Shine Resunga Financial Results and Q2 Performance Analysis 2082/83

29th January 2026, Kathmandu

Shine Resunga Development Bank Limited has released its unaudited financial results for the second quarter of the fiscal year 2082 2083 demonstrating a period of strong profitability and operational growth despite a general economic slowdown in the region. For the quarter ending in Poush 2082 the bank reported a net profit of 201.23 million rupees bringing the cumulative year to date net profit to 404.28 million rupees.

Shine Resunga Financial Results

This performance reflects a 22.19 percent increase compared to the 330.85 million rupees earned during the same period of the previous fiscal year. The consistent growth in bottom line figures positions Shine Resunga as a leading performer within the national level development bank category.

Revenue Performance and Operating Income

The primary engine behind the Shine Resunga Development Bank financial success has been its core interest based revenue. Cumulative interest income for the first half of the year reached 2.94 billion rupees. After accounting for interest expenses of 1.65 billion rupees the bank achieved a net interest income of 1.28 billion rupees. Although the net interest income saw a marginal decline from the 1.29 billion rupees recorded in the previous year the bank successfully offset this through increased non interest income streams.

Net fee and commission income for the half year period rose to 150.70 million rupees reflecting higher transaction volumes and the expansion of digital banking services. Consequently the total operating income for the first six months of the fiscal year grew to 1.46 billion rupees. This diversified revenue base has allowed the bank to maintain its profitability momentum even as interest rate spreads across the industry face regulatory and competitive pressure.

Operating Costs and Profitability Efficiency

Efficient cost management has been a hallmark of the banks operations this quarter. Total operating expenses for the half year stood at 540.08 million rupees. Personnel expenses remained the largest cost component at 344.40 million rupees as the bank continues to invest in its workforce and branch network. Despite these expenditures the bank generated an operating profit of 605.84 million rupees for the first six months.

The bank also proactively managed its credit risk by allocating 314.62 million rupees for impairment charges year to date. This conservative approach to provisioning ensures that the balance sheet remains resilient against potential loan defaults. Profit before income tax for the half year was recorded at 577.54 million rupees showcasing the banks high earning capacity before regulatory deductions.

Asset Quality and Risk Metrics

The non performing loan ratio for the period was reported at 4.75 percent. While this is an increase from the 4.40 percent recorded in the corresponding period of the previous year it remains within manageable limits for a development bank with extensive rural and semi urban exposure. To mitigate this risk the bank has maintained a high provision level with its total loan loss provision to total non performing loan ratio standing at 95.90 percent. This robust coverage ratio provides a significant safety net for the banks assets.

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The cost of funds for the institution has seen a favorable decline to 4.23 percent down from 5.37 percent in the previous year. This reduction in funding costs has allowed the bank to maintain a competitive base rate of 6.13 percent making it an attractive option for borrowers in the Lumbini province and beyond. The interest rate spread was recorded at 4.19 percent which is well within the regulatory ceiling.

Balance Sheet Growth and Capital Position

Shine Resunga continues to show strong balance sheet expansion with total assets reaching 82.55 billion rupees as of mid January 2026. Customer deposits grew to 73.21 billion rupees indicating deep seated public trust in the institution. On the lending front the bank has deployed 59.53 billion rupees in loans and advances to customers. The credit to deposit ratio of 84.77 percent reflects an active lending posture as the bank seeks to support local businesses and agricultural enterprises.

The capital base of the bank remains exceptionally strong with a paid up capital of 5.02 billion rupees. Total equity attributable to holders is 7.36 billion rupees supported by reserves of 2.18 billion rupees. The capital adequacy ratio stands at 13.08 percent which is comfortably above the regulatory requirement of 11 percent. This solid capital buffer provides the foundation for the banks continued expansion and its ability to weather potential financial volatility.

Shareholder Returns and Key Ratios

For investors the latest results offer a positive outlook on shareholder value. The annualized basic earnings per share stood at 16.10 rupees. The net worth per share is 146.60 rupees and the liquidity ratio remains healthy at 25.99 percent. Notably the distributable profit as of the end of the second quarter was recorded at 160.02 million rupees after necessary regulatory adjustments and appropriations.

The banks return on equity was reported at 10.97 percent and its return on assets at 0.99 percent. These efficiency ratios indicate that the bank is effectively utilizing its assets and capital to generate returns for its stakeholders. With a strong presence in western Nepal and a growing digital ecosystem the bank is well positioned to maintain its growth trajectory for the remainder of the fiscal year.

In conclusion the Shine Resunga Development Bank financial results for the second quarter of 2082 2083 paint a picture of a resilient and profitable institution. By focusing on low cost deposit mobilization and maintaining a healthy capital buffer the bank has managed to grow its net profit significantly despite broader economic challenges. While the rise in non performing loans requires vigilant management the overall financial health of the bank remains robust and its outlook for the second half of the year is optimistic.

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