NIC Asia Laghubitta Financial Institution Limited has reported a sharp increase in its financial performance for the third quarter of the current fiscal year, with net profit rising by 8,133.98% to Rs 10.69 crore. In the same period of the previous fiscal year, the institution had recorded a net profit of just Rs 12.98 lakh.
The strong growth in profitability was mainly driven by a significant rise in net interest income and operating income. During the review period, the institution’s net interest income increased by 72.20% to Rs 85.40 crore, while operating income rose by 69.45% to Rs 95.46 crore. Similarly, operating profit surged by 8,356.03% to Rs 15.90 crore, reflecting improved core operational performance.
However, the institution faced pressure on asset quality, as the non-performing loan (NPL) ratio increased by 3.04 percentage points to 16.59%. At the same time, impairment charges also rose significantly, moving from a negative Rs 65 lakh to Rs 13.06 crore, indicating higher provisioning for potential loan losses.
Despite the strong profit growth, distributable profit remained under pressure, standing at a negative Rs 32.37 crore, while dividend capacity was also negative at 24.81%, limiting the institution’s ability to distribute dividends in the near term.
On the balance sheet side, the institution collected deposits worth Rs 2.84 arba and disbursed loans totaling Rs 19.72 arba during the review period. Its paid-up capital stood at Rs 1.73 arba 94 lakh, while reserves amounted to Rs 47.57 crore.
In terms of per-share performance, earnings per share (EPS) increased by Rs 8.10 to Rs 8.20, while net worth per share stood at Rs 127.35, reflecting an improvement in profitability indicators despite underlying asset quality concerns.
The institution’s overall performance highlights strong growth in earnings, supported by expansion in lending activities, while also reflecting rising risks in loan quality and provisioning pressures.
This article was originally published on https://bajarkochirfar.com. Translated with the help of AI and reviewed by our editorial team.
