Kathmandu. Compared to the previous financial year, there has been a slight improvement in the returns given by banks to shareholders in the last financial year.

According to the financial position published by the banks till mid-June, the roe of the bank has increased by 22.28 percent on an average till mid-June. The bank’s self-capital return (ROE) stood at 8.15 per cent as of Mid-July of the previous fiscal year. It has reached 9.96 percent in the same period of the last fiscal year. Out of the 20 banks operating during this period, 10 banks have increased and 10 banks have decreased.

ROE is the return given by the bank on the investment made by the investor. Such returns have increased compared to the previous year. Everest Bank has the highest ROE at 16.44 per cent as of Mid-July. It has increased by 6.96 percent in the same period of the previous fiscal year. It was 15.37 in the same period of the previous fiscal year.

NIC Asia Bank has the lowest ROE at 0.55 per cent. This has decreased by 77.37 percent compared to the same period of the previous fiscal year. It was 2.43 percent in the same period of the previous fiscal year.

According to the data published by the banks, 12 banks and eight banks have roe of 8 percent in double digits.

Prabhu Bank’s ROE has shown a lot of improvement till mid-July. RoE has increased by 867.30 percent to 15.38 percent from 1.59 percent in mid-July of the previous fiscal year. Similarly, the ROE of Agriculture Development Bank increased by 127.15 percent to 14.81 percent, Machhapuchchhre Bank by 71.23 percent to 11.13 percent, NMB Bank by 26.90 percent to 10.66 percent, Nepal Investment Mega Bank by 44.61 percent to 10.60 percent.

Similarly, Standard Chartered Bank declined by 24.59 percent to 14.32 percent, Prime Bank by 3.17 percent to 12.51 percent, Sanima Bank by 9.35 percent to 11.73 percent, Nabil Bank by 1.44 percent to 11.64 percent and Siddhartha Bank by 6.73 percent to 11.50 percent. Similarly, Global IME Bank declined by 13.42 percent to 9.61 percent, Nepal SBI Bank by 21.38 percent to 9.01 percent, Citizens Bank by 10.89 percent to 5.81 percent and Rastriya Banijya Bank by 55.14 percent to 2.40 percent.

Although the bank’s ROE has increased compared to the previous year, it has not yet reached double digits. As the bank’s ROE is declining, old shareholders have started withdrawing from the banking sector. Over the last few years, the bank’s investment returns have been declining rather than increasing. This has also disappointed the old investors in the banking sector.