Mahuli Laghubitta Reports Financial Turnaround In FY 2082/83 With Over 1000 Percent Net Profit Growth

3rd August 2026, Kathmandu

Mahuli Laghubitta Financial Institution Limited has reported a remarkable financial turnaround for the fiscal year 2082/83.

Mahuli Laghubitta Reports Turnaround In FY 2082/83

In its unaudited fourth-quarter financial results, the microfinance institution recorded a 1,036.40% year-on-year increase in net profit.

The company earned a net profit of NPR 193.2 million during the review period, compared to NPR 17.0 million reported in the corresponding period of the previous fiscal year.

This substantial surge in earnings highlights a successful operational recovery, stronger credit discipline, and expanded lending activities across underserved markets in Nepal.

Net Interest Income And Operating Revenue Grow Strongly

The financial turnaround of the institution was supported by strong growth across its core revenue streams and interest-bearing assets.

Net interest income rose significantly from NPR 355.9 million in the previous fiscal year to NPR 497.4 million during FY 2082/83.

Total operating income also saw a healthy increase, climbing from NPR 395.1 million in the prior year to over NPR 538.5 million in the current period.

This steady revenue expansion reflects improved interest collection, optimized yield on advances, and better performance from micro-enterprise loan portfolios.

Operating And Distributable Profits Increase Significantly

Higher operational earnings directly contributed to a notable rise in overall profitability metrics across the institution.

Operating profit grew from NPR 223.5 million in the prior fiscal year to more than NPR 276.1 million in FY 2082/83.

Distributable profit witnessed a dramatic surge, rising from NPR 47.7 million to over NPR 165.0 million.

This expansion in distributable funds strengthens the financial capacity of the company to reward shareholders with potential future dividend distributions, subject to mandatory regulatory approval from Nepal Rastra Bank.

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Earnings Per Share Surges As Non-Performing Loans Decline

The Earnings Per Share (EPS) of the microfinance institution increased sharply, jumping from NPR 4.60 per share to NPR 49.88 per share.

This significant growth in EPS reflects the sharp rise in net profit and improved earnings retention throughout the fiscal year.

Asset quality also showed visible improvement during the review period.

The Non-Performing Loan (NPL) ratio declined from 12.16% in the previous year to 9.80% at the end of FY 2082/83.

While an NPL ratio of 9.80% remains somewhat elevated compared to broader banking industry averages, the downward trajectory reflects progress in loan recovery, restructuring efforts, and risk mitigation strategies.

The Net Worth Per Share, or book value per share, of Mahuli Laghubitta stood at NPR 227.91 by the end of the fourth quarter.

Capital Base, Lending Portfolio, And Declining Base Rate

The official financial statement released by Mahuli Laghubitta highlights the following structural indicators:

• Paid-up Capital stands at NPR 387.4 million.
• Reserve Fund reached NPR 330.6 million.
• Total Loans Disbursed grew to NPR 6.17 billion.
• Total Deposits Collected reached NPR 2.07 billion.
• Base Rate reduced from 12.68% down to 11.30%.

The decline in the base rate from 12.68% to 11.30% indicates reduced cost of funds, allowing the institution to pass on competitive borrowing rates to its microfinance clients.

Financial Summary And Market Outlook

Mahuli Laghubitta delivered an exceptional financial performance throughout FY 2082/83, achieving double-digit and triple-digit growth across key financial indicators.

The institution recorded strong gains in net profit, net interest income, operating revenue, operating profit, distributable profit, and earnings per share.

At the same time, it successfully reduced non-performing loans and lowered its overall cost of borrowing.

The improved financial health, expanding loan portfolio, and growing reserve base position Mahuli Laghubitta for sustainable growth in rural financial inclusion and community-level economic empowerment across Nepal.

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