Nepal SBI Bank Limited has reported a net profit of Rs 2.04 billion for fiscal year 2082/83, up 12.89% from Rs 1.81 billion in the previous fiscal year.

The increase in profit came despite only modest growth in core interest income. The bank’s net interest income increased 1.30% to Rs 5.33 billion, while lower impairment charges provided additional support to earnings.

Impairment charges fell 8.77% to Rs 940.1 million from Rs 1.03 billion a year earlier. The bank also benefited from a significant decline in its cost of funds, which dropped from 5.18% to 4.06%.

On the balance sheet, deposits increased 6.62% to Rs 212.83 billion, while loans and advances grew faster, rising 8.23% to Rs 146.08 billion.

Asset quality also improved during the year. The bank’s non-performing loan (NPL) ratio declined from 3.35% to 2.92%, while its capital adequacy ratio strengthened from 12.75% to 13.74%.

The bank’s distributable profit stood at Rs 1.25 billion, while reserves increased 12.03% to Rs 9.49 billion. Earnings per share (EPS) rose from Rs 16.62 to Rs 18.04, and net worth per share increased to Rs 194.73.

At the end of Ashad, Nepal SBI Bank’s market price stood at Rs 392.90 per share, giving the stock a reported P/E ratio of 21.78 times.

Overall, the results show a moderate improvement in profitability, supported by lower impairment expenses, cheaper funding and improved asset quality, even as operating profit declined during the year.