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Net profits of commercial banks have rebounded in the second quarter of the current fiscal year 2025/26, supported by improving loan recovery, easing costs of funds, and a gradual pickup in economic activity. 

Financial statements of the 20 commercial banks until mid-January of the current fiscal shows that while banks continue to face challenges such as excess liquidity, weak credit demand, political uncertainty and a sluggish capital market, key financial indicators have begun to improve.

Commercial banks collectively earned a net profit of Rs 30.59bn in the second quarter. This represents an increase of 11.52 percent compared to the same period of the previous fiscal year, when Class ‘A’ banks had posted a combined profit of Rs 27.43bn.

Bankers attribute the overall improvement primarily to better loan recovery and a gradual revival in economic activity. They say repayment behavior has improved after a weak first quarter marked by floods, landslides and social unrest, which has helped banks stabilize earnings.

Nabil Bank emerged as the largest profit earner in the review period as its net profit surged by 46.71 percent to Rs 4.75bn by mid-January. Global IME Bank followed as the second-largest profit maker, with earnings rising 6.5 percent to Rs 3.25bn.

Kumari Bank, however, recorded the most dramatic turnaround, posting a staggering 886 percent jump in profit to Rs 2.72bn. In the same period last fiscal year, the bank had reported net profit of only Rs 275.7m. 

Everest Bank reported a modest 2.04 percent increase in profit to Rs 2.11bn, while Prime Bank saw its earnings rise by 9.27 percent to Rs 2.04bn. State-owned Rastriya Banijya Bank more than doubled its profit, posting a 132 percent increase, to Rs 1.77bn.

In contrast, several banks saw profits decline. NMB Bank’s profit fell 17 percent to Rs 1.64bn, while Nepal Investment Mega Bank recorded a 43 percent drop to Rs 1.61bn. Siddhartha Bank’s operating profit rose significantly, increasing from Rs 755.4m to Rs 1.96bn. Sanima Bank posted a 16.67 percent rise to Rs 1.39bn, while Standard Chartered Bank’s profit jumped 150 percent to Rs 1.32bn. Himalayan Bank’s profit declined by 15 percent to Rs 1.29bn.

Nepal SBI Bank recorded a 14.56 percent increase to Rs 1.03bn, while Machhapuchchhre Bank’s profit grew 25 percent to Rs 1.01bn. Prabhu Bank, however, saw its profit fall by 24 percent to Rs 1.01bn.

Among laggards, the government-owned Agricultural Development Bank reported a 26 percent decline in profit to Rs 707.4m. Citizens Bank’s profit dropped by 45 percent to Rs 358.8m, and NIC Asia Bank’s earnings fell by 13.54 percent to Rs 131.1m. 

Laxmi Sunrise Bank was the only commercial bank to remain in the red in the second quarter. According to the bank, it recorded a net loss of Rs 273.6m during the review period. Overall, 12 commercial banks increased their profits in the second quarter, while seven reported declines and one posted a loss.

Lower cost of funds has also supported bank profitability. With ample liquidity in the banking system, deposit rates have eased which reduced interest expenses of banks. At the same time, regulatory forbearance provided by Nepal Rastra Bank, particularly facilities for loan restructuring and rescheduling, has helped banks manage non-performing loans more effectively.

Rising profits have begun to restore confidence in the banking sector. Customers are finding it easier to repay loans, while banks are gradually becoming more comfortable extending fresh credit, particularly to sectors such as hotels, transport and small businesses, where demand is showing early signs of recovery.

A 132-kV transmission line has come into operation in Karnali Province, marking the first transmission line operated by the Nepal Electricity Authority (NEA) in the province.

According to NEA Managing Director Hitendra Dev Shakya, the launch of the 132-kV Surkhet transmission line under the Kohalpur–Surkhet–Dailekh Transmission Line Project is expected to accelerate economic growth in the province.

Karnali had long been facing problems such as system overload, frequent power supply disruptions, and low voltage, as it relied solely on a 33-kV transmission line. With access to high-capacity transmission services, the province is now expected to witness industrial development with increased power consumption.

Project Chief Rabi Kumar Chaudhary said that construction of the approximately 52-kilometre Kohalpur–Surkhet section has been completed as directed by the NEA. 

He added that work on the second phase, covering the Surkhet–Dailekh section, will now be intensified.

The price of gold has dropped by Rs 13, 400 per tola in the domestic market on Monday. .  

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 286, 600 per tola today.  

Similarly, the price of silver has dropped by Rs 300 and is being traded at Rs 5, 200 per tola.

Nepal welcomed 92,573 foreign tourists in the first month of the year 2026. 

According to the Nepal Tourism Board (NTB), the number of foreign travelers in January this year is 15.7 percent more compared to January 2025.

The number of Indian tourists visiting Nepal in a month was the highest among visitors. 

The NTB shared that 26,624 tourists arrived in Nepal in January. 

Likewise, 9,101 tourists arrived in Nepal from China, 8,406 tourists arrived from the USA and 4,957 tourists from Australia. 

It is shared that SAARC countries comprised 39.3 percent of total visitors in the review period, while 26.1 percent tourists visited Nepal from other Asian countries, 12.3 percent from Europe, 10.8 percent from America and 5.7 percent from Oceania.