Chhimek Laghubitta Earns Rs 90 Crore Net Profit in First Nine Months of Fiscal Year
8th May 2026, Kathmandu
Chhimek Laghubitta Bittiya Sanstha Limited, a heavyweight in Nepal’s microfinance sector, has delivered a robust financial performance for the first nine months of the fiscal year 2082/83.
Chhimek Laghubitta Net Profit
According to the unaudited financial statements ending in Chaitra, the institution has successfully maintained a trajectory of steady growth. Amidst a challenging economic environment for micro-lenders, the Chhimek Laghubitta net profit surge highlights the company’s operational resilience and its ability to maintain high-quality credit standards.
The report showcases a balanced growth in core income and a significant improvement in asset quality, further cementing its position as one of the most stable and profitable microfinance institutions (MFIs) in the country.
Net Profit Increases by Over 6 Percent
During the review period, Chhimek Laghubitta reported a net profit of Rs 90.64 crore. This is a commendable increase compared to the Rs 85.35 crore earned during the same period of the previous fiscal year. This 6.20% year-on-year growth reflects the institution’s capacity to scale its operations while effectively managing its overheads.
This profitability is particularly notable given the recent pressures on the microfinance industry, demonstrating that Chhimek’s conservative yet strategic lending approach continues to pay dividends for its shareholders.
Core Income: Net Interest Income Crosses Rs 2.20 Billion
The primary driver of the Chhimek Laghubitta net profit remains its core lending activities. The company’s net interest income saw a healthy rise of 6.72%, climbing from Rs 2.06 billion in the previous fiscal year to Rs 2.20 billion in the current period.
Operational indicators also showed positive movement across the board. Total operating income increased by 7.12%, reaching Rs 2.49 billion. Consequently, the operating profit witnessed a 5.63% improvement, totaling Rs 1.26 billion. These figures indicate that the institution is not only earning more from its interest spreads but is also maintaining a healthy margin after operational costs.
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Asset Quality: Significant Improvement in NPL Ratio
In a sector currently grappling with rising bad loans, Chhimek Laghubitta has managed to swim against the tide. One of the most encouraging highlights of the report is the decline in the Non-Performing Loan (NPL) ratio. The NPL ratio improved from 2.60% down to 2.32%.
This reduction suggests that the institution’s loan recovery mechanisms and credit appraisal processes are performing exceptionally well. Lower NPLs mean fewer provisions for loan losses, which directly supports the bottom line and ensures the long-term sustainability of the lending portfolio.
Distributable Profit and Shareholder Metrics
The distributable profit of the company—the pool from which dividends are typically paid—has neared the Rs 2 billion mark. It rose by approximately 6%, moving from Rs 1.84 billion to Rs 1.95 billion. This suggests that the company remains in a strong position to reward its shareholders in the coming months.
However, despite the jump in total profit, the Earnings Per Share (EPS) saw a slight technical decline. The EPS adjusted from Rs 35.39 to Rs 33.41. Meanwhile, the company’s net worth per share remains solid at Rs 241.93, and its base rate is maintained at 11.78%.
Capital Structure and Massive Loan Portfolio
Chhimek Laghubitta continues to operate with a massive balance sheet, serving a significant portion of Nepal’s rural and semi-urban population. By the end of Chaitra, the institution’s financial position was characterized by:
- Paid-up Capital: Rs 3.61 billion
- General Reserve Fund: Rs 3.13 billion
- Total Deposits Collected: Rs 44.69 billion
- Total Loans Disbursed: Rs 44.10 billion
With a total valuation exceeding Rs 5.71 billion, the company holds nearly equal amounts in deposits and loans, showcasing a self-sustaining and balanced financial model that is rare in the microfinance industry.
Conclusion
The third-quarter results for Chhimek Laghubitta Bittiya Sanstha Limited confirm its status as a market leader. Through a combination of Chhimek Laghubitta net profit growth, an improving NPL ratio, and a robust reserve base, the company has shown that it can thrive even in a volatile market. As the fiscal year nears its end, the institution’s focus on maintaining asset quality while expanding its Rs 44 billion lending portfolio will be key to sustaining its impressive financial momentum.
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