27 of 30 banks post profits in Q1

- POST REPORT, Kathmandu
27 of 30 banks post profits in Q1

Nov 19, 2014-

Twenty-seven out of 30 commercial banks earned profits in the first quarter of the fiscal year. The loss-makers include Grand Bank, Prabhu Bank and Civil Bank.

The banks eared a combined Rs 4.98 billion profit—up 17.57 percent year-on-year. “Banks earned good profits amid high liquidity in the system that boosted lending,” said Manamohan Kumar Shrestha, spokesperson for the Nepal Rastra Bank (NRB).

Over the review period, banks’ credit disbursement rose 7 percent to Rs 74.64 billion, while deposit mobilisation increased 4.1 percent to Rs 48.48 billion, according to the central bank.

State-owned Rastriya Banijya Bank (RBB) led the profit makers, earning Rs 673.8 million. It was followed by Nabil Bank (Rs 504.86 million) and Nepal Investment Bank (Rs 491.31 billion). RBB stood sixth during the same period last year, but this year, sale of its crossholding shares heavily contributed to its profit. RBB CEO Krishna Prasad Sharma said the bank earned Rs 580 million from the sale of a portion of its shareholding in Nepal Investment Bank. “We have also done well in recovering loans, besides boosting credit disbursement,” he said, adding RBB aims to increase its lending as per the central bank’s directive given higher deposits.

In the review period, eight banks saw their profits fall—Kumari Bank, Mega Bank, Agriculture Development Bank, Civil Bank, Global IME Bank, Prabhu Bank, Nepal Bangladesh Bank and Grand Bank.

Among the loss-making banks, Grand Bank lost the highest Rs 280.63 million, followed by Prabhu Bank (Rs 116.83 million) and Civil Bank (Rs 9.6 million). Grand Bank had lost Rs 1.6 billion at the end of last fiscal year.

Published: 20-11-2014 11:01

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