NIFRA Q1 Profit Drops 20 Percent Amid Rising Provisioning Costs and Compressed Interest Margins

27th October 2026, Kathmandu

Nepal Infrastructure Bank (NIFRA) has reported a 20.16 percent year-on-year decline in net profit for the first quarter of the fiscal year 2083/84, primarily impacted by lower interest income and elevated impairment charges.

NIFRA Q1 Profit Drops 

Financial Performance and Income Dynamics

The infrastructure development bank recorded net earnings pressure despite expanding its core balance sheet operations during the review period.

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• Net Profit Decline: NIFRA earned a net profit of NPR 166.50 million for the first quarter ending mid-October, down from NPR 208.54 million posted in the corresponding period of the previous fiscal year.
• Interest Income Compression: Total interest income dropped by 3.93 percent to NPR 597.41 million compared to NPR 621.87 million recorded in the same period last year.
• Rising Interest Expenses: Interest expenses advanced by 1.76 percent to reach NPR 253.15 million, leading to a 7.73 percent decline in net interest income to NPR 344.27 million.
• Fee and Commission Growth: Fee and commission earnings experienced robust growth of 58.45 percent, rising to NPR 20.19 million from NPR 12.74 million in the base year.
• Total Operating Revenue: Total operating income contracted by 5.54 percent to stand at NPR 364.45 million.
• Impairment Charges Surge: Loan loss provisioning allocations escalated sharply by 215.48 percent to NPR 38.72 million, compared to NPR 12.27 million in the previous period.
• Operating Profit Reduction: Operating profit contracted by 19.50 percent to settle at NPR 240.13 million.

Balance Sheet Expansion and Key Financial Indicators

Despite profit contraction, the bank recorded significant momentum in deposit collection and loan disbursement portfolios.

• Deposit Collection Expansion: Total customer deposits surged by 54.04 percent to reach NPR 12.05 billion compared to NPR 7.82 billion in the previous year’s first quarter.
• Credit Portfolio Growth: Loan advances expanded by 30.52 percent to reach NPR 34.17 billion against NPR 26.18 billion in the prior period.
• Asset Size Growth: Total asset footprint expanded by 5.50 percent to stand at NPR 44.32 billion.
• Capital Base and Reserves: Paid-up capital remained stable at NPR 21.60 billion, while reserve funds contracted by 38 percent to NPR 2.67 billion.
• Per Share Metrics: Annualized Earnings Per Share (EPS) declined to NPR 3.08 from NPR 3.86, while net worth per share stood at NPR 112.38.
• Asset Quality: Non-performing loans (NPL), which previously stood at zero, recorded a marginal uptick to 0.035 percent at the close of the quarter.

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