Swabhimaan Laghubitta profit growth rises 43.83%
8th February 2026, Kathmandu
Swabhimaan Laghubitta Bittiya Sanstha Limited has delivered a high performance financial report for the second quarter of the fiscal year 2082/83. Based on the unaudited statements for the period ending Poush 2082, the Rupandehi based microfinance institution achieved a net profit growth of 43.83 percent. This surge is underpinned by an aggressive expansion in interest based earnings and a significant improvement in operating efficiency.
Swabhimaan Laghubitta profit growth
The company is currently operating with a strategic focus on the Lumbini Province, and its latest figures suggest it is successfully scaling its micro credit operations despite the broader challenges facing the sector.
Strong Financial Growth and Profitability
The net profit of the institution reached 29.2 million rupees for the first six months of the current fiscal year, marking a substantial increase from the 20.3 million rupees reported during the same period in the previous year. This growth of nearly 9 million rupees in half a year indicates that the institution has effectively optimized its lending models and cost structures.
The annualized earnings per share has climbed to 38.11 rupees, a healthy jump from the 27.83 rupees recorded in the previous fiscal year. For investors, this rise in EPS is a primary indicator of increasing shareholder value and the company’s ability to generate higher returns on its existing capital base.
Drivers of Income: Interest and Operations
The most significant contributor to the bottom line was the massive surge in net interest income, which grew by 61.53 percent to reach 115.3 million rupees. In the previous year, this figure stood at 71.3 million rupees. This level of growth suggests a higher interest spread and a more productive loan portfolio.
Total operating income also saw a notable upward trajectory, rising 67.75 percent to hit 145.2 million rupees. Even after accounting for an impairment charge of 11.4 million rupees allocated to manage potential credit risks, the operating profit remained robust at over 41.7 million rupees. This indicates that the company is proactively provisioning for bad debts while still maintaining a strong growth curve in its core activities.
Asset Quality and Portfolio Size
While the profit metrics are overwhelmingly positive, the report highlights a slight deterioration in asset quality that warrants close observation. The non performing loan ratio increased from 3.42 percent to 4.95 percent over the last twelve months. Although a 4.95 percent NPL is still within a manageable range for a microfinance institution in the current economic climate, it serves as a reminder that credit recovery remains a critical area for management focus.
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The scale of the institution’s operations is reflected in its balance sheet:
Total Assets: Over 3.41 billion rupees Total Loan Disbursement: 3 billion rupees Total Deposit Collection: 910 million rupees Paid up Capital: 153.4 million rupees Net Worth Per Share: 206.18 rupees
The company maintains a strong capital cushion with total reserves and surplus amounting to approximately 162.8 million rupees. This high net worth per share relative to the face value reflects a very strong intrinsic value for the company’s equity.
Market Valuation and Liquidity
As of the second quarter report, the price earnings ratio of Swabhimaan Laghubitta stands at 44.08 times. This suggests that while the company is performing well, the market has already priced in high expectations for future growth. The liquidity ratio is maintained at 10.44 percent, ensuring the bank has enough cash and liquid assets to meet its immediate obligations while continuing its lending programs.
Conclusion and Future Outlook
The Q2 report for 2082/83 confirms that Swabhimaan Laghubitta is currently in a strong expansionary phase. The 43.83 percent growth in net profit and the 61.53 percent rise in interest income are evidence of a highly effective business strategy. However, the management will need to balance this growth with tighter credit monitoring to ensure that the rising NPL ratio does not reach a level that requires higher impairment charges in the coming quarters.
For stakeholders, the steady rise in net worth and earnings per share provides a positive outlook for potential dividend distributions at the end of the fiscal year. As the institution continues to mobilize deposits and expand its credit reach in semi urban areas, it remains one of the more resilient performers in the microfinance landscape of Nepal.
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