Sanakisan Laghubitta Bittiya Sanstha Limited has announced its unaudited financial results for the fourth quarter of the last fiscal year, showing a notable decrease in net profit and interest income, alongside an increase in non-performing loans.
Sana kisan Laghubitta Sees Net Profit Drop by Over 25%
Sanakisan Laghubitta Bittiya Sanstha Limited released its unaudited financial report for the fourth quarter of the recently concluded fiscal year. The report shows that net profit for the microfinance institution fell by 25.36 percent, settling at Rs. 65 crore 31 lakh. In the same period last year, company earned a net profit of Rs. 87 crore 50 lakh.
Key Financial Indicators Show Decline
This decrease in profit was mainly due to a sharp fall in institution’s net interest income and total operating income. Although a reversal of impairment charges provided some relief, the contraction in core business income clearly impacted the overall net profit.
By the end of the fourth quarter, Sanakisan Laghubitta’s net interest income had dropped by 29.08 percent to Rs. 1 arba 27 crore. Similarly, operating income also decreased significantly by 29.64 percent, coming down to Rs. 1 arba 28 crore. On another note, the impairment charge set aside for potential risk management reduced from Rs. 10 crore 41 lakh to Rs. 3 crore 26 lakh, which was a reversal.
Non-Performing Loans and Lending Activities
The microfinance company’s non-performing loan (NPL) ratio saw an increase of 0.31 percentage points, reaching 2.96 percent. This rise in NPL suggests some pressure on loan recovery efforts. During the review period, the microfinance institution collected a total of Rs. 26 arba 38 crore in deposits and borrowings and extended loans worth Rs. 35 arba 39 crore. Compared to the previous year, loan disbursement saw growth of 3.18 percent.
Capital and Earnings Per Share
Sanakisan Laghubitta has a paid-up capital of Rs. 4 arba 93 crore. Its distributable profit stands at Rs. 1 arba 65 crore, while its reserve fund holds Rs. 4 arba 33 crore. Distributable earnings per share also decreased, dropping from Rs. 42.88 in the previous year to Rs. 33.46.
Due to the increase in paid-up capital and a decline in profit, the microfinance’s earnings per share (EPS) fell by Rs. 7.03, now standing at Rs. 13.26. Moreover, net worth per share is reported at Rs. 221.76.
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