Saptakoshi Development Bank Limited (SAPDBL), a regional development bank based in Morang, has completed the first half of fiscal year 2082/83 by focusing on cost management and digital banking expansion. The bank is prioritizing the recovery of non-performing loans (NPLs) to strengthen its financial stability.
For the first quarter ending Ashwin 2082, the bank reported a net loss of NPR 1.21 million, indicating ongoing pressure from legacy loan quality issues. During the same period, total revenue stood at NPR 143.46 million, with a gross profit of NPR 65 million.
The base rate dropped from 6.47% in Ashad 2082 to 6.33% in Ashwin 2082, lowering the bank’s cost of funds. The interest spread remained stable at 3.78%.
The bank’s NPL ratio was 11.5%, above the industry average for development banks. To address this, multiple legal notices for loan recovery and property auctions were issued in Morang, Sunsari, and Itahari in late January 2026 (Magh 2082).
Saptakoshi Development Bank maintains total assets of approximately NPR 7.59 billion, total deposits of NPR 7.58 billion, and loans/advances of NPR 5.99 billion. Its credit-to-deposit ratio (CD) is 80.68%, while capital adequacy ratio (CAR) is 9.06%.
On NEPSE, the bank’s share was trading around NPR 970, with an annualized EPS of -0.58 NPR in Q1. Market capitalization stands at over NPR 129 million.
Under CEO Dinesh Kumar Pokhrel, the bank is enhancing digital services, including mobile banking, home and business loans, and modernizing its branch network to attract low-cost deposits and improve net interest margin.
Analysts view the reduction of the base rate and aggressive loan recovery efforts as a positive step toward financial stabilization. In the remainder of the fiscal year, focus will be on bringing the NPL ratio into single digits and achieving minimum capital adequacy.
