Development Banks Surge with 50% Profit Growth: Garima Leads the Market as Lumbini Records 1028% Growth

The development banking sector has shown a robust recovery. The aggregate net profit for all 16 banks surged by 49.57%, rising from Rs. 3.88 billion to Rs. 5.81 billion. This collective growth was led by Garima Bikas Bank, which secured the top rank with a net profit of Rs. 1.04 billion, a significant 42.91% increase from the previous year. Muktinath Bikas Bank and Shine Resunga Development Bank followed closely, both showing strong double digit growth, while Jyoti Bikash Bank more than doubled its earnings with a 105.30% jump.

The most dramatic percentage shifts occurred among banks recovering from previous losses or low bases. Lumbini Bikas Bank saw an extraordinary leap of 1028.26%, turning a modest profit of Rs. 49.7 million into Rs. 561.6 million. Similarly, Excel Development Bank and Saptakoshi Development Bank successfully pivoted from net losses in Chaitra 2081 to positive territory in Chaitra 2082, contributing heavily to the sector's overall health. However, the recovery was not universal across the board.

Despite the general upward trend, three institutions reported net losses this year. Salapa Bikas Bank, Sindhu Bikas Bank, and Narayani Development Bank all remained in the red, with Sindhu Bikas Bank experiencing the sharpest decline, falling from a profit of Rs. 112 million to a loss of Rs. 33 million, similarly, Narayani Development Bank Limited recorded loss of 49 million which is the highest loss among the development banks.  Additionally, while the top eight banks consistently grew, the bottom half of the list showed much higher volatility, indicating that while the sector's leaders are stabilizing and expanding, smaller players continue to face significant operational or credit challenges in the current market.