Kathmandu. There is a huge difference in the profit of commercial banks before and after the audit.

There has been a huge difference in the profit of commercial banks before and after the audit due to the lack of loan loss as per the regulatory provisions of the Nepal Rastra Bank while publishing the raw financial statements.

Of the 20 companies, 19 have published their financial statements after the audit. NIC Asia Bank has not disclosed its details. Of the 19 banks, the profit of all the banks except Sanima Bank and Nepal SBI Bank has decreased.

The average profit of 19 banks has decreased by 20.55 percent. The bank’s net profit was Rs 71.34 billion before the audit.

After the audit, the company stood at Rs 56.68 billion or a decline of 20.55 per cent to Rs 56.68 billion.

According to NRB sources, the decrease in profit is said to be due to the low amount to be allocated for loan loss management while publishing the financial statements of the banks.

It is said that the reduction in profit will expose the issues of corporate governance, transparency in the banking sector and how it misleads investors. There is also a growing suspicion that the financial statements will be made on the basis of estimates.

Nepal Rastra Bank does not approve the raw financial condition of the audit. The audited details have to be approved.

Banks and financial institutions should get the financial statements audited within 6 months of the end of the fiscal year, get final approval from the Rastra Bank and hold the Annual General Meeting.

Sanima Bank’s net profit has increased by 0.05 percent after the auditing of other banks. Similarly, the profit of Nepal SBI Bank increased by 0.46 percent.

Similarly, Nabil Bank’s profit after the audit decreased by 16.91 percent, Nepal Investment Mega Bank by 35.88 percent, Global IME Bank by 18.19 percent, Prabhu Bank by 83.97 percent and Everest Bank by 1.59 percent.

Likewise, Laxmi Sunrise Bank fell by 10.16 per cent, Prime Bank by 20.47 per cent, Rastriya Banijya Bank by 25.70 per cent, Nepal Bank by 18.42 per cent, Siddhartha Bank by 0.85 per cent, NMB Bank by 13.02 per cent, Standard Chartered Bank by 0.55 per cent, Kumari Bank by 14.02 per cent, Machhapuchchhre Bank by 6.35 per cent, Himalayan Bank by 91.42 per cent and Citizens Bank by 0.48 per cent.