NCBL Second Quarter Report 2082/83 Update
6th February 2026, Kathmandu
National Co-operative Bank Limited (NCBL) has released its unaudited financial results for the second quarter of the fiscal year 2082/83, revealing a period characterized by a modest return to profitability despite persistent asset quality concerns.
NCBL Second Quarter Report
Based in Pulchowk, Lalitpur, the bank’s latest NFRS-compliant report indicates a stabilization effort after a tumultuous previous year.
Financial Position and Asset Quality
As of Poush end 2082, NCBL’s total assets stand at Rs 52.03 billion, a slight decrease from the Rs 52.96 billion recorded during the same period last year. This contraction reflects a more cautious approach to lending and an increase in loan loss provisioning.
Cash and Equivalents: Rs 11.02 billion
Loans and Advances: Rs 11.98 billion (issued primarily to cooperative unions and institutions)
Total Liabilities: Rs 48.87 billion
Net Worth Per Share: Rs 108.65
The most critical challenge highlighted in the report is the sharp rise in the Non-Performing Loan (NPL) ratio, which has surged to 35.74% from 17.13% a year ago. This indicates that more than one-third of the bank’s loan portfolio is currently at risk, necessitating a high loan loss provision of 30.19%.
Profitability and Recovery
Despite the asset quality issues, NCBL has managed to flip its bottom line from a significant loss to a marginal profit. The bank earned a net profit of Rs 5.52 million in this quarter, a stark contrast to the Rs 459.73 million loss posted in the second quarter of the previous fiscal year.
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Key Performance Ratios
Net Interest Income: Rs 179.11 million
Basic Earnings Per Share (EPS): Rs 0.19 (Up from negative Rs 16.30)
Capital Adequacy Ratio (CAR): 2.22% (Improved from 1.12%)
Credit to Deposit (CD) Ratio: 35.38%
Interest Rate Spread: 5.99%
Shareholder and Regulatory Outlook
While the bank is back in the black, the distributable profit remains constrained by accumulated losses from previous years. Consequently, dividend distributions are unlikely in the near term as the bank prioritizes strengthening its internal reserves and meeting regulatory capital requirements.
The marginal improvement in the Capital Adequacy Ratio to 2.22% shows progress, but it remains well below the levels typical of commercial banks, reflecting the unique regulatory environment and current stressors within Nepal’s cooperative sector.
Conclusion
The NCBL Second Quarter Report for 2082/83 signals a “stabilization phase.” Returning to a positive EPS of Rs 0.19 is a necessary first step for recovery, but the 35.74% NPL ratio serves as a serious warning sign. Future growth will depend entirely on the bank’s ability to recover bad debts and manage the systemic risks currently facing the cooperative movement in Nepal.
For More: NCBL Second Quarter Report
