November 23: The coronavirus pandemic has affected the entire banking sector of the country and has impacted the net profit of development banks. Out of 18 development banks, the net profit growth rate of seven development banks in the first quarter of the current fiscal year has been negative as compared to the previous fiscal year.

According to the financial report of the first quarter made public by all the development banks, the total net profit till September was Rs 902.7 million while they made a profit of Rs 1.20 billion in the previous fiscal year. Compared to last year, the total net profit growth rate of development banks has shrunk by 25 percent. Three development banks have incurred net losses while the distributable profits of seven banks have turned negative.

As the profit growth rate of Jyoti, Garima, Exel, Shangrila, Shine Resunga, Corporate, and Karnali Development Bank has been lower than last year, the overall net profit of the development banks has shrunk by about 26 percent. Despite the overall contraction in the bank's profit, the profit growth rate of the remaining 11 development banks are encouraging.

Meanwhile, Muktinath Development Bank has made the highest profit among the development banks. The bank has managed to earn a net profit of Rs 294.159 million in the first quarter. In the corresponding period of the previous year, it earned a profit of Rs 228.7 million. Compared to last year, the bank's profit has increased by 22.23 percent. The distributable profit of the bank is Rs. 152.1 million.

Pradyumna Pokharel, CEO of Muktinath Development Bank, informed that the bank has managed to earn net profit due to the increase in interest income.