Development Banks Report Over Rs 4 Billion Profit in Eight Months

Kathmandu – Development banks in Nepal have collectively recorded a profit of Rs 4.18 billion in the first eight months of the current fiscal year 2080/81. This figure, published by Nepal Rastra Bank, marks a growth of 24.01 percent compared to the same period in the previous fiscal year, when the total profit stood at Rs 3.37 billion 63 million.

Among the eight national-level development banks, Garima Bikas Bank has continued to lead in profitability. The bank posted a profit of Rs 834.8 million during the review period, reflecting a 28 percent rise from the previous year. Muktinath Bikas Bank followed closely with a profit of Rs 787.8 million, an increase of 19.37 percent.

Other banks also saw notable growth in earnings. Shine Resunga Development Bank reported a profit of Rs 564.8 million, up by 8.04 percent, while Kamana Sewa Bikas Bank’s profit rose by 31.34 percent, reaching Rs 501.1 million. Mahalaxmi Bikas Bank earned Rs 421.5 million, up by 3.46 percent, and Shangri-La Development Bank achieved an impressive 89.16 percent surge in profit, amounting to Rs 406.6 million.

However, not all banks shared in the sector’s overall growth. Jyoti Bikas Bank and Lumbini Bikas Bank were positioned at the bottom of the list in terms of profitability. Lumbini posted a profit of Rs 360.13 million, while Jyoti earned only Rs 310.19 million during the eight-month period. According to banking analysts, rising volumes of non-performing loans have been a major challenge for these institutions, directly impacting their profit margins.