Shangrila Development Bank Profit Growth in Q2 FY 2082/83
25th January 2026, Kathmandu
Shangrila Development Bank Limited has reported an impressive financial performance in the second quarter of the current fiscal year 2082/83. The bank latest quarterly financial statement shows strong growth across most key indicators, reflecting improved operational efficiency and expanding business activities. According to the report published on January 25, 2026, the bank has managed to navigate a complex macroeconomic environment to post significant gains in both its top and bottom lines.
Shangrila Development Bank Profit
The data disclosed by the national level development bank reveals that profit increased significantly during the review period. The bank earned a net profit of 302.59 million rupees by the end of Poush 2082, representing a growth of nearly 54 percent compared to the same period of the previous fiscal year. In the corresponding period last year, the bank had posted a net profit of 196.5 million rupees. This substantial rise in profit highlights the bank ability to strengthen earnings despite the ongoing liquidity challenges and shifting interest rate regimes in the Nepalese banking sector.
Core Income Drivers and Operating Efficiency
A primary contributor to the Shangrila Development Bank profit growth is the strong increase in net interest income. During the review period, net interest income rose by 18.49 percent, increasing from 918.2 million rupees to over 1.08 billion rupees. This growth reflects improved loan deployment strategies and better management of the interest margin between deposits and credit products.
Similarly, the bank total operating income saw a healthy upward trend, increasing from 1.05 billion rupees to 1.25 billion rupees. This 19 percent rise indicates consistent growth in both interest based and non interest based income sources, such as service fees, commissions, and digital banking charges. The expansion in operating income has provided the necessary cushion to support higher profitability and improved overall financial stability.
Operating profit also recorded remarkable growth. The bank reported an operating profit of more than 451.3 million rupees, representing a 59.33 percent increase compared to the 283.2 million rupees earned in the same period last year. This strong rise suggests better cost control and higher income generation efficiency during the quarter, as the bank continues to modernize its internal processes and branch operations.
Shareholder Returns and Value Indicators
In terms of shareholder returns, earnings per share (EPS) showed a notable improvement that correlates with the bank rising profit. The bank earnings per share increased from 11.46 rupees to 16.21 rupees, reflecting enhanced profitability and stronger value creation for the investors holding the 37.34 million listed shares of the company. Additionally, the net worth per share stood at 153.24 rupees, indicating a stable and growing capital position.
Advertisement
It is worth noting that the bank recently concluded its 21st Annual General Meeting on Poush 7, 2082, where it approved a 10.36 percent dividend for the previous fiscal year. This dividend consisted of a 5 percent bonus share and a 5.36 percent cash dividend. The issuance of these bonus shares has already been reflected in the current paid up capital of 3.73 billion rupees, providing a larger base for future growth and increasing the bank lending capacity.
Credit Risk and Balance Sheet Strength
However, the financial report also points toward a significant increase in credit risk indicators that investors should monitor closely. The bank non performing loan (NPL) ratio rose from 4.99 percent to 6.87 percent during the review period. While the net profit has improved, the rise in NPLs suggests that the bank is facing difficulties with loan recovery in certain sectors of the economy. This trend aligns with a broader industry pattern where development banks have seen a spike in bad loans due to the slowdown in real estate and small scale manufacturing.
On the capital side, Shangrila Development Bank maintains a solid foundation to absorb potential shocks. The bank reserve funds currently amount to 1.89 billion rupees, and the general reserve fund totals 94.6 million rupees. These reserves, combined with the increased paid up capital, further strengthen the bank financial resilience.
Business expansion also remained positive throughout the second quarter. During the review period, the bank disbursed loans worth 44.40 billion rupees, while deposit collection reached 54.39 billion rupees. The growth in both lending and deposits reflects sustained customer confidence and the bank expanding footprint across its 112 branches nationwide.
Conclusion and Future Outlook
Overall, the second quarter performance of Shangrila Development Bank presents a largely positive picture for the 2082/83 fiscal year. Strong profit growth, rising earnings per share, and expanding operating income indicate effective business execution by the management team led by Suyog Shrestha. At the same time, the increase in non performing loans highlights the critical importance of prudent risk management and aggressive recovery strategies in the coming months.
As the bank moves into the third quarter, its ability to maintain this profit momentum will depend on how effectively it can manage its loan portfolio. If the bank can successfully bring the NPL ratio back toward the 5 percent mark while sustaining its current income growth, it will be well positioned to provide even better returns to its shareholders by the end of the fiscal year.
For More: Shangrila Development Bank Profit
