Nepal, Jan. 30 -- Commercial banks in Nepal posted an 11.51 percent rise in net profits in the first half of the current fiscal year, buoyed by improved loan recovery, despite a sharp increase in provisions against non-performing loans (NPLs).According to financial statements released by 20 commercial banks, the sector earned a combined net profit of Rs 30.59 billion between mid-July 2025 and mid-January 2026, up from Rs 27.43 billion in the same period of the previous fiscal year. This marks an increase of Rs 3.16 billion.

Bankers attributed the growth mainly to higher net interest income and commission earnings. Nepal Bankers' Association President Santosh Koirala said loan recovery improved notably in the second quarter of the current...