Kamana Sewa Bikas Bank Limited (KSBBL) has reported an unaudited net profit of NPR 19.76 crore for the first quarter of the fiscal year 2025/26, marking an impressive 12.92% growth compared to NPR 17.50 crore earned during the same period last year. The consistent rise in profitability, despite persistent economic headwinds and tight liquidity conditions, reflects the bank’s disciplined financial management, robust revenue generation, and forward-looking digital expansion strategies.
Core Financial Performance and Profit Drivers
The bank’s growth momentum was primarily fueled by a significant rise in core operating income, underscoring its operational efficiency and strategic asset deployment.
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Interest Income surged to NPR 6.18 billion, up from NPR 5.19 billion in the same period last fiscal year. This jump highlights KSBBL’s focus on high-yielding loan portfolios and optimized interest rate spreads.
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Operating Profit rose proportionately to NPR 2.85 billion, reflecting strong core earnings before taxes and non-operating adjustments.
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Fee and Commission Income reached NPR 844.21 million, maintaining a healthy non-interest income stream that further strengthened overall profitability.
Balance Sheet Strength and Capital Position
By the end of the first quarter, the bank’s total assets had reached NPR 71.63 billion, indicating steady balance sheet growth backed by prudent expansion strategies. KSBBL’s capital structure remains sound, ensuring long-term stability and compliance with regulatory requirements.
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Paid-up Capital: NPR 3.86 billion
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Reserves: NPR 1.88 billion
These figures demonstrate the bank’s strong capital adequacy and readiness to sustain future growth while maintaining resilience against potential risks.
Key Performance Indicators and Asset Quality
Kamana Sewa Bikas Bank’s business volumes reflect continued customer trust and steady market penetration:
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Total Deposits: NPR 63.04 billion
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Loans and Advances: NPR 51.44 billion
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Loan-to-Deposit Ratio (LDR): 86.35%
The LDR figure indicates efficient use of deposit funds for revenue generation while maintaining healthy liquidity within Nepal Rastra Bank’s (NRB) prescribed limits.
Earnings Metrics:
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Earnings Per Share (EPS): NPR 20.46 (annualized)
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Net Worth Per Share: NPR 152.31
While maintaining strong profitability, the bank’s Non-Performing Loans (NPLs) stood at 4.41%, slightly higher than the previous year. However, KSBBL continues to implement proactive provisioning and recovery measures to ensure asset quality remains stable over time.
Digital Innovation and Customer-Centric Growth
Kamana Sewa Bikas Bank continues to pioneer digital transformation within Nepal’s banking sector. The recent launch of its Doorstep Banking Service marked a significant milestone — a first of its kind in the country. This initiative delivers banking facilities directly to customers’ homes, improving accessibility for senior citizens and those with mobility challenges.
This innovation aligns with the bank’s broader goal of promoting financial inclusion and digital efficiency. By expanding its digital channels, KSBBL aims to reduce operational costs, enhance customer experience, and adapt to the evolving preferences of tech-savvy clients.
Shareholder Value and Dividend Distribution
Reinforcing its commitment to shareholders, the bank’s 19th Annual General Meeting (AGM) for FY 2081/82 approved and distributed a 15.7895% dividend from accumulated profits. With a strong EPS and rising operating income, KSBBL’s current fiscal trajectory points toward the potential for continued attractive shareholder returns.
