Swarojgar Laghubitta Posts Strong Q2 Earnings
2nd February 2026, Kathmandu
Swarojgar Laghubitta Bittiya Sanstha Limited has officially released its unaudited interim financial statement for the second quarter of the fiscal year 2082/83. As a national level microfinance institution licensed as a Class D bank by Nepal Rastra Bank, the organization has demonstrated a resilient financial posture despite the broader economic headwinds affecting the microfinance sector in Nepal.
Swarojgar Laghubitta Q2 Earnings
The report, covering the period up to Poush end 2082, highlights a period of steady profitability, asset growth, and strategic digital adoption aimed at enhancing service delivery for its members.
Profitability and Distributable Earnings
The financial highlights for the second quarter reveal that Swarojgar Laghubitta earned a net profit of 127.49 million rupees. This figure represents the earnings accumulated after accounting for interest expenses, operating costs, and tax obligations. Following the mandatory regulatory appropriations required by Nepal Rastra Bank—which include transfers to the general reserve, client protection fund, and corporate social responsibility fund—the institutions total distributable profit stood at 272.95 million rupees.
This level of distributable profit provides the board of directors with a solid foundation for future dividend considerations, reflecting the institutions ability to generate surplus capital while maintaining high compliance standards.
Balance Sheet Expansion and Loan Portfolio
As of Poush end 2082, the total assets of Swarojgar Laghubitta reached 10.94 billion rupees. This expansion is primarily driven by the growth in its core lending activities. The institutions loan portfolio increased to 9.83 billion rupees, a notable rise from the 9.26 billion rupees reported in the corresponding period of the previous fiscal year.
The institution has maintained its focus on productive sector lending, with a significant portion of the loan book dedicated to:
- Women centered micro enterprises
- Agriculture and livestock initiatives
- Small scale service businesses
- Sustainable rural entrepreneurship
These loans are critical in promoting financial inclusion among low income households, particularly in the 36 districts where the institution maintains an active presence.
Deposits, Borrowings, and Financial Ratios
Swarojgar Laghubitta’s capital structure remains balanced between member deposits and institutional borrowings. During the review period, customer deposits reached 4.98 billion rupees, while total borrowings from other financial institutions amounted to 4.31 billion rupees.
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The institution reported an annualized Earnings Per Share (EPS) of 32.53 rupees, which is a key indicator of its value creation for shareholders. Other significant financial ratios include:
- Price to Earnings (P/E) Ratio: 25.12 times
- Net Worth Per Share: 1,395.29 rupees
- Liquidity Ratio: 18.64 percent
A liquidity ratio of nearly 19 percent indicates that the institution is well positioned to meet its short term obligations and disbursement demands from its growing member base.
Risk Management and the NPL Environment
The microfinance sector in Nepal has faced significant challenges over the past year, including social movements and a decline in borrower discipline. Swarojgar Laghubitta has acknowledged these pressures, noting a slight impact on its non performing loan (NPL) levels. However, management has emphasized that they are proactively strengthening their credit risk monitoring and direct supervision systems.
To mitigate these risks, the institution has prioritized livestock loans backed by insurance and has intensified its financial literacy programs to ensure that members understand the importance of timely repayment and credit discipline.
Digital Innovation and Operational Reach
A key component of Swarojgar Laghubitta’s strategy for 2082 2083 is the modernization of its banking services. The institution currently operates 91 branch offices, serving more than 140,000 members. To increase efficiency, the microfinance has integrated digital tools such as:
- SMS alerts for transaction notifications.
- QR code based payment services at the branch level.
- Strategic partnerships with digital wallets like eSewa and Khalti for easier loan repayments.
These digital initiatives are designed to reduce operational costs and provide greater convenience for members residing in remote areas.
Conclusion
The Swarojgar Laghubitta Financial Results for the second quarter of 2082/83 reflect an institution that is successfully navigating a complex regulatory and social environment. With a net profit exceeding 127 million rupees and a strong focus on digital transformation, the microfinance remains a key pillar of Nepals rural economy. While external risks persist, the institutions commitment to governance and its healthy liquidity position suggest a positive outlook for the remainder of the fiscal year.
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