Lumbini Development Bank’s 18th Annual General Meeting (AGM)

25th December 2025, Kathmandu

Lumbini Bikas Bank Limited which was formerly recognized in the financial market as Lumbini Finance and Leasing Company Limited has officially released its audited financial results for the fiscal year that concluded on Ashadh 31 2082. This comprehensive disclosure serves as a vital update for the shareholders and stakeholders of the bank providing a clear picture of its financial health and operational stability.

Lumbini Bank’s 18th AGM

Headquartered in Tilottama Municipality Rupandehi the bank has maintained its commitment to transparency by adhering to the Nepal Financial Reporting Standards and the strict directives issued by Nepal Rastra Bank. Along with the financial data the bank has also announced the schedule for its 23rd Annual General Meeting where key decisions regarding the future of the institution will be finalized.

SCHEDULE AND AGENDA FOR THE 23RD ANNUAL GENERAL MEETING

The board of directors has scheduled the 23rd Annual General Meeting to take place on Shrawan 30 2082 starting at 11 00 AM at the registered office of the bank in Rupandehi. The meeting is set to cover a wide range of essential corporate matters including the formal discussion and approval of the Chairman report for the past year. Shareholders will also be asked to review and approve the auditor report the balance sheet the profit and loss statement and the cash flow statement. Another significant item on the agenda is the appointment of an external auditor for the upcoming fiscal year 2082 2083 and the determination of their remuneration. As per the standard regulatory procedure a book closure date has been announced ensuring that only those shareholders registered before the cut off can participate and exercise their voting rights.

ANALYSIS OF THE STATEMENT OF FINANCIAL POSITION

The balance sheet as of mid July 2025 shows that the total assets of Lumbini Bikas Bank Limited have reached a significant milestone of 20,061,390,299 rupees. A major portion of these assets is comprised of loans and advances to customers which stand at 12,345,523,021 rupees reflecting the bank active role in providing credit to the domestic economy. The bank also maintains a healthy liquidity position with cash and cash equivalents totaling 3,882,802,508 rupees. On the liabilities side the bank reports a total of 6,972,443,413 rupees with a significant amount due to other banks and financial institutions. The equity section reveals a strong capital base with share capital at 3,518,134,138 rupees and total equity reaching 6,861,150,825 rupees including various reserves such as the regulatory reserve and retained earnings.

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PROFITABILITY AND EARNINGS PERFORMANCE

For the fiscal year ended Ashadh 31 2082 Lumbini Bikas Bank reported a total operating income of 1,510,726,653 rupees. This income was driven primarily by net interest income which amounted to 1,218,154,600 rupees after accounting for interest expenses. Despite facing significant impairment losses of 584,007,455 rupees due to the challenging credit environment the bank managed to post a profit before tax of 476,521,561 rupees. After settling income tax expenses the net profit for the year stood at 241,106,426 rupees. This performance resulted in a basic and diluted earnings per share of 5.65 rupees. While the profitability shows resilience the bank also reported a total comprehensive income of 341,380,435 rupees when including fair value gains on equity instruments.

ASSET QUALITY AND REGULATORY COMPLIANCE

One of the critical metrics highlighted in the report is the non performing loan ratio which stood at 4.55 percent by the end of the fiscal year. This represents an increase from the 3.29 percent reported in the previous year reflecting the broader economic pressures facing borrowers in Nepal. However the bank has maintained a robust loan loss provision coverage of 112.80 percent ensuring that it is well protected against potential defaults. In terms of capital adequacy the bank reported a total capital fund to risk weighted assets ratio of 13.50 percent which is comfortably above the regulatory minimum required by Nepal Rastra Bank. These figures indicate that while asset quality has seen some stress the bank remains well capitalized and liquid.

CASH FLOW AND DIVIDEND DISTRIBUTION

The summarized statement of cash flows indicates that the bank generated 250,949,444 rupees from its operating activities. However it saw a net decrease in cash and cash equivalents of 448,209,765 rupees over the year primarily due to investing and financing activities. During the year the bank distributed a cash dividend of 105,544,024 rupees as approved in previous meetings. The closing balance for cash and cash equivalents was reported at 3,382,802,508 rupees. These movements reflect the bank efforts to balance its growth objectives with the need to provide returns to its shareholders while maintaining sufficient liquidity for daily operations and regulatory requirements.

CONCLUSION AND FUTURE OUTLOOK

In conclusion the audited financial statements of Lumbini Bikas Bank Limited for the fiscal year 2081 2082 showcase a financial institution that is successfully navigating a complex economic landscape. By maintaining profitability and a strong equity base the bank has positioned itself to continue supporting the financial needs of its customers in Rupandehi and beyond. The upcoming 23rd Annual General Meeting will provide a platform for shareholders to engage with the management and discuss the strategies for the next fiscal year. With a focus on improving loan recovery and expanding its digital footprint the bank remains a key player in the development banking sector of Nepal.

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