During the first half of the current fiscal year, commercial banks posted an average return on equity (ROE) of 8.25%, up slightly from 8.02% in the same period last year. Nabil Bank led the sector with 14.54%, while NIC Asia Bank recorded the lowest at 0.90%. Among 20 banks, 10 experienced a decline in ROE, including Everest and Standard Chartered. Bankers noted that low profitability, rising non-performing loans, and reduced credit flows have prompted some promoters to exit the sector, with investors increasingly diverting capital to more lucrative industries.
