Kathmandu: Miteri Development Bank reported a strong earnings surge in the first six months of Nepal’s current fiscal year 2025/26 (FY 2082/83), posting a net profit of Rs 57 million. This marks a 120 percent jump compared with the same period last year, when the bank earned about Rs 25.9 million.
The sharp rise in profit was driven largely by higher net interest income. Earnings from core lending and deposit activities climbed to Rs 144.6 million during the review period, up from 85.9 million rupees a year earlier. The improvement came despite a significant increase in provisions set aside for potential loan losses, which rose from Rs 5.8 million to Rs 21.9 million, indicating the bank strengthened its risk buffers while still expanding profitability.
Reflecting the earnings growth, annualized earnings per share increased from Rs 4.25 to Rs 9.37. The bank’s net worth per share stood at Rs 135.98 by the end of the third quarter. Distributable profit reached Rs 26.6 million, while retained earnings totalled Rs 67.9 million. Miteri Development Bank has paid-up capital of Rs 1.21 billion and maintains a reserve fund of about Rs 370 million.
The bank also recorded robust balance sheet expansion. Deposits grew from Rs 6.51 billion at the end of the last fiscal year to Rs 8.39 billion by mid-January. Lending followed a similar trajectory, with loans and advances rising from Rs 5.18 billion to Rs 6.56 billion over the same period, pointing to steady credit growth.
Asset quality remained strong, with non-performing loans at just 0.45 percent. The bank’s average base rate during the quarter was 6.48 percent, while its capital adequacy ratio stood at a healthy 16.81 percent, well above regulatory minimums. Overall, the results show a smaller regional bank strengthening its profitability, capital position, and balance sheet simultaneously amid a competitive banking environment.
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