Lumbini Development Bank Net Profit Surges 252.96% as Dividend Capacity Reaches 16.99%

6th August 2026, Kathmandu

Lumbini Development Bank Limited has delivered an extraordinary financial performance for the fiscal year 2025/26.

Lumbini Bank Profit Surges

According to the recent financial disclosure released in Kathmandu, the banking institution achieved massive growth in net earnings along with an expanded capacity to distribute dividends to shareholders.

Net profit for the bank surged by 252.96% during the review period. The financial report confirms that net profit expanded from 241.11 million Nepali Rupees in the previous fiscal year to 851.02 million Nepali Rupees by the close of the current year.

Growth in Core Income and Operating Revenues

Core banking operations contributed significantly to the financial momentum of Lumbini Development Bank. As of mid-July, net interest income grew by 7.53% to hit 1.997 billion Nepali Rupees compared to 1.857 billion Nepali Rupees recorded in the prior year.

Overall operating income showed solid gains despite minor shifts in secondary fee streams. Total operating income rose to 2.281 billion Nepali Rupees from 2.150 billion Nepali Rupees. Meanwhile, net fee and commission income reached 184.30 million Nepali Rupees compared to 206.03 million Nepali Rupees in the previous fiscal period.

Operating Profit and Capital Reserves

The operational efficiency of the bank was highlighted by a steep increase in operating profit. Operating earnings surged to 1.218 billion Nepali Rupees during the fiscal year, showing more than double the 584.08 million Nepali Rupees posted in the previous period.

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The financial foundation of Lumbini Development Bank remains well capitalized. The institution maintains a paid-up capital base of 3.624 billion Nepali Rupees. Additionally, total reserve funds have expanded to reach 3.505 billion Nepali Rupees.

Deposit Volumes and Loan Disbursements

The overall balance sheet structure remained mostly stable throughout the fiscal review period. Total customer deposits experienced a minimal decrease of 0.26%, sliding from 57.59 billion Nepali Rupees down to 57.44 billion Nepali Rupees.

Lending operations followed a similar steady trajectory with slight consolidations. Total loan disbursements edged down by 0.02% to reach 47.06 billion Nepali Rupees compared to 47.07 billion Nepali Rupees in the previous fiscal year. The credit-to-deposit ratio of the bank was reported at 86.63%.

Distributable Profit and Shareholder Returns

The substantial increase in bottom-line profits delivered a massive boost to distributable earnings. The distributable profit for the period reached 615.58 million Nepali Rupees, elevating the dividend capacity of the bank up to 16.99%.

Key per-share metrics reflected this dramatic surge in corporate profitability. Earnings per share rose sharply from 6.65 Nepali Rupees to 23.48 Nepali Rupees. Net worth per share reached 213.30 Nepali Rupees, while the price-to-earnings ratio stood at 20.58 times.

Asset Quality and Non-Performing Loans

Despite record-breaking profit figures, asset quality indicators presented challenges for the institution. The non-performing loan ratio increased from 4.71% at the end of the previous fiscal year to 6.94% during the current review period. Managing credit risks and bad loan recoveries will remain a crucial operational focus for the bank moving forward.

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