Prabhu Bank Q1 Profit Edges Up to NPR 603.7 Million as Non-Performing Loans Surge to 14.80 Percent

2nd November 2026, Kathmandu

Prabhu Bank Limited has published its unverified financial report for the first quarter of the fiscal year 2083/84.

Prabhu Bank Q1 Profit 

The bank recorded a net profit of NPR 603.72 million during the review quarter, marking an 8.10 percent increase compared to NPR 558.48 million earned in the corresponding period of the previous fiscal year. However, the institution faces operational headwinds driven by declining core interest revenue and a significant rise in bad loans.

Advertisement

Profitability Performance and Core Revenue Decline

The bank experienced contraction across its primary revenue streams, which put pressure on total operating income and operational profit metrics.

• Net Profit: Reached NPR 603.72 million, expanding by 8.10 percent year-on-year from NPR 558.48 million in Q1 FY 2082/83.
• Net Interest Income: Dropped by 19.30 percent to NPR 2.33 billion, down from NPR 2.90 billion in the baseline quarter.
• Net Fee and Commission Income: Contracted to NPR 688.50 million, compared to NPR 704.75 million in the prior year’s first quarter.
• Total Operating Income: Declined to NPR 3.37 billion, down from NPR 3.83 billion recorded in Q1 FY 2082/83.
• Operating Income Before Impairment: Stood at NPR 2.78 billion, compared to NPR 2.82 billion in the baseline period.
• Operating Profit: Decreased to NPR 1.15 billion, down from NPR 1.17 billion in the corresponding period last year.
• Profit Before Tax: Recorded at NPR 1.16 billion, down from NPR 1.17 billion reported in the base period.

Asset Quality Deterioration and Key Financial Indicators

A sharp increase in non-performing assets presents a key challenge for credit recovery, pressuring capital strength despite reduced funding costs.

• Non-Performing Loan (NPL) Ratio: Surged to 14.80 percent, up sharply from 5.78 percent in Q1 of the previous fiscal year.
• Capital Adequacy Ratio (CAR): Declined to 11.83 percent, down from 13.60 percent in the baseline period.
• Cost of Funds: Reduced to 3.19 percent, down from 3.86 percent in the base quarter.
• Base Rate: Decreased to 4.95 percent, down from 5.68 percent.
• Credit to Deposit (CD) Ratio: Stood at 65.07 percent, down from 69.46 percent.

Deposit Mobilization, Credit Expansion, and Balance Sheet Size

• The commercial bank maintained a large deposit mobilization base alongside substantial capital backing and total assets.
• Total Deposit Mobilization: Accumulated to NPR 350.11 billion by the end of the first quarter.
• Total Credit and Advances: Reached NPR 211.13 billion.
• Total Assets: Expanded to NPR 417.26 billion during the review period.
• Paid-up Capital: Maintained at NPR 23.54 billion.
• Reserve Fund: Stood at NPR 17.01 billion.

For More: Prabhu Bank Q1 Profit