Kathmandu-Nabil Bank Limited has reported a sharp rise in profit following leadership changes, with gains driven by improved efficiency, lower risk costs, and stronger asset quality.

By the third quarter of fiscal year 2082 to 83, the bank posted a net profit of Rs 6.76 billion, up 33.91 per cent from Rs 5.05 billion a year earlier.

The turnaround follows the appointment of chief executive officer Manoj Gyawali and leadership changes at the board level, including chairman Nirvana Chaudhary and director Anil Keshari Shah. The new team has focused on tighter risk management, operational efficiency, and financial discipline.

Net interest income rose to Rs 12.45 billion, while fee and commission income reached Rs 2.43 billion. Operating profit increased to Rs 9.61 billion from Rs 7.62 billion.

However, profit growth was largely supported by a sharp drop in impairment charges, which fell to Rs 478.7 million from Rs 2.29 billion.

Asset quality improved during the period. The non performing loan ratio declined to 4.37 per cent from 4.96 per cent. Net NPL dropped to 0.98 per cent from 1.59 per cent. Non banking assets also fell to Rs 3.85 billion.

Despite these gains, margin pressure remains a concern. The spread rate declined to 3.31 per cent from 3.57 per cent, while the base rate dropped to 4.65 per cent from 5.97 per cent, reflecting tightening competition and lower lending yields.

The bank continued to expand its lending. Total loans reached Rs 447.94 billion, while deposits grew to Rs 578.34 billion. The credit to deposit ratio stood at 79.50 per cent, indicating high utilization supported by a strong deposit base.

Capital indicators remain within regulatory limits but show limited room for aggressive growth. Paid up capital stands at Rs 32.05 billion. The capital adequacy ratio is 12.51 per cent, and Tier 1 capital is 9.69 per cent.

Return indicators improved. Earnings per share rose to Rs 33.02 from Rs 25.05. Net worth per share stands at Rs 243.30. The price to earnings ratio is 16.05 times, while return on equity reached 13.66 per cent.

Distributable profit stood at Rs 3.90 billion, with retained earnings at Rs 4.37 billion. Based on current performance, the bank’s annualised dividend capacity is estimated at up to 21.16 per cent.

The bank shows stronger profitability and asset quality after restructuring, though falling margins and rising competition could weigh on future earnings.