February 26: In the second quarter of the current FY, 28 commercial banks that are listed in Nepal Stock Exchange (NEPSE) have earned Rs 20.84 billion net profit. The banks earned Rs 14.50 billion net profit during the corresponding period of the last FY. The raise in the net profit of the commercial banks is attributed to increase in their operating profit, net interest income and paid-up capital as well.

During the period, the net profit of six banks surpassed Rs 1 billion. In the corresponding period of the last FY, net profit of four banks exceeded Rs 1 billion. According to the unpublished  second quarter financial reports of the current FY, Nepal Bank has earned maximum profit. The bank earned net profit of Rs 1.89 billion which is 80.80 per cent more than the corresponding period of the last FY. The growth is attributed to the high growth in operating profit of the bank. In the review period, the operating profit of the bank increased by 114.99 per cent to Rs 1.38 billion. Similarly, Nabil Bank, Nepal Investment, Rastriya Banijya Bank, Prabhu and Himalayan Bank also earned Rs 1 billion exceeding net profit.

As per the growth rate, net profit of Prabhu and Agricultural Development Bank has increased maximum.  In the review period, Prabhu Bank increased its profit by 174.21 per cent and Agricultural Development Bank increased its profit by 133.97 per cent. Along with the increase in operating profit and net interest income, recovery of Rs 1 billion bad debt raised the net profit of Prabhu Bank significantly. Meanwhile, operating profit of Agricultural Development Bank increased by 158.18 per cent during the period.

In the first six months of the current FY, the operating profit of Himalayan Bank has increased by 503.4 per cent to Rs 7.60 billion from Rs 1.26 billion of the corresponding period of the last FY. Among the 28 banks, Nepal Credit and Commerce Bank raised its net interest income by 104.06 per cent.