Saptakoshi Development Bank Limited has published its unaudited financial results for the fourth quarter of FY 2025/26, reporting a significant improvement in profitability and asset quality.

According to the financial statement, the bank's net profit increased by 86.18% year-on-year to Rs 150.47 million, compared to Rs 80.82 million recorded during the same period of the previous fiscal year.

The strong earnings growth was mainly driven by a substantial rise in operating profit, improved asset quality, and a significant decline in non-performing loans (NPLs).

During the review period, operating profit surged 132.05% to Rs 247.97 million, while net interest income declined marginally by 0.47% to Rs 233.43 million.

The bank's NPL ratio fell by 4.50 percentage points to 6.15%, reflecting stronger credit risk management and an improvement in loan quality.

Saptakoshi Development Bank collected Rs 8.88 billion in deposits and extended Rs 5.56 billion in loans during the review period. Deposits increased by 66.44%, while loan disbursement grew by 10.40% compared to the previous year.

The bank's Credit-to-Deposit (CD) Ratio declined from 79.01% to 67.63%, while its reserve fund increased by 29.74% to Rs 448.01 million.

The bank's paid-up capital stood at Rs 834.34 million. However, it reported a negative distributable profit of Rs 558.85 million at the end of the review period.

Earnings per Share (EPS) rose by Rs 8.35 to Rs 18.04, while Net Worth per Share reached Rs 86.71. The bank reported a Base Rate of 8.85% and a Cost of Funds of 5.70%.