Commercial banks saw their profit growth rate fall last fiscal year.
Net profit growth rate of 28 commercial banks that have published their unaudited quarterly reports stands at just 10 percent, against 32 percent in 2012-13. The banks earned a profit of Rs 18.36 billion in 2013-14 against Rs 16.68 billion in fiscal year 2012-13.
Himalayan Bank and state-owned Rastriya Banijya Bank which have not published their unaudited financial reports of last fiscal year’s fourth quarter.
A senior official at the Nepal Rastra Bank said the cap on spread rate and low interest rate on banks’ investment in government securities amid excess liquidity contributed to slow profit growth. Besides, huge losses incurred by Grand Bank also contributed to the overall drop in profit growth.
According to its financial report, Grand Bank incurred a net loss of Rs 1.60 billion in last fiscal year, which according to the central bank official, was due to overexposure to the realty sector. Kist Bank, whose former CEO Kamal Gyawali faced charge of funds misappropriation, also lost Rs 240 million.
However, the number of banks earning more than Rs 1 billion profits has risen. Seven of the 28 banks publishing results entered the Rs 1-billion club in terms of net profit.
The banks are Nepal Investment Bank, Nabil, Everest Bank, Standard Chartered Bank, Global IME Bank, Agriculture Development Bank and Nepal Bank. Officials at Rastriya Banijya Bank and Himalayan Bank said they have earned more than Rs 1 billion.
Nabil Bank topped the chart in terms of net profit, Rs 2.73 billion. Global IME which have been merging many financial institutions, Nepal Bank and Himalayan Bank are the new entrants to the Rs 1 billion club. “Our net profit is Rs 1.1 billion,” said Himalayan Bank CEO Ashoke Rana. “It is the first time that we have earned more than Rs 1 billion.”
He, however, said the bank could have achieved the figure last year provided it was not asked to make cent percent provisioning of loans that went to National Trading. “Although the state-owned enterprise has been paying interest regularly, NRB has asked us to make cent percent provisioning,” said Rana. Himalayan has lent Rs 280 million to National Trading.
Sunrise Bank, Agriculture Development Bank, Bank of Kathmandu and Janata Bank are those which witnessed fall in their net profits last fiscal year.
source:the kathmandu post,17 august 2014
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Net profit growth rate of 28 commercial banks that have published their unaudited quarterly reports stands at just 10 percent, against 32 percent in 2012-13. The banks earned a profit of Rs 18.36 billion in 2013-14 against Rs 16.68 billion in fiscal year 2012-13.
Himalayan Bank and state-owned Rastriya Banijya Bank which have not published their unaudited financial reports of last fiscal year’s fourth quarter.
A senior official at the Nepal Rastra Bank said the cap on spread rate and low interest rate on banks’ investment in government securities amid excess liquidity contributed to slow profit growth. Besides, huge losses incurred by Grand Bank also contributed to the overall drop in profit growth.
According to its financial report, Grand Bank incurred a net loss of Rs 1.60 billion in last fiscal year, which according to the central bank official, was due to overexposure to the realty sector. Kist Bank, whose former CEO Kamal Gyawali faced charge of funds misappropriation, also lost Rs 240 million.
However, the number of banks earning more than Rs 1 billion profits has risen. Seven of the 28 banks publishing results entered the Rs 1-billion club in terms of net profit.
The banks are Nepal Investment Bank, Nabil, Everest Bank, Standard Chartered Bank, Global IME Bank, Agriculture Development Bank and Nepal Bank. Officials at Rastriya Banijya Bank and Himalayan Bank said they have earned more than Rs 1 billion.
Nabil Bank topped the chart in terms of net profit, Rs 2.73 billion. Global IME which have been merging many financial institutions, Nepal Bank and Himalayan Bank are the new entrants to the Rs 1 billion club. “Our net profit is Rs 1.1 billion,” said Himalayan Bank CEO Ashoke Rana. “It is the first time that we have earned more than Rs 1 billion.”
He, however, said the bank could have achieved the figure last year provided it was not asked to make cent percent provisioning of loans that went to National Trading. “Although the state-owned enterprise has been paying interest regularly, NRB has asked us to make cent percent provisioning,” said Rana. Himalayan has lent Rs 280 million to National Trading.
Sunrise Bank, Agriculture Development Bank, Bank of Kathmandu and Janata Bank are those which witnessed fall in their net profits last fiscal year.
source:the kathmandu post,17 august 2014
LINK
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