Himalayan Laghubitta Bittiya Sanstha (HLBSL), a subsidiary of Himalayan Bank, has published its fourth quarter financial report of the last FY. As per the report, the company logged impressive growth in its net profit, income, dividend capacity and earnings per share (EPS).

The company has earned a net profit of Rs 106.6 million at the end of the last FY. This was 49.18 percent higher than the previous year's net profit of Rs 71.4 million. The net interest income of the company increased to Rs 442.1 million from Rs 370.8 million in the previous FY. Similarly, the operating profit of the company increased to Rs 152.1 million from Rs 105.4 million in the previous FY.

The ability of microfinance to pay dividends has also improved significantly. The distributable profit of the microfinance company has reached Rs 92.5 million by the review period after regulatory adjustment and adjustment of accumulated profit of the previous FY. Accordingly, the distributable profit per share of the company has been maintained at Rs 27.13, which shows a strong possibility of attractive dividend for the shareholders.

The company with a paid-up capital of Rs 341 million and a total fund of Rs 291.7 million including reserve and consolidated profit.

The deposit and borrowing increased from Rs 4.93 billion to Rs 5.28 billion and loan to customers increased from Rs 4.89 billion to Rs 4.96 billion. The total assets of the microfinance company increased from Rs 5.87 billion to Rs 6.14 billion.

Himalayan Laghubitta has made a significant jump in both business and profit in the last FY. The company's net profit increased by 49 percent to Rs 106.6 million and earnings per share reached Rs 31.26. The dividend yield of Rs 27.13 per share will ensure excellent returns for investors if the increase in bad loans (9.04 per cent) is effectively offset.