NPR 92.61 billion.
Based on net interest income, Nabil Bank maintained its leading position, earning NPR 8.08 billion, reflecting a 2.42 percent year-on-year growth.
Global IME Bank ranked second with NPR 8.02 billion in net interest income. However, its income declined by 3.33 percent compared to last year. Kumari Bank, securing third place, posted NPR 6.78 billion, recording a strong 27.65 percent growth rate.
Rastriya Banijya and Kumari Lead Growth Rates
In terms of percentage growth, the state-owned Rastriya Banijya Bank emerged as the top performer, posting a significant 38.49 percent increase in net interest income. The bank’s earnings rose from NPR 4.41 billion last year to NPR 6.10 billion this year.
Other banks achieving above-average growth include Kumari Bank (27.65 percent), Sanima Bank (19.26 percent) and Agricultural Development Bank (16.55 percent). NMB Bank saw its income rise by 12.18 percent, while Nepal SBI Bank recorded an 11.67 percent increase.
Six Banks Post Declines
Out of the 20 commercial banks, 14 recorded growth in net interest income, while six experienced declines. The sharpest drop was seen at NIC Asia Bank, where income fell by 15.87 percent to NPR 4.36 billion.
Similarly, Nepal Investment Mega Bank saw a 12.83 percent decline to NPR 6.42 billion, Himalayan Bank fell by 10.19 percent to NPR 4.70 billion, Standard Chartered Bank Nepal declined by 9.13 percent to NPR 1.97 billion, Nepal Bank dropped by 3.97 percent to NPR 4.44 billion, and Global IME Bank also reported a 3.33 percent decrease.
Moderate and Stable Performers
Several banks recorded steady growth ranging between 1 and 6 percent. Laxmi Sunrise Bank posted a 1.14 percent increase, Prabhu Bank grew by 2.38 percent, and Citizens Bank International by 2.28 percent.
Meanwhile, Everest Bank (5.96 percent), Prime Bank (5.30 percent), Siddhartha Bank (5.15 percent) and Machhapuchchhre Bank (4.16 percent) also reported growth in net interest income.
At the bottom of the list, Standard Chartered Bank Nepal recorded the lowest net interest income at NPR 1.97 billion, marking a 9.13 percent decline from the previous year.
Overall, while larger and older banks appear to be struggling to maintain earnings, state-owned and mid-sized banks have successfully expanded their market share and strengthened net interest income, signaling a cautiously positive outlook for Nepal’s banking sector.
