January 25: The net profit of eight development banks has increased by 16.87 percent till the second quarter of the current fiscal year 2021/22.

According to the financial statements released by the development banks, Garima, Mahalakshmi, Lumbini, Muktinath, Jyoti, Kamana Seva, Shine Resunga, and Shangrila development banks have earned a profit of Rs 3.20 billion. In the corresponding period of the last fiscal year, the profit of these banks was Rs 2.73 billion.

Although the profit of these eight development banks has increased, the distributable profit has decreased. The distributable profit of Kamana, Jyoti and Muktinath development banks has declined heavily  as compared to the second quarter of the last fiscal year. These eight development banks had earned a total of Rs 174 billion distributable profit in the last year which has decreased to Rs 169 billion this year.

The profit of Muktinath Development Bank, which is leading among the eight most profitable development banks, has decreased by 2.14 percent compared to last year. The bank has raised Rs 602 million profit until the second quarter of the current fiscal year against  Rs 615 million in the same period of last year. 

Garima Development Bank is the second most profitable development bank. It has earned a profit of Rs 492 million, an increase from Rs 393 million compared to the same period of last year. The bank's profit has increased by 25.25 percent until the second quarter of the current fiscal year.

Likewise, Mahalakshmi Development Bank's profit has increased by 31.55 percent against the corresponding period of last fiscal year. Compared to the two quarters of the last fiscal year, the profit of Lumbini Development Bank has increased by 34.31 percent until the second quarter of the current fiscal year. It had earned a profit Rs 261 million in the corresponding period of the previous year which has increased to Rs 351 million in the current fiscal year.

The profit of Shine Resunga Development Bank, Jyoti Development Bank, Shangrila Development Bank has increased by 33.59 percent, 12.57 percent, and 58.87 percent respectively. Meanwhile, the profit of Kamana Sewa Development Bank has decreased by 11.89 percent. It had earned a profit of Rs 397 million until the second quarter in last year which has decreased to Rs 343 million in the review period of the current fiscal year.

The distributable profit of Mahalakshmi Development Bank has increased by 120.54 percent. It had made a profit of Rs 124.7 million in the review period of last year which has increased to Rs  275 million in the current fiscal year. 

Similarly, Lumbini Development Bank has made a distributable profit of Rs 249 million, an increase of 52.51 percent. Shangrila Development Bank, Shine Resunga and Garima Development Bank have made a distributable profit of Rs 184 million, Rs 218 million and Rs 356 million respectively. All these banks witnessed a growth in the profit to be distributed in the review period of the current fiscal year. It had earned a profit of Rs 271 million in the review period which declined to Rs 967 million until the second quarter of the current fiscal year.

Among the eight national level development banks, the distributable profit of three banks has declined in the current fiscal year. Kamana Sewa Development Bank has witnessed a sharp decline by 64.41 percent in the distributable profit. Likewise, Muktinath and Jyoti Bikash Bank have witnessed a decline by 57.72 percent and 36.20 percent respectively.