However, due to bad loans and sluggish recovery, shareholders of about a dozen companies, including NIC Asia and Mathrubhumi, have been forced to suffer serious losses and go without dividends.
In the review period, Chimmek Laghubitta earned a net profit of Rs 1.29 billion and a distributable profit of Rs 2.16 billion. Similalry, Jeevan Bikas Laghubitta has posted a 46.17 per cent rise in net profit to Rs 1.08 billion, distributable profit of Rs 1.40 billion and distributable earnings per share of Rs 800.4 million.
Likewise, Sana Kisan Bikas Laghubitta earned Rs 1.64 billion while Deprosc Laghubitta earned distributable profit of Rs 1.08 billion. From a loss of Rs 10.1 million in the previous year, Nesdo Samriddha Laghubitta made a spectacular comeback with a net profit of Rs 137 million and posted a high distributable earnings per share of Rs 69.17. CYC Nepal Laghubitta has a distributable profit of Rs 228.4 million, net worth of Rs 357.75 and Aatma Nirbhar Laghubitta has a net worth of Rs 362.38.
Despite the positive aspect, the distributable profit of 11 out of 50 listed microfinance institutions has turned negative. The biggest loss in distributable profit has been seen in NIC Asia Laghubitta. The distributable profit of the company declined by 134.75 percent to Rs 955.8 million negative and its distributable loss per share is at Rs 54.95. Similarly, the distributable profit of Mathrubhumi Laghubitta decreased by 259.04 percent to Rs 397.3 million (negative) and distributable loss per shareat Rs 63.24.
Similarly, Nerude Mirmire Laghubitta posted a distributable loss of Rs 121.9 million, Samudayik Laghubitta Rs 68.9 million, Manusi Laghubitta Rs 49.7 milllion, Dhaulagiri Laghubitta Rs 33.9 million and Wean Nepal Laghubitta recorded distributable loss of Rs 25.4 million. Similarly, the distributable profit of Forward Microfinance, Ganapati, Grameen Bikas and Janautthan Samudayik Laghubitta has also been negative. Analysts conclude that the increase in non-performing loans and sluggishness in recovery are weakening the financial health of small and medium finance (SMEs) and the dividend capacity has been severely affected due to past accumulated losses and bad debt management.
