Kamana Sewa Bank Six Month Profit Reaches Rs 394.9M

19th January 2026, Kathmandu

Kamana Sewa Development Bank Limited has published its financial results for the second quarter of the current fiscal year 2081/82, covering the period from Shrawan to the end of Poush 2082 (mid-January 2026).

Kamana Sewa Bank Profit

According to the unaudited financial statement released on Magh 5, 2082, the bank has recorded a net profit of Rs 39.49 crore within the first six months. This represents a robust financial position and reflects a notable improvement in overall operational performance despite the broader economic fluctuations in Nepal’s banking sector.

Significant Growth in Net Profit

The disclosed figures reveal that Kamana Sewa Bank’s net profit increased by 22.34 percent year-on-year. During the same period of the previous fiscal year, the bank had earned a net profit of Rs 32.24 crore. This consistent rise in profitability is a key indicator of improved operational efficiency, better income generation, and more disciplined expense management.

This growth trajectory positions Kamana Sewa Bank as one of the stronger-performing national-level development banks in Nepal. The management’s ability to drive double-digit profit growth highlights the effectiveness of their strategic focus on retail and SME segments.

Performance in Interest and Operating Income

A major highlight of the half-yearly report is the bank’s core revenue performance. Net interest income, the primary source of revenue for commercial and development banks, reached Rs 1.02 billion. This reflects a refined strategy in managing lending rates and deposit mobilization to maintain a healthy interest spread.

Furthermore, the bank’s total operating income rose from Rs 1.29 billion in the previous year’s corresponding period to Rs 1.42 billion. This broad-based improvement in income streams, encompassing both interest and non-interest sources like service fees and commissions, has been a direct catalyst for the increased net profit.

Operating Profit and Earnings Per Share (EPS)

During the six-month review period, the bank’s operating profit saw a significant surge, rising from Rs 46.91 crore to Rs 56.72 crore. This jump is a testament to the bank’s successful cost-to-income ratio management and the strength of its core banking operations.

For investors, the most encouraging metric is the healthy increase in Earnings Per Share (EPS). The bank’s annualized EPS rose from Rs 18.37 to Rs 20.43. A rising EPS is a critical signal for the capital market, as it strengthens shareholder confidence and typically leads to a better valuation of the bank’s script on the Nepal Stock Exchange (NEPSE).

Credit and Deposit Mobilization

Kamana Sewa Bank has continued to expand its market footprint by growing its lending and deposit portfolios. By the end of Poush 2082, the bank’s financial position included:

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Total Deposits: Rs 63.62 billion

Total Loans and Advances: Rs 52.10 billion

The bank has maintained a prudent balance between credit expansion and deposit collection, ensuring that its Credit-to-Deposit (CD) ratio remains well within the regulatory limits set by Nepal Rastra Bank (NRB). This disciplined balance sheet management ensures adequate liquidity to meet short-term obligations while supporting long-term growth.

Improvement in Asset Quality and NPL

In an environment where many financial institutions are struggling with rising bad loans, Kamana Sewa Bank has made progress in controlling its credit risk. The Non-Performing Loan (NPL) ratio declined from 4.35 percent to 4.10 percent during the review period.

This reduction is a result of strengthened risk management practices, more rigorous credit appraisal processes, and aggressive loan recovery efforts. Reducing the NPL ratio is vital for sustaining long-term profitability and protecting the bank’s capital from impairment charges.

Capital Adequacy and Net Worth

The bank’s capital position remains strong, with a paid-up capital of Rs 3.86 billion. Additionally, the bank has maintained reserves and surplus of Rs 1.94 billion and retained earnings of Rs 29.57 crore.

The net worth per share is recorded at Rs 158.07, indicating a high intrinsic value for the company. A solid capital buffer like this is essential for a national-level development bank, as it provides the necessary foundation for branch expansion and serves as a cushion against potential economic volatility.

Conclusion

The second-quarter financial results of Kamana Sewa Development Bank showcase a resilient and growing institution. With a net profit of Rs 39.49 crore and an EPS exceeding Rs 20, the bank is delivering strong value to its shareholders. The combination of rising operating income and improving asset quality suggests that Kamana Sewa is well-positioned for sustainable growth through the remainder of the 2082/83 fiscal year.

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