In the review period, the company earned net loss of Rs 27.9 million compared to Rs 55.3 million net profit of the corresponding period of the last FY.
Prolonged sluggish economy and high non-performing loans can be attritbuted to the occurance of the net loss. The company that earned Rs 403.5 million in net interest income only managed to earn Rs 288.9 million during the period. Similalry, the company earned Rs 30.7 million operaitng loss compared to Rs 76 million operating profit of the last FY.
Non-performing loans, which have become a major challenge for microfinance, have increased drastically in Nerude Mirmire. In the review period, the NPA increased to 21.73 percent from 15.70 percent in the last fiscal year. As a result, the microfinance company has to make provision of Rs 102.7 million, thus, affecting the profitability of company. Provision coverage has been maintained at 39.72 per cent of the total non-performing loans.
