RSDC Laghubitta Bittiya Sanstha Ltd. has reported a 73.54% year-on-year increase in net profit based on its unaudited financial results for the second quarter of FY 2082/83. According to the published statement, the microfinance institution earned a net profit of Rs 7 crore 66 lakh during the review period, compared to Rs 4 crore 41 lakh in the same period last year.
The significant growth in net profit was primarily driven by a reversal in impairment charges, despite a slight decline in net interest income. As of the second quarter, RDC Laghubitta’s net interest income fell by 4.01% to Rs 10 crore 76 lakh 24 thousand, while total operating income decreased by 1.72% to Rs 11 crore 21 lakh 68 thousand. However, operating profit surged by 69.48%, reaching Rs 10 crore 96 lakh.
During the review period, impairment charges, which were Rs 2 crore 60 lakh in the previous year, were reversed to a negative Rs 2 crore 73 lakh, contributing significantly to the increase in profitability. Asset quality remained stable, with the non-performing loan ratio increasing slightly by 0.13 percentage points to 2.84%.
RSDC Laghubitta mobilized loans of Rs 5 arba 31 crore 30 lakh while collecting deposits totaling Rs 5 arba 1 crore 37 lakh during the review period, reflecting continued growth in both lending and deposit collection activities.
The microfinance institution’s distributable profit for the second quarter stood at Rs 6 crore 68 lakh, providing a dividend capacity of 12.93%. The paid-up capital of the institution is Rs 1 arba 3 crore 40 lakh, while reserves amount to Rs 26 crore 23 thousand. Earnings per share increased by Rs 5.47 to Rs 14.83, and net worth per share reached Rs 125.15.
As of Poush-end, RSDC Laghubitta’s price-to-earnings (P/E) ratio was 43.15 times, the base rate stood at 6.43%, and the cost of fund was 5.50%.
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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