Kathmandu. The profits of Nepalese banks’ have shrunk due to the COVID-19 pandemic. The pandemic has increased bad loans as well as income which has affected the profit of the banks.

In the first quarter of the current fiscal year (July to mid-October), the profit of some banks has decreased by more than 50 percent compared to the previous year. Fifteen banks made their financial statements public on Friday, out of which only few have gained profit. According to the financial statements published by the banks, the profit of Nepal SBI Bank has declined by 54 percent.

The bank, which made a profit of NRs. 454.3 million in the first quarter of last year, has made a profit of only NRs. 200 million in the same period of the current fiscal year.

Similarly, the profits of Himalayan Bank, Standard Chartered Bank, Nepal Investment, Sunrise, Century, Rastriya Banijya Bank, Krishi Bikas, SCC and Laxmi Bank have declined till September.

NB, Mega and NMB Bank have increased their profits so far in this period. The amount to be allocated to risk management seems to have affected the profit, even though the number of bad loans had increased during the pandemic. Although it has been analyzed that the banking and financial sector has not been largely affected by the pandemic, the financial statements of the first quarter have reflected that the financial sector will be affected in the coming days.