Jyoti Development Bank Profit Jumps Tenfold as Distributable Earnings Turn Positive

6th August 2026, Kathmandu

Jyoti Development Bank Limited has published its financial report for the fourth quarter of the fiscal year 2025/26.

Jyoti Bank Profit Jumps

The latest quarterly disclosure reveals a massive earnings turnaround for the financial institution, highlighted by a tenfold jump in net profit alongside a return to positive distributable earnings after previous losses.

Net profit for the bank surged by an extraordinary 905.75% over the fiscal period. Total net profit reached 1.01 billion Nepali Rupees, marking a sharp increase compared to the 100 million Nepali Rupees recorded in the previous fiscal year.

Income Growth and Operating Performance

Core revenue channels experienced strong growth and drove the overall financial rebound for Jyoti Development Bank. Net interest income rose by 11.77%, climbing from 2.10 billion Nepali Rupees in the prior fiscal period up to 2.34 billion Nepali Rupees during the review period.

Secondary revenue streams and broader operating totals also expanded significantly. Net fee and commission income increased from 162.9 million Nepali Rupees to 285.2 million Nepali Rupees. Total operating income rose from 2.47 billion Nepali Rupees to reach 2.81 billion Nepali Rupees.

Operating Profit and Distributable Earnings Turnaround

The sharp rise in top-line revenues resulted in significant operating profit expansion. Operating profit soared by 360.15%, surging from 389.8 million Nepali Rupees to pass 1.79 billion Nepali Rupees for the fiscal year.

A central highlight of the financial results is the complete recovery of distributable profit. After posting a negative distributable profit of 999.4 million Nepali Rupees in the previous fiscal year, the bank successfully turned its distributable earnings positive to reach 144.3 million Nepali Rupees.

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Per-Share Returns and Asset Quality Improvement

The strong bottom-line recovery provided a substantial boost to per-share metrics for investors. Earnings per share jumped dramatically from 2.28 Nepali Rupees to 22.88 Nepali Rupees by the end of the fourth quarter.

Asset quality indicators showed notable recovery alongside profit growth. The non-performing loan ratio improved from 7.75% down to 6.65%. Lower default pressure allowed the bank to stabilize its overall credit portfolio.

Capital Position and Cost Metrics

Jyoti Development Bank maintained strong capital reserves to support ongoing operations. Paid-up capital was reported at 4.40 billion Nepali Rupees, while total reserve funds climbed to 2.98 billion Nepali Rupees. Net worth per share reached 170.97 Nepali Rupees.

Operational efficiency improved as funding costs decreased across the institution. The base rate declined from 7.12% down to 5.89%, while the overall cost of funds stood at a low 3.76%.

Deposit Growth and Lending Operations

Commercial operations expanded as the bank increased both deposit taking and credit issuance. Total customer deposits rose from 60.48 billion Nepali Rupees to 67.23 billion Nepali Rupees over the fiscal year.

Lending operations grew steadily to match increased liquidity on the balance sheet. Total loans and advances issued to clients expanded from 45.24 billion Nepali Rupees to reach 49.58 billion Nepali Rupees by the end of the fourth quarter.

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