The passive power distribution networks are prone to imperfect voltage profile and higher power losses, especially at the far end of long feeders. The capacitor placement is studied in this article using a novel Mine Blast Algorithm (MBA). The voltage profile improvement and reduction in the net annual cost are also considered along with minimizing the power loss. The optimization problem is formulated and solved in two steps. Firstly, the Voltage Stability Index (VSI) is used to rank the nodes for placement of the capacitors. Secondly, from the priority list of nodes in the previous step, the MBA is utilized to provide the optimal location and sizes of the capacitors ensuring loss minimization, voltage profile improvement, and reduced net annual cost. Finally, the results are tested on 33 and 69 radial node systems in MATLAB. The results for the considered variables are presented which show a significant improvement in active and reactive power loss reduction and voltage profile with lesser reactive power injection.