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COVID-19 Impact On Commercial Bank’s Profit: Nepal

Due to COVID-19, like other sectors, the condition of banks and financial institutions are also in trouble. In the Fiscal Year 2076/77, the profits of 27 commercial banks have declined significantly.
Nepal Rastra Bank. Image for Representation

N24 Staff Writer, KATHMANDU: World is under the attack of an ongoing pandemic, COVID-19. Likewise, Nepal also could not remain untouched by impact of corona virus. The country’s overall economic sector has been badly hit due to this pandemic since March 24.

Due to COVID-19, like other sectors, the condition of banks and financial institutions are also in trouble. In the Fiscal Year 2076/77, the profits of 27 commercial banks have declined significantly. Apart from Krishi Bikas Bank and Prabhu Bank, 25 Class “A” commercial banks have published their annual statements for the fiscal year 2076/77. According to the details made public by them, the profit of commercial banks have been affected majorly due to ongoing pandemic.

According to the unrevised financial statements made public by the banks, they have made a total profit of Rs 51.17 billion in FY 2076/77. While, in the previous year, the total profit was Rs 57.44 billion. Compared to the previous year, the profit of banks has decreased by about 11 percent in this fiscal year. As per the details, the profit of the bank has decreased by Rs 6.27 billion.

Out of the 25 commercial banks that have made their financial statements public, the profit of a total of 18 banks has decreased compared to the previous year. Likewise, profits of remaining 7 commercial banks have increased modestly.

Civil Bank is among the lowest profitable banks in FY 2076/77. The bank’s profit has declined by 35 percent. Likewise, Nepal SBI Bank profit declined by 33.22 percent.

According to the report, Machhapuchhre Bank’s profit fell by 26.22 percent, Sanima Bank’s by 24.56 percent, Citizens Bank’s by 23.72 percent, Nepal Investment Bank’s by 22.63 percent, Bank of Kathmandu’s by 22.21 percent and Nepal Bangladesh Bank’s by 20.75 percent.

Similarly, Standard Chartered Bank’s profit fell by 18.51 percent, Sunrise Bank’s by 18.35 percent, Everest Bank’s by 18.14 percent, Nabil Bank’s by 15.85 percent and Rastriya Banijya Bank’s by 11.77 percent. Siddhartha Bank’s profit fell by 8.26 percent, Himalayan Bank’s by 8 percent, Laxmi Bank’s by 6.66 percent, Nepal Bank’s by 1.55 percent, and Kumari Bank’s 0.31 percent.

Similarly, Century Bank made a profit of 33.97 percent, Global IME Bank of 11.84 percent, NCC Bank of 10.74 percent, Prime Bank of 4.27 percent, NIC Asia Bank of 3.24 percent and NMB Bank of 0.59 percent.

Rastriya Banijya Bank has earned a profit of Rs 4.45 billion. Likewise, Civil Bank has earned a profit of Rs. 457 million. Nabil Bank has earned a profit of Rs 3.56 billion, while NIC Asia Bank has earned a profit of Rs 3.12 billion.

Global IME Bank, which merged with Janata Bank last year, has earned Rs 3.80 billion. Similarly, Nepal Investment Bank has earned a profit of Rs 2.57 billion. Himalayan Bank has made a profit of Rs 2.54 billion. Machhapuchhre Bank has made a profit of Rs 1.25 billion and Sanima Bank has made a profit of Rs 1.70 billion.

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