RDB posts record first-half profit on strong lending, deposits

Lasantha Fernando

D.M.T.S. Kumara

State-owned Regional Development Bank (RDB) reported a record profit in the first half of 2025, supported by a strong lending and deposit growth, marking a milestone in its 40-year history.

The bank posted a profit before tax of Rs.2.2 billion for the six months ended June 30, up from Rs.492 million a year earlier. Profit after tax crossed Rs.1 billion. RDB’s lending portfolio rose to Rs.260 billion by end-June, from Rs.240 billion at the close of 2024, while deposits grew by Rs.17 billion in the same period, the bank said in a statement.  Total assets reached Rs.345 billion, compared with Rs.324 billion at year-end 2024. Capital adequacy remained above the regulatory minimums, with Tier 1 and total capital ratios at 9.06 percent and 14.43 percent, respectively. Liquidity also stayed strong, with a liquidity coverage ratio of 320 percent and a net stable funding ratio of 131 percent. Chairman Lasantha Fernando said the performance was driven by disciplined strategies and a structured budget, noting the bank had maintained an attractive interest margin despite the pressures from a moderately high nonperforming loan ratio.

CEO Thilak Kumara pointed to continued customer confidence, citing the bank’s growth across rural and urban communities. RDB, which celebrated its 40th anniversary this year, hosted commemorative events, including a trade fair, awards ceremony and special stamp launch. The bank said it remains focused on supporting small and medium-sized enterprises, agriculture, fisheries and micro enterprises through its 272 service points serving more than seven million customers.