Commercial banks pay nearly Rs 4 trillion in interest to customers

KATHMANDU, AUGUST 12: Commercial banks in the country together paid nearly four trillion rupees in interest to their savings and deposit customers in the last fiscal year. According to their recently published financial statements, a total of Rs 396 billion, 730 million, and 882 thousand was paid in interest to such customers in 2023/24. This amount is 8.54% higher compared to the previous fiscal year.

Similarly, all 20 banks had total deposits worth Rs 5 trillion, 665 billion, 481 million, and 100 thousand during the review period. Likewise, the net interest income of banks stood at Rs 192 billion, 128 million, and 500 thousand. This is the primary source of income for banks.

In the review year, Global IME Bank recorded the highest interest expenses. The bank paid interest amounting to Rs 34 billion, 823 million, and 600 thousand.

In the second place is Nabil Bank. This bank paid interest amounting to Rs 30 billion, 960 million, and 111 thousand.

 Nepal Investment Mega Bank occupies the third position. According to the data, this bank's interest expense was Rs 28 billion, 484 million, and 600 thousand.

The data shows that NIC Asia paid Rs 27 billion, 757 million, and 847 thousand; Kumari Bank paid Rs 27 billion, 695 million, and 480 thousand; Himalayan Bank paid Rs 23 billion, 958 million, and 96 thousand; and Laxmi Sunrise Bank paid Rs 23 billion, 453 million, and 20 thousand.

Similarly, Prabhu Bank paid Rs 20 billion, 11 million, and 285 thousand; Rashtriya Banijya Bank Rs 19 billion, 713 million, and 525 thousand; NMB Bank  Rs 18 billion, 333 million, and 91 thousand;  and Prime Commercial Bank Rs 17 billion, 841 million, and 281 thousand;

Likewise, Siddhartha Bank paid Rs 17 billion, 751 million, and 257 thousand; Agricultural Development Bank Rs 17 billion, 170 million, and 669 thousand; Nepal Bank Rs 16 billion, 458 million, and 50 thousand; Everest Bank Rs 14 billion, 794 million, and 367 thousand; and Sanima Bank  Rs 14 billion, 542 million, and 368 thousand.

In the same vein, Citizens Bank paid Rs 13 billion, 995 million, and 846 thousand; Nepal SBI Bank Rs 12 billion, 821 million, and 574 thousand; Machapuchhre Bank  Rs 11 billion, 610 million, and 501 thousand; and Standard Chartered Bank Rs 5  billion, 925 million, and 830 thousand in interest expenses.