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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
<p> </p>
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'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
<p> </p>
<p> </p>
<p> </p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
<p> </p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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<p> </p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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November 5: The effects of slowdown in economic activities due to the Covid-19pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.
According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.
The average bad loan of commercial banks, which was 1.71 percent in the first quarter of the last fiscal year, has reached 3.40 percent in the first quarter of this year.
Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.
The profit of banks during last year increased by 5.94 percent in the first quarter, 11.10 percent in the second quarter and 11.67 percent in the third quarter. In the fourth quarter, the profit growth rate reached 24.93 percent.
However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by 19 percent in the first quarter of the current year.
By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs 13.47 billion in net profit. During this period, the profit of 12 banks decreased while that of eight banks increased.
The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.
The average bad loans of banks were 1.71 percent in the first quarter of last year, 2.31 percent in the second quarter and 3.04 percent in the third quarter. Bad loans were reduced to 2.8 percent in the fourth quarter of last fiscal year, but it reached 3.40 percent in the first quarter of the current fiscal year.
The non-performing loans of Agriculture Development Bank reached the highest at 5.33 percent, followed by Kumari Bank at 4.89 percent, Nepal Investment Mega’s NPL stood at 4.83percent in the review period, followed by Laxmi Sunrise Bank at 4.69percent, Himalayan Bank at 4.67percent and Global IME Bank at 4.38 percent.
Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened.
Banks have earned a distributable profit of Rs 17.26 billion in the first quarter of the current year. This profit is 61 percent less than compared to the same period of last fiscal year.
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'title' => 'Profit of Banks Falls, Bad Debt Rises',
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'title' => 'Profit of Banks Falls, Bad Debt Rises',
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'title' => 'Profit of Banks Falls, Bad Debt Rises',
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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'summary' => 'November 5: The effects of slowdown in economic activities due to the Covid-19 pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.',
'content' => '<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">November 5: The effects of slowdown in economic activities due to the Covid-</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">pandemic and the Russia-Ukraine war have now started to be seen in the financial statements of banks.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">According to the unaudited financial statements issued by commercial banks, there has been a significant decline in the profits of banks in the first quarter of the current fiscal year (FY), while bad debts have increased.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loan of commercial banks, which was </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the last fiscal year, has reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of this year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Although the profit growth rate decreased in the first, second and third quarters of last year, there was an improvement in the fourth quarter. Similarly, bad loans, which had been rising continuously since the beginning of last year, also improved by the end of the year.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of banks during last year increased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.94</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.10</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">11.67</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. In the fourth quarter, the profit growth rate reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">24.93</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">However, the improvement was short lived. In the first quarter of the current fiscal year, the performance of banks has not been satisfactory. The profit of banks decreased by </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">19</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">By the end of the first quarter of the current fiscal year, commercial banks have earned a total of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">13.47</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> billion in net profit. During this period, the profit of </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">12</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> banks decreased while that of eight banks increased. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The profit of Agriculture Development Bank was negative. With the increase in bad loans of the banks, the amount to be set aside for risk management has increased, and the profit has been affected.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The average bad loans of banks were </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">1.71</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of last year, </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.31</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the second quarter and </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.04</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the third quarter. Bad loans were reduced to </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">2.8</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the fourth quarter of last fiscal year, but it reached </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">3.40</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent in the first quarter of the current fiscal year. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">The non-performing loans of Agriculture Development Bank reached the highest at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">5.33</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, followed by Kumari Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.89</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent, Nepal Investment Mega’s NPL stood at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.83</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent in the review period, followed by Laxmi Sunrise Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.69</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent, Himalayan Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.67</span></span> <span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent and Global IME Bank at </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">4.38</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif""> percent.</span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Bad loans have increased along with the decline in economic activities, affecting the recovery of banks' loans. The increase in bad loans indicates that risks are increasing in the financial sector. As the net profit of commercial banks has decreased, the distributable profit to their shareholders has also weakened. </span></span></span></span></p>
<p><span style="font-size:12pt"><span style="font-family:"Times New Roman","serif""><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">Banks have earned a distributable profit of Rs </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">17</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">.</span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">26 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">billion in the first quarter of the current year. This profit is </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial Unicode MS","sans-serif"">61 </span></span><span style="font-size:15.0pt"><span style="font-family:"Arial","sans-serif"">percent less than compared to the same period of last fiscal year.</span></span></span></span></p>
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simplexml_load_file - [internal], line ??
include - APP/View/Elements/side_bar.ctp, line 133
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::_renderElement() - CORE/Cake/View/View.php, line 1224
View::element() - CORE/Cake/View/View.php, line 418
include - APP/View/Articles/view.ctp, line 391
View::_evaluate() - CORE/Cake/View/View.php, line 971
View::_render() - CORE/Cake/View/View.php, line 933
View::render() - CORE/Cake/View/View.php, line 473
Controller::render() - CORE/Cake/Controller/Controller.php, line 968
Dispatcher::_invoke() - CORE/Cake/Routing/Dispatcher.php, line 200
Dispatcher::dispatch() - CORE/Cake/Routing/Dispatcher.php, line 167
[main] - APP/webroot/index.php, line 117