KATHMANDU: Shangrila Development Bank Ltd. has reported a strong improvement in profitability and dividend-paying capacity, posting robust financial results for the fiscal year ended mid-July 2026.

According to its unaudited fourth-quarter financial statements, the bank recorded a net profit of Rs 889.9 million, marking a 46.69 percent increase from Rs 606.6 million in the previous fiscal year.

The bank’s net interest income also rose by 16.83 percent to Rs 2.42 billion, reflecting growth in its core banking business.

Shangrila Development Bank’s dividend-paying capacity strengthened alongside higher earnings. As of the end of the fiscal year, the bank’s distributable profit stood at Rs 492.3 million, up from Rs 368.3 million a year earlier. Based on its paid-up capital of Rs 3.73 billion, the bank has the capacity to distribute a dividend of up to 13.19 percent to shareholders.

The bank also expanded its business during the year. Total deposits increased from Rs 54.86 billion to Rs 56.92 billion, while loans and advances grew from Rs 42.82 billion to Rs 45.87 billion.

With market interest rates declining, the bank’s cost of funds dropped to 3.54 percent from 5.01 percent, while its base rate fell to 5.57 percent from 7.08 percent, making borrowing more affordable for customers.

The bank’s Credit-to-Deposit (CD) ratio stood at 83.37 percent, indicating sufficient liquidity to support further credit expansion.

Meanwhile, the bank significantly reduced its impairment charge to Rs 91.3 million, down from Rs 345.4 million a year earlier, reflecting improved provisioning requirements during the year.

However, the bank’s non-performing loan (NPL) ratio increased to 6.87 percent, compared with 5.52 percent in the previous fiscal year.