Commercial Banks’ Profit Drops to Rs. 19.37 Billion in Four Months, Gen-Z Unrest Cited as Key Pressure

Commercial banks in Nepal earned a combined net profit of Rs. 19.37 billion in the first four months of the current fiscal year, significantly lower than the profit posted during the same period last year. According to Nepal Rastra Bank (NRB), the decline is closely linked to the economic slowdown triggered by the Gen-Z movement in the second month of the fiscal year, which weakened loan demand and disrupted banking transactions.

NRB’s latest data for mid-Kartik of FY 2082/83 shows that banks’ cumulative profit fell from Rs. 22.29 billion last year to Rs. 19.37 billion this year—a contraction of nearly Rs. 3 billion. The regulator notes that most banks had already reported weaker earnings in the first quarter, and the trend has persisted into the fourth month.

Despite the overall slowdown, Global IME Bank remains the strongest performer. The bank posted a profit of Rs. 2.51 billion, registering an 18.9% increase compared with the corresponding months of the previous year. Global IME had earned Rs. 2.11 billion in the same period last fiscal year, making it the only major bank to report such robust growth.

Nabil Bank ranked second, with a profit of Rs. 2.46 billion, down from Rs. 2.69 billion last year. The drop reflects broader pressure on interest income and reduced credit expansion following the mid-year economic disruptions.

NRB’s rankings place Prime Commercial Bank, Everest Bank, NMB Bank, Kumari Bank, and Rastriya Banijya Bank in the third to seventh positions respectively. Prime Bank earned Rs. 1.58 billion, Everest Bank Rs. 1.51 billion, NMB Rs. 1.27 billion, Kumari Bank Rs. 1.18 billion, and Rastriya Banijya Bank Rs. 1.13 billion during the review period.

Thirteen banks posted profits below Rs. 1 billion, with Citizens Bank recording the lowest profit at just Rs. 164 million. The government-owned Agriculture Development Bank reported a modest Rs. 74.9 million profit, signaling operational strains within public-sector institutions.

Among the banks earning under a billion, Standard Chartered (Rs. 915 million), Himalayan Bank (Rs. 823 million), Nepal Bank (Rs. 809 million), Sanima (Rs. 779 million), Prabhu (Rs. 737 million), Nepal SBI (Rs. 672 million), Siddhartha (Rs. 662 million), Nepal Investment Mega (Rs. 630 million), Laxmi Sunrise (Rs. 628 million), and Machhapuchchhre (Rs. 609 million) also reported subdued earnings.

Economic analysts interpret the trend as a warning signal: while Nepal’s banking sector remains capital-strong, profit compression highlights weakening private-sector borrowing and cautious consumer spending. Unless economic activity rebounds in the coming quarters, the profitability gap between larger and smaller banks may widen further, they say.