15th August 2025, Kathmandu
Kamana Sewa Bikas Bank has released its financial results for fiscal year 2024/25, reporting a 9.19% increase in net profit to NPR 63.53 million.
Kamana Sewa Reports Profit
This growth, along with a significant jump in dividend capacity, reflects the bank’s operational efficiency and solid financial footing.
Growth in Profit and Interest Income
The bank’s strong performance is anchored in its core banking activities. Its net interest income rose to NPR 224.44 million, an 11.92% increase from the previous fiscal year. This highlights the bank’s success in managing its loan portfolio and generating higher returns. The bank also maintained a steady growth in its operating profit, which increased by 1.97% to NPR 98.69 million. This indicates that Kamana Sewa Bikas Bank is not only generating more revenue but is also effectively managing its day-to-day expenses, which is crucial for long-term stability and profitability.
Stability and Shareholder Value
Despite the competitive market, the bank has demonstrated a commitment to both stability and shareholder value. The non-performing loan (NPL) ratio remained low at 3.38%, a minimal increase from 3.36%. This stability in asset quality is a positive sign of the bank’s prudent credit risk management practices.
For shareholders, the news is especially encouraging. The bank’s distributable profit grew significantly from NPR 41.12 million to NPR 60.74 million, a change that directly impacts its dividend-paying potential. Based on this, the bank’s dividend capacity stands at 17.3%, showcasing a strong ability to reward its investors. This high dividend capacity, combined with a net worth per share of NPR 168.13 and an EPS of NPR 18.10, positions Kamana Sewa Bikas Bank as an attractive option for those seeking both steady returns and long-term value.
Capital and Outlook
With a paid-up capital of NPR 351.08 million and reserves of NPR 178 million, the bank has a solid foundation for future expansion. These figures not only ensure regulatory compliance but also provide the necessary capital for strategic growth initiatives. The bank’s financial performance for FY 2081/082 reflects a well-managed organization that is successfully navigating the market challenges by focusing on core strengths, operational efficiency, and prudent risk management. The consistent growth in key metrics, coupled with a strong dividend potential, suggests a positive outlook for the bank and its stakeholders.
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