Jan 26, Kathmandu- The base rate has increased along with the profit of commercial banks. According to the banks' second-quarter financial statements, the base rate has increased by 1.16 percentage points compared to the previous year.

Due to lack of liquidity, the cost has increased as banks have increased interest rates on deposits and the base rate has also increased. The base rate of Civil Bank is highest at 9.74 percent. The base rate of NIC Asia Bank is 9.44 percent, NCC Bank is 9.15 percent, Citizens Bank is 9.8 percent and other banks are less than 9 percent.

The base rate is the main basis for determining the interest rate of a bank loan. Banks set interest rates by adding a premium of zero to 5 percent to the base rate. No bank or financial institution is allowed to charge an interest rate higher than the base rate.

Profits Have Rise By 10 Percent

Commercial bank's profits of have also increased during this period. The net profit of banks increased by 10.10 percent compared to the same period of the previous fiscal year. Banks that earned a profit of Rs 31.73 billion up to mid-January of the last fiscal year have earned a total net profit of Rs 34.21 billion in the same period of the current fiscal year.

The highest profit has been made by Global IME Bank. The bank has earned a net profit of Rs 2.66 billion as of mid-January. This is 15.04 percent more than the corresponding period of the previous fiscal year. 

Among the  27 commercial banks, Civil Bank has the lowest profit. Civil Bank has earned a net profit of Rs. 504 million during the period. As of mid-January, Global IME Bank has earned a net profit of Rs 2.66 billion, NIC Asia Rs 2.40 billion, and Nabil Bank Rs 2.18 billion.