Financial Conditions of 31 Microfinance Companies in the First Quarter

Nov 22, 2017 Merolagani

 

Due to the increase in the cost of fund, microfinance companies could not increase their net profit as expected in the first quarter of the current FY. As a result, although the companies increased their total interest income, increase in their interest expenses has dragged its net interest income down. The condition of interest income and a net profit of the microfinance companies during the first quarter of the current FY is illustrated in the figure below.

 

Note: Please click the picture for the clear view

Similarly, the financial condition of the microfinance companies can be mapped through their EPS and P/E ratio. As per the P/E ratio, RSDC seems in risky position while Samata is in average. The P/E ratio is calculated based on the LTP of Monday.

Note: Please click the picture for the clear view

Likewise, below is the comparative figure of paid-up capital and reserve fund. Eight microfinance companies have maintained higher reserve fund than their paid-up capital. Chimmek Laghubitta has the highest paid-up capital whereas Naya Nepal Microfinance has the least paid-up capital.

Note: Please click the picture for the clear view

comments powered by Disqus

Development Banks Record Minimal Degrowth

Apr 24, 2024 06:56 AM

The net profit of development banks has declined less compared to commercial banks and finance companies in the third quarter.

Gold and Silver Price Decline

Apr 25, 2024 10:37 AM

Chirkhwa Hydropower Incurs Loss

Apr 25, 2024 09:26 AM