Banking News – Shangrila Development Bank Limited posted a net profit of Rs. 889.9 million for the fiscal year 2025/26 (FY 2082/83 BS), driven by higher interest income and improved operating performance, according to its fourth-quarter financial results.

The development bank’s net profit increased to Rs. 889.9 million, up from Rs. 606.7 million recorded in the previous fiscal year, reflecting a strong year-on-year improvement.

The bank’s net interest income rose to Rs. 2.42 billion, compared with Rs. 2.07 billion in the preceding year, supported by growth in core banking operations.

Similarly, total operating income climbed from Rs. 2.46 billion to more than Rs. 2.95 billion, while operating profit reached Rs. 1.35 billion.

Shangrila Development Bank reported distributable profit of Rs. 492.3 million, and its earnings per share (EPS) increased to Rs. 23.83.

However, the bank’s non-performing loan (NPL) ratio also increased, rising from 5.52% in the previous fiscal year to 6.87%, indicating a deterioration in asset quality despite the improvement in profitability.

As of the end of the fiscal year, the bank’s paid-up capital stood at Rs. 3.734 billion, while it maintained general reserves of Rs. 2.10 billion and distributable reserves of Rs. 492.3 million.