Mahalaxmi Bikas Bank Reports Balanced Financials and Strong Growth in Dividend Distribution Capacity
21st August 2025, Kathmandu
Mahalaxmi Bikas Bank Limited has released its unaudited financial report for the fourth quarter of the fiscal year 2024/25, showing a strong and balanced performance across all major indicators.
MBBL Reports Balanced Financials
The results highlight the bank’s fortified profitability, efficient cost management, and a growing capacity to distribute dividends to its shareholders. The report positions the bank as a stable and growth-oriented financial institution, committed to both shareholder value and customer-centric services.
Profitability and Shareholder Returns
The financial statement reveals a significant improvement in the bank’s profitability. Mahalaxmi Bikas Bank has posted a net profit of NPR 50.03 crore by the end of FY 2024/25. This impressive figure is a testament to the bank’s steady operational performance, prudent financial management, and effective risk control strategies. This robust profit growth directly translates into a higher return for shareholders. The bank’s capacity to distribute dividends has risen to 11.51 percent this fiscal year, a notable increase that reflects the enhanced value the bank is creating for its investors. This improved dividend-paying capacity is a strong indicator of the bank’s financial health and its confidence in future earnings.
Deposits, Loans, and Key Financial Ratios
The bank’s core business activities of deposit collection and loan disbursement have shown healthy growth. As of the end of the fiscal year, the bank has successfully collected total deposits of NPR 56.22 billion. On the lending front, it has disbursed NPR 45.85 billion in loans, representing a 5.05 percent increase compared to the previous fiscal year. This growth in lending indicates a strong demand for credit and the bank’s continued role in supporting economic activity.
The bank’s financial stability is further underscored by its key financial ratios, which are all within regulatory-compliant ranges. The Return on Equity (ROE) stands at a solid 11.79 percent, reflecting the bank’s efficiency in generating profits from shareholders’ investments. The Credit-to-Deposit (CD) Ratio is at 83.98 percent, a healthy figure that indicates the bank has sufficient liquidity to meet its lending and operational needs. Crucially, the Non-Performing Loan (NPL) Ratio is at 4.86 percent, which is well within the Nepal Rastra Bank’s prescribed limit, demonstrating the bank’s effective asset quality management and sound credit control. Furthermore, the bank’s capital adequacy ratio is sufficient, ensuring that it has no capital pressure that could hinder its business expansion plans in the coming years.
Improved Efficiency and Customer Benefits
One of the most significant highlights of the report is the notable decline in the bank’s cost of funds. As of Ashadh end 2024/25, the cost of funds stood at 4.56 percent, which is 2.47 percent lower than the previous fiscal year. This reduction in the cost of raising funds has a direct and positive impact on the bank’s profitability. More importantly, it translates into a lower base rate for lending. The bank’s base rate dropped to 6.54 percent by the end of Shrawan 2082. A lower base rate is a direct financial relief for borrowers, as it reduces the interest rates on their loans. This strategic efficiency allows the bank to offer more competitive loan products, attracting new customers and retaining existing ones.
Digital Innovation and Nationwide Presence
In a move to align with modern banking trends and provide greater convenience to its customers, Mahalaxmi Bikas Bank has embraced digital innovation. The bank has added a Virtual Credit Card (VCC) feature to its mobile banking application, “Mahalaxmi Smart Sathi.” This feature allows customers to conduct secure and convenient online transactions without the need for a physical credit card. This development not only enhances the bank’s digital ecosystem but also caters to the growing demand for secure e-commerce solutions.
The bank continues to expand its reach and strengthen its customer relationships. Living by its motto, “Strong Bank, Successful Partnership,” Mahalaxmi Bikas Bank now operates through a network of 103 branch offices across the country. This widespread presence has helped it serve a growing customer base of over 800,000 people nationwide, underscoring its commitment to reaching underserved areas and providing quality financial services to Nepali households.
Conclusion
The fourth-quarter financial report for FY 2024/25 paints a picture of a robust and forward-thinking financial institution. With its strong net profit, enhanced dividend-paying capacity, and efficient management of key financial ratios, Mahalaxmi Bikas Bank is well-positioned for sustainable growth. The bank’s proactive approach to reducing its cost of funds and base rate directly benefits its loan customers, while its investment in digital services like the Virtual Credit Card ensures it remains relevant in an increasingly digital world. The combination of its wide branch network and customer-centric strategy guarantees that Mahalaxmi Bikas Bank is a reliable partner for both its shareholders and the general public.
For More: MBBL Reports Balanced Financials
