Profit Growth of 53 precentage on 24 Commercial Banks

This current fiscal year 2073 the commercial banks profited 8 arab 87 crore 44 lakh rupee. According to detail description published on mid-September, this year’s profit of two dozen commercial banks is 53.29 percent more than last year. The government owned bank NRB and private operated banks: Janata Bank, Civil Bank and Century commercial banks description haven’t been published until Tuesday 15 November 2016. Under NRB policy, within one month of end of fiscal year the detail audit report needs to be published.

All commercial banks profit is relatively increased. The profit of the past fiscal year of these banks was 5 arab 57 crore 77 lakh. Banks were continuously facing the tussle during past few year are now steady. NRB has policy to increase 4 times more of the paid-up capital target to Banks and financial institution but banks haven’t shown drastic changes on their side. Similarly return-in-investment has decreased whereas compared to profit; net-worth of banks is also decreasing. Now net-worth of banks has increase in 44 percent only.

Due to Bank’s improvement on interest income and other operational income, the average profit has also been increased said Sanima Bank CEO Bhuvan Kumar Dahal. ‘The profit has increase even when Return-on-investment of banks has decreased’ he said ‘many banks are getting on merger and acquisition procedure has also played important role on increase in profit.’ Although foreign remittance hasn’t been much of improvement but interest and other operational income has increased said Dahal. ‘Although banks’ net profits have increased compared to the corresponding period of the last fiscal year, the situation is not ideal,” said Dahal. “The profits have not justified the increased paid-up capital of banks and the return on equity of a majority of the banks has gone down.’

‘Due earthquakes and unofficial blockade imposed by India, the economic activities were pretty low in the first quarter of the last fiscal year. Hence, the lending too was low,’ said Dahal. ‘But things have changed and banks lent aggressively during the first quarter of this fiscal year which resulted in the profit surge.’