NSB group pre-tax profit up 30% to Rs. 34.8bn in 3Q

National Savings Bank (NSB) Group has reported a profit before tax (PBT) of Rs. 34.8 billion for the nine months ended September 30, 2025, marking a 30 percent increase compared to the previous year.

The state-owned lender also saw its profit after tax (PAT) surge by 32 percent to Rs. 21.2 billion during the same period.

Despite a slight moderation in total income attributed to lower market rates, the bank strengthened its core profitability through active liability management. A 15.8 percent reduction in interest expenses facilitated a 16.8 percent increase in Net Interest Income (NII), which reached Rs. 64.4 billion. Consequently, the Net Interest Margin improved to 4.71 percent. The bank further reported a 26.3 percent growth in net fee and commission income, while other non-interest income rose by nearly 62.5 percent, contributing to an 18.4 percent expansion in total operating income.

Operating expenses increased during the period due to wage adjustments and investments in digital infrastructure; however, the cost-to-income ratio remained steady at 38.28 percent. The bank contributed significantly to state revenue, paying over Rs. 24.1 billion in taxes on financial services and income tax.

Asset quality showed a marked improvement, with the Stage 3 impaired loan ratio—a key indicator of non-performing loans—falling to 2.63 percent from 5.18 percent at the end of 2024. Concurrently, the Stage 3 impairment coverage ratio increased to 59.36 percent from 44.50 percent in the previous year, reflecting a conservative provisioning stance.

The group’s total assets grew by 5.3 percent from the end of 2024 to reach Rs. 1.87 trillion, supported primarily by increased investments in government securities. Customer deposits stood at Rs. 1.59 trillion. However, the loan book saw a marginal decrease, with loans and advances standing at Rs. 519 billion, a result of selective lending strategies.

Capital buffers remained well above regulatory requirements, with a Tier 1 Capital Ratio of 21.92 percent and a Total Capital Ratio of 23.89 percent. The reinforced financial foundation improved key performance metrics, with Return on Equity increasing to 24.67 percent from 18.15 percent. Liquidity levels were also reported as high, with a Liquidity Coverage Ratio exceeding 349 percent.

NSB Chairman Dr. Harsha Cabral PC stated that the results highlight the bank’s ability to uphold its dual mandate of safeguarding national savings and supporting state financing while maintaining profitability. General Manager/CEO Shashi Kandambi noted that the performance was driven by disciplined balance-sheet management, improved margins, and sustained investments in technology and staff.