Nepal’s microfinance landscape witnessed a significant development as NMB Laghubitta Bittiya Sanstha (NMBMF) released its third-quarter report for the current fiscal year. The report revealed a notable downturn in the company’s financial performance, marked by a substantial loss incurred during the period.
According to the disclosed figures, NMB Laghubitta suffered a net loss of Rs 74.9 million in the review period. This stands in stark contrast to the previous fiscal year’s corresponding period, during which the company reported a net profit of Rs 11.5 million.
The primary factor contributing to this downturn is the decline in both net interest income and net fee and commission. These key indicators experienced significant decreases, resulting in the company’s overall financial setback.
Specifically, net interest income plummeted by 32.45 percent, while net fee and commission income saw a decline of 22.44 percent. Additionally, the total operating income of the company decreased by 31.11 percent. Consequently, NMB Laghubitta incurred a net operating loss of Rs 75 million, with a distributable loss amounting to Rs 72.7 million.
Despite these challenges, NMB Laghubitta maintains a robust financial foundation, with a paid-up capital of Rs 721.4 million and a reserve fund of Rs 189 million. Throughout the period under review, the company managed to collect deposits and borrow Rs 4.31 billion, while extending loans amounting to Rs 5.09 billion.
The financial report underscores the dynamic nature of Nepal’s microfinance sector and highlights the importance of adaptability in navigating market fluctuations. NMB Laghubitta’s experience serves as a reminder of the evolving challenges faced by businesses in Nepal’s financial landscape.
