Nepal, Oct. 14 -- Nepal's commercial banks recorded a 7.32 percent increase in combined net profits during the first two months of Fiscal Year (FY) 2026/27, despite sluggish credit demand, excess liquidity and mounting concerns over bad loans.

According to the records with Nepal Rastra Bank (NRB), 20 commercial banks earned a total net profit of Rs 17.81 billion during the period between mid-July and mid-September, compared to Rs 16.59 billion during the same period last FY.

As per bankers, the profit growth was largely affected by their recovering outstanding loans, increased short-term investments and rising non-interest income. Expanding digital banking services, remittance inflows and increased import-related transactions also cont...