(KSBBL) Kamana Sewa Bikas Bank Reports Rs. 197.6 Million Profit in Q1 FY 2082/83, Shows Stable Financial Growth Amid Market Challenges

Kathmandu — KSBBL Kamana Sewa Bikas Bank Limited has posted a net profit of Rs. 197.6 million in the first quarter of the fiscal year 2082/83, reflecting steady performance despite a competitive and liquidity-tight financial environment. The unaudited quarterly report published on Friday highlights the bank’s prudent financial management and consistent growth across major indicators.

As of the end of the first quarter, the bank’s total deposits stood at Rs. 63.78 billion, showing moderate growth compared to the same period last year. The loan and advances portfolio reached Rs. 53.45 billion, demonstrating controlled credit expansion in line with regulatory requirements and market liquidity conditions.

The credit-to-deposit (CD) ratio of 86.35 percent indicates a well-balanced asset utilization strategy. It also shows that the bank is operating comfortably within the Nepal Rastra Bank’s regulatory limit, maintaining adequate liquidity to manage short-term obligations and support future lending opportunities.

The bank’s non-performing loan (NPL) ratio has been reported at 4.41 percent, which, although slightly on the higher side compared to industry leaders, remains within manageable levels. This reflects continued efforts by the management to contain credit risks and recover delinquent accounts through tighter monitoring and restructuring practices. The NPL figure also suggests that the bank is maintaining focus on improving loan quality and minimizing defaults in a sluggish credit market.

With a net profit of Rs. 197.6 million, the bank has managed to sustain profitability amid increasing operating costs and interest rate pressures. This performance underscores operational efficiency and disciplined cost management. The bank’s focus on retail and SME segments, coupled with digital banking expansion, has contributed to stable income streams.

By the end of the quarter, total assets had reached Rs. 71.63 billion, signaling gradual balance sheet growth and a steady rise in earning assets. The growth in total assets, driven by controlled lending and effective deposit mobilization, indicates the bank’s cautious yet forward-looking approach toward financial stability.

The bank’s 19th Annual General Meeting (AGM) recently approved a 15.7895 percent total dividend for shareholders based on last fiscal year’s profit. The distribution includes 15 percent bonus shares and 0.7895 percent cash dividend (for tax purposes). This payout reflects management’s confidence in the bank’s capital adequacy and sustained earnings potential.

Kamana Sewa Bikas Bank’s first-quarter results portray a picture of resilient performance, with a focus on balance sheet discipline, risk containment, and profitability stability. Going forward, the bank’s ability to improve its NPL ratio, enhance fee-based income, and leverage digital banking channels will be crucial in sustaining growth in the evolving financial landscape of Nepal.