The banks which earned Rs 58.62 billion in net interest income during the review period of the last FY earned Rs 83.33 billion in the review period of the current FY.
During the period, the banks raised their spread rate to maintain their profit. Although the central bank directed banks to bring down the spread rate to 4.2 percent, they have raised the rate.
The banks took the step to maintain their profit after their bad debt increased, however, the banks whose bad debt increased tremendously could not increase their profit despite raising the spread rate.
NRB has directed banks to bring down their spread rate to 4 percent by the end of the current FY. before that, they are required to bring down the rate to 4.2 by the end of the third quarter.
However, the banks have raised the rate. The spread rate is directly linked to their income. If their spread rate increase, their income also increases, and vice versa. An increase in net interest income also boosts their profit which is the main reason for the banks to increase their spread rate.
At the same time, an increased spread rate is not a good sign for general customers. Depositors get low interest while the borrowers are required to pay more interest with the raised spread rate.
By the second quarter, Nabil Bank has earned the highest interest income of Rs 7.83 billion including that of the acquired NBB Bank. The interest income increased by 85 percent compared to the last FY.
Similarly, Global IME Bank becomes the runner-up with Rs 6.54 billion in interest income which is 20 percent growth.
Although the banks increased their net interest income, increase in bad debt has shadowed their net profit.
The average bad debt of the banks has reached 2.26 percent. In the last FY, the average bad debt was Rs 1.06 percent. The bad debt increased by double compared to the last FY which has also affected the net profit. 
