Summary：**Commercial banks surge to Rs 64.56B profit, Nabil Bank tops the chart** *Kathmandu, July 12* – Ne

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**Commercial banks surge to Rs 64.56B profit, Nabil Bank tops the chart**
*Kathmandu, July 12* – Nepal’s banking sector posted a robust performance in the first eleven months of FY 2024‑25, with the twenty commercial banks collectively earning a net profit of Rs 64.56 billion. The figure marks a 19.62 percent increase—equivalent to an additional Rs 10.59 billion—over the Rs 53.97 billion recorded during the same period last year, according to data released by Nepal Rastra Bank.

### Introduction
The uptick reflects stronger lending activity, improved asset quality, and a favorable interest‑rate environment that has allowed banks to widen their net interest margins. While macro‑economic headwinds such as inflationary pressure and external debt servicing persisted, the sector’s resilience has been bolstered by prudent risk‑management practices and a gradual recovery in key industries like tourism and remittances.

### Key Developments
Nabil Bank emerged as the top performer, contributing roughly Rs 9.2 billion to the aggregate profit, a 22 percent rise year‑on‑year. Its growth was driven by a surge in retail lending, particularly housing and personal loans, coupled with a successful digital‑banking push that attracted younger customers. Other notable contributors included Everest Bank, which saw a 15 percent profit jump after expanding its SME portfolio, and Himalayan Bank, whose profit rose 18 percent due to higher fee‑based income from trade finance and remittance services.

### Industry Analysis
Analysts attribute the sector’s overall profit expansion to three main factors:

1. **Interest‑rate spread management** – With policy rates