KATHMANDU: Kamana Sewa Development Bank Ltd. (KSBBL) has reported a strong financial performance for the fiscal year ended mid-July 2026, with net profit rising by more than one-third on the back of business expansion and improved operating performance.

According to the bank’s unaudited fourth-quarter financial statements, net profit increased by 33.51 percent to Rs 894.1 million, compared with Rs 669.7 million in the previous fiscal year.

The bank’s net interest income also grew to Rs 2.41 billion, up from Rs 2.31 billion a year earlier, reflecting continued expansion in its core lending business.

Similarly, total operating income increased from Rs 2.70 billion to Rs 2.85 billion, while operating profit surged to Rs 1.38 billion, compared with Rs 1.04 billion in the previous fiscal year.

According to the financial statements, the bank’s improved earnings were supported by business growth and a decline in impairment charges during the review period.

Despite the stronger financial performance, the bank’s non-performing loan (NPL) ratio rose slightly to 3.77 percent from 3.49 percent a year earlier. The bank attributed the increase to slower loan recoveries amid the broader economic slowdown.