April 21: With the increase in bad loans, the profitability of national-level development banks has been affected. In the current fiscal year, only one out of eight development banks has recorded an increase in profit.

This has been revealed by the financial statements of third quarter of the current fiscal year published by the national-level development banks. According to information shared by the banks, the profit of eight development banks has decreased by 26.80 percent in the third quarter of the current fiscal year compared to the corresponding period of the last fiscal year.

The profit of the development banks last year was Rs 4.93 billion but the profit in current FY has dropped to Rs 3.61 billion. Due to the increase in bad loans, the profitability of development banks has been affected in the current year.

Compared to the previous year, the profit of only one of the eight development banks at the national level has increased in the current year. The profit of Shine Resunga Development Bank has increased by 14 percent in the current fiscal year. The bank which earned a proft of Rs 484.7 million last year recorded profit of Rs 554.5 million in the corresponding period of current fiscal year.

Similarly, the profit of Jyoti Bikas Bank has decreased the most by 60.91 percent. Last year, the bank earned a profit of Rs 515.7 million which dropped to Rs 201.6 million this year. In the current fiscal year, the bank’s profit has been affected by the increase in non-performing loans. The non-performing loan of the bank, which was 1.37 percent in the last fiscal year, has reached 3.89 percent in the current year.

Similarly, Muktinath Bikas Bank has earned the highest profit of Rs 806.2 million against Rs 1020 million during last year.