Shangrila Development Bank Q1 Net Profit Drops 62% to NPR 33.4 Million as NPLs Rise to 7.64 Percent

2nd November 2026, Kathmandu

Shangrila Development Bank Limited has released its unverified financial results for the first quarter of the fiscal year 2083/84 (ending Mid-October 2026).

Shangrila Bank Q1 Profit Drops

The national-level development bank recorded a net profit of NPR 33.46 million during the review quarter. This represents a significant 62.00 percent contraction compared to NPR 88.21 million earned in the corresponding period of the previous fiscal year, primarily impacted by shrinking interest earnings and a decline in operating profitability.

Net Profit and Operational Revenue Breakdown

The decline in top-line net interest income combined with lower operational earnings affected overall profitability for the quarter.

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• Net Profit: Reported at NPR 33.46 million, down 62.00 percent year-on-year from NPR 88.21 million in Q1 FY 2082/83.
• Net Interest Income: Stood at NPR 509.87 million, compared to NPR 549.12 million in the baseline quarter.
• Net Fee and Commission Income: Reached NPR 63.34 million, slightly down from NPR 64.44 million in the prior year’s baseline period.
• Operating Profit: Contracted sharply to NPR 53.14 million, down from NPR 125.39 million recorded in the corresponding quarter last year.
• Profit Before Tax: Stood at NPR 47.80 million for the review period.

Deposit Mobilization, Lending Expansion, and Reserve Health

The bank maintained continuous growth in deposit collection and loan disbursements, though distributable earnings remained under pressure.

• Total Deposit Mobilization: Accumulated to NPR 57.96 billion by the end of the first quarter.
• Total Credit and Advances: Expanded to NPR 47.10 billion.
• Distributable Profit: Recorded at negative NPR 132.70 million.

Asset Quality Metrics and Financial Ratios

A rise in non-performing assets presents an ongoing challenge for credit recovery, impacting overall per-share earnings metrics.

• Non-Performing Loan (NPL) Ratio: Surged to 7.64 percent during the review period.
• Earnings Per Share (EPS): Recorded at an annualized NPR 3.45.

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