According to the reports, most of the microfinance companies succeeded to raise their profit as well as distributable profit. Increase in distributable profit means increase in dividend capacity of the companies.
The reports shows that the companies have a minimum of 1.44 percent to 177.55 percent dividend capacity. Although the reports depict high dividend capacity, they cannot distribute dividend generously. If any microfinance company proposes dividend above 15 percent (cash or stock), the company is required to transfer 35 percent of proposed dividend above 15 percent to general reserve fund. The particular requirement bars the companies from distributing dividend justifiable to its dividend capacity.
In the last FY, many microfinance companies skipped dividend distribution due to negative EPS and distributable profit.
NESDO Samriddha Logs Highest Distributable Profit
Out of companies that published financial reports, NESDO Samriddha Laghubitta logged the highest distributable profit. The company has 177.55 percent dividend capacity followed by Unique Nepal Laghubitta with 125.56 percent, Chhimek Laghubitta with 57.64 percent and Sana Kisan Bikas Laghubitta with 45.44 percent dividend capacity.
Similarly, Swabalamban Laghubitta has 33.11 percent, National Laghubitta has 29.25 percent, Mahila Laghubitta has 28.61 percent dividend capacity.
Meanwhile, Unnati Sahakarya, Himalayan Laghubitta, NMB Laghubitta, Aviyan Laghubitta and Grameen Laghubitta do not have dividend capacity.
