National-Level Development Banks Post NPR 1.67 Billion Net Profit in Q1: Lumbini Leads in Volume, Jyoti Tops Growth

1st November 2026, Kathmandu

National-level development banks in Nepal have reported a significant turnaround in financial performance for the first quarter of the fiscal year 2083/84, accumulating a combined net profit of NPR 1.67 billion.

Development Banks Post Q1 Net Profit 

Aggregate earnings across the eight national-level institutions surged by 113.23 percent compared to the NPR 783.45 million recorded during the corresponding period of FY 2082/83.

Industry Turnaround and Financial Overview

The sector’s collective growth reflects a robust recovery in operational efficiency and credit expansion across the nepalese banking market.

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• Combined Performance: Aggregate net earnings for the eight national-level development banks reached NPR 1.67 billion, marking a 113.23 percent year-on-year surge.
• Operational Baseline: Total industry profit in the baseline Q1 period of FY 2082/83 stood at NPR 783.45 million.

Top Performing Development Banks by Volume and Growth

Leading institutions demonstrated significant financial turnarounds and profit gains during the first three months of the fiscal year.

• Top Earner (Lumbini Bikas Bank): Lumbini Bikas Bank secured the highest net profit at NPR 327.15 million, staging a complete recovery from a net loss of NPR 348.58 million in Q1 of the previous fiscal year.
• Second Highest Profit (Muktinath Bikas Bank): Muktinath Bikas Bank maintained its strong operational standing, earning NPR 322.42 million—a 43.44 percent increase from NPR 224.77 million in Q1 of FY 2082/83.
• Highest Percentage Growth (Jyoti Bikas Bank): Jyoti Bikas Bank recorded the highest growth rate in net profit, jumping 184.59 percent to NPR 200.16 million from NPR 70.33 million in the same period last year.

Performance of Other Major National-Level Institutions

While several banks maintained steady positive trajectory, others experienced marginal to sharp contractions in their first-quarter earnings.

• Kamana Sewa Bikas Bank: Net profit rose 16.99 percent to NPR 231.16 million, up from NPR 197.58 million in the prior year’s first quarter.
• Mahalaxmi Bikas Bank: Earnings grew by 21.49 percent to reach NPR 118.47 million compared to NPR 97.51 million in the base period.
• Garima Bikas Bank: Reported a net profit of NPR 240.12 million, registering a slight decline of 4.17 percent from NPR 250.58 million.
• Shine Resunga Development Bank: Net profit contracted marginally by 2.66 percent to NPR 197.64 million, compared to NPR 203.04 million in Q1 of the previous year.
• Shangrila Development Bank: Experienced a sharp earnings decline, falling 62.07 percent to NPR 33.46 million from NPR 88.21 million reported in the baseline period.

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