January 22: The increase in bad loans has affected the profitability of banks in the second quarter of the current fiscal year. Likewise, the banks facing liquidity crunch have also been affected due to the Covid-19 pandemic and the Russia-Ukraine war.

As of January 21, a total of 20 banks that published their unaudited financial statements have earned a net profit of Rs 29.87 billion. It is only 1.85 per cent more than the profit earned during the corresponding period of the last fiscal year when the banks made a profit of Rs 29.33 billion. During the last fiscal year, the profit of the banks increased by 10 per cent compared to the previous year. 

Nepal Investment and Mega Bank merged with each other to start integrated business as Nepal Investment Mega Bank while Kumari Bank and NCC Bank which merged with each other are yet to publish their financial statements. Among the banks that have published their financial statements, the profit of a dozen banks has increased compared to last year. 

The profit of Everest Bank has increased the highest by 89.29 per cent. The profit of eight banks has decreased compared to last fiscal year. The net profit of the Agriculture Development Bank has decreased by 109 per cent resulting in a loss of Rs 128.9 million.

Similarly, Global IME Bank’s profit increased by 4.47 per cent, while the profit of Bank of Kathmandu before the merger decreased by 4.37 per cent. BoK’s profit of Rs 452.5 million has been adjusted with the profit of the current fiscal year of Global IME Bank.