Rastriya Banijya Bank’s Profit Surges 60.68%

State-owned Rastriya Banijya Bank Limited (RBB) reported a net profit of Rs 4.56 billion in the fourth quarter of fiscal year 2082/83, marking a 60.68% increase from Rs 2.84 billion a year earlier.

According to the bank’s unaudited financial results, the sharp rise in profit was supported by stronger revenue growth, higher net interest income and lower impairment charges.

The bank’s net interest income increased 17.85% to Rs 11.97 billion from Rs 10.15 billion in the previous fiscal year. Total operating income also grew 14.19% to Rs 15.06 billion.

Operating profit saw an even stronger improvement, rising from Rs 3.94 billion to Rs 6.48 billion, an increase of around 64%.

One of the notable improvements was in distributable profit. The bank had reported a distributable loss of Rs 850.2 million in the previous year, but this turned into a distributable profit of Rs 1.08 billion in FY 2082/83.

RBB also expanded its lending and deposit base. Total loans increased by around 13.6% to Rs 332.08 billion, while deposits rose to approximately Rs 686.13 billion. Total assets also expanded from around Rs 585 billion to more than Rs 778 billion.

The bank’s Earnings Per Share (EPS) improved sharply from Rs 10.27 to Rs 29.14. Its cost of funds also declined from 3.33% to 2.96%, supporting the improvement in net interest income.

However, asset quality remains an area to watch. The bank’s Non-Performing Loan (NPL) ratio increased slightly from 3.79% to 3.95%.

Overall, RBB’s latest results show a strong recovery in profitability, with higher core income, improved operating profit and a return to distributable profit. However, the rise in NPLs suggests that maintaining loan quality will remain important as the bank continues expanding its balance sheet.

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