Commercial banks post handsome profits

COMMERCIAL banks recorded handsome profits last fiscal year. As of now, 11 banks have published their fourth-quarter reports of 2012-13, and net profits of

all the banks have increased compared to the fourth quarter of 2011-12. Bankers attributed the rise in profits to three factors—increment in the net interest income, foreign exchange earnings and write back of loans. The increment in the net profit, according to Himalayan Bank CEO Ashoke Rana, is also the reflection of stability in the financial sector. “Due to close monitoring of the central bank, commercial banks have become more responsible and focused on maintaining a good balance- sheet. This is why the results are coming good,” said Rana. Among the banks that have published their reports, Nabil Bank has posted the highest net profit. Last year too, Nabil had topped the chart in terms of net profits. The bank’s net profit has surged to Rs 2.22 billion from Rs 1.69 billion of 2011-12. Nabil is the first bank to cross the Rs 2 billion profit mark. Of the 11 banks, only Kumari Bank and Grand Bank posted a single-digit rise in profits. NMB Bank’s net profit increased five times—from Rs 55.45 million to Rs 360.39 million. Prime Commercial Bank’s profits surged by 78.06 percent to Rs 479.79 million in last fiscal from Rs 269.44 million of the previous year. In Grand Bank’s case, its net profit increased by 9.71 percent to Rs 200.53 million.