Garima Bikas Bank Reports 201% Profit Surge: Strong Growth Across Key Indicators
15th August 2025, Kathmandu
Garima Bikas Bank has released its financial statements for the fiscal year 2024/25, revealing a spectacular financial performance marked by a 201% increase in net profit. The bank’s net profit soared to NPR 131.03 million, a remarkable jump from NPR 43.40 million in the previous year.
Garima Bank’s Profit Surge
This substantial growth, along with improvements in operational efficiency and asset quality, highlights the bank’s strong position and strategic management. The impressive results are further cemented by a healthy dividend capacity of 12.58%, positioning the bank as an attractive choice for investors.
The Driving Force Behind a Staggering Profit Surge
The dramatic increase in Garima Bikas Bank’s profitability is a key story in its financial report. A deep dive into the numbers reveals that this exceptional performance was driven by a combination of factors. The bank’s net interest income grew by a solid 9.91% to NPR 364.33 million, indicating that its core lending business is expanding and performing well. This is a critical sign of operational health, as net interest income is the primary source of revenue for most banks.
However, the main catalyst for the colossal profit surge was a significant reduction in impairment charges for loans and advances. According to reports, these charges fell by an astonishing 68.56%. This suggests that the bank’s loan portfolio, which had previously required high provisions for potential losses, has seen a major improvement. By not needing to set aside as much capital for non-performing loans, the bank was able to free up a substantial amount of its earnings, directly contributing to the massive increase in net profit. This is a powerful demonstration of the bank’s improved risk management and the recovery of its loan assets. The operating profit, which is a measure of core operational success, also showed a staggering 195% increase to NPR 189.80 million, further validating the bank’s enhanced efficiency.
A Win for Shareholders: Strong Dividend Potential
For shareholders, one of the most encouraging takeaways from the report is the bank’s significantly improved dividend capacity. The bank’s distributable profit skyrocketed from a modest NPR 28.64 million to NPR 71.50 million. Distributable profit is the portion of a bank’s earnings that can be legally distributed to its shareholders after making all required provisions and regulatory adjustments. The substantial increase in this figure is a direct result of the bank’s enhanced profitability and its adherence to financial prudence.
Based on this robust distributable profit and the bank’s paid-up capital of NPR 568.05 million, Garima Bikas Bank’s dividend capacity now stands at a healthy 12.58%. This figure indicates that the bank is in a strong position to reward its investors, whether through cash or bonus shares, making it a compelling option for those seeking a tangible return on their investment. The marked improvement in dividend potential from the previous year is a clear signal of the bank’s commitment to creating and delivering shareholder value.
Improving Asset Quality and Financial Prudence
In a testament to its prudent credit risk management, Garima Bikas Bank successfully improved its asset quality during the fiscal year. The non-performing loan (NPL) ratio saw a slight but significant decrease, falling from 4.85% to 4.72%. A lower NPL ratio is a critical indicator of a bank’s health, as it shows that a smaller percentage of its loans are in default. The bank’s ability to reduce this ratio, particularly during a period of economic fluctuation, highlights its effective lending practices and proactive approach to loan recovery.
This improvement in asset quality, combined with the reduction in loan impairment charges, provides a strong foundation for the bank’s future stability. It indicates that the bank is not only growing its lending business but is doing so responsibly, minimizing potential risks and securing its long-term financial health.
A Stable Foundation for Future Growth
Beyond the impressive growth figures, Garima Bikas Bank maintains a fundamentally sound financial structure. The bank’s paid-up capital stands at a solid NPR 568.05 million, complemented by reserves of NPR 230.41 million. A strong capital base is essential for a financial institution, as it ensures regulatory compliance and provides the necessary resources for future expansion and absorbing potential shocks.
The bank’s robust performance is also reflected in its key shareholder metrics. The Earnings Per Share (EPS) saw a healthy increase to NPR 23.07 from NPR 20. The net worth per share stood at NPR 164.17, a figure that reflects the underlying value of the bank’s assets on a per-share basis. These metrics, alongside the impressive profit and dividend capacity, collectively paint a picture of a well-managed and financially healthy organization.
Conclusion and Strategic Outlook
Garima Bikas Bank’s financial results for FY 2024/25 are nothing short of remarkable. The staggering 201% profit growth, driven by enhanced operational efficiency and a significant reduction in impairment charges, signals a powerful recovery and a strong trajectory for the bank. With a lower NPL ratio, a healthy dividend capacity, and a solid capital base, the bank is well-equipped to capitalize on its momentum. The report underscores the bank’s commitment to both growth and prudent management, positioning it for continued success and a leadership role within Nepal’s development banking sector.
For More: Garima Bank’s Profit Surge
