The microfinance institution turned profitable after a year of losses, driven by increased interest income and reversal of impairment charges.
Himalayan Laghubitta Bittiya Sanstha Limited has published its unaudited financial statements for the fourth quarter of the last fiscal year. According to the report, the institution posted a net profit of Rs. 9.17 crore, recovering from a net loss of Rs. 20 lakh during the same period in the previous fiscal year.
The turnaround to profitability was mainly driven by a significant increase in net interest income along with the reversal of impairment charges.
By the fourth quarter, Himalayan Laghubitta’s net interest income surged by 58.50%, reaching Rs. 35.30 crore, while operating income rose by 52.77% to Rs. 40.67 crore. Impairment charges decreased drastically from Rs. 2.40 crore to a negative Rs. 30 lakh.
The institution’s non-performing loan (NPL) ratio increased by 1.84 percentage points, reaching 5.33%.
During the review period, Himalayan Laghubitta mobilized deposits and borrowings amounting to Rs. 4.93 billion and disbursed loans totaling Rs. 4.92 billion.
The company’s paid-up capital stands at Rs. 31.98 crore, with distributable profit of Rs. 6.32 crore and reserves amounting to Rs. 22.79 crore. Earnings per share (EPS) rose to Rs. 28.70, and net worth per share stood at Rs. 148.16.
Other key financial ratios include a price-to-earnings (P/E) ratio of 35.38 times, capital adequacy ratio of 9.49%, cost of funds at 6.48%, and base rate at 12.72%.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
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