Deprosc Laghubitta profit growth jumps 80 percent
5th February 2026, Kathmandu
Deprosc Laghubitta Bittiya Sanstha Limited has demonstrated an exceptional financial turnaround in the second quarter of the fiscal year 2082/83. According to the unaudited financial statements for the period ending Poush 2082, the microfinance institution reported a net profit of 442.9 million rupees. This figure represents a staggering 80.30 percent increase compared to the 245.6 million rupees earned during the same period in the previous fiscal year. This robust growth trajectory highlights the company’s ability to navigate the complex microfinance landscape in Nepal through improved operational efficiency and a focus on core revenue streams.
Deprosc Laghubitta profit growth
The surge in profitability is primarily attributed to a significant rise in net interest income and a sharp reduction in impairment charges, reflecting a more stable credit environment for the institution.
Strategic Growth in Core Revenue and Operating Profit
The fundamental driver of the Deprosc Laghubitta profit growth remains its core lending business. The company successfully managed its interest spread to maximize earnings from its extensive loan portfolio.
Net Interest Income: The institution earned 1.06 billion rupees in net interest income, a 6.67 percent increase from the 994.6 million rupees recorded in the previous year.
Operating Income: Total operating income grew to 1.15 billion rupees, up from 1.08 billion rupees.
Operating Profit: Reflecting high productivity, the operating profit surged by over 71 percent, reaching 629.9 million rupees compared to 367.2 million rupees in the year ago period.
These figures suggest that while the company is expanding its outreach, it is also maintaining tight control over its personnel and administrative expenses.
Financial Indicators and Shareholder Value
For investors, the recent financial results provide a compelling narrative of value creation. The Deprosc Laghubitta profit growth has translated directly into improved market ratios and shareholder returns.
Earnings Per Share: The annualized EPS has climbed to 47.41 rupees, a significant jump from the 28.80 rupees reported in Poush 2081.
Net Worth Per Share: The company’s net worth stands at 221.13 rupees, indicating a strong internal capital generation.
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Price to Earnings (PE) Ratio: Based on current market trends, the PE ratio is approximately 17.42 times, positioning the stock attractively within the microfinance sector.
Balance Sheet Expansion and Outreach
Deprosc Laghubitta continues to be one of the largest microfinance providers in Nepal, with a balance sheet that reflects its wide rural and semi urban footprint.
Loan Portfolio: The company has disbursed loans totaling 25.45 billion rupees to its members.
Deposit Mobilization: Customer deposits have reached 11.93 billion rupees, showcasing the trust the institution has built with its primary savers.
Total Assets: The institution’s total assets have now surpassed the 27.06 billion rupee mark.
The company’s paid up capital remains solid at 1.86 billion rupees, supported by total reserves and surplus exceeding 2.26 billion rupees.
Asset Quality and Risk Management
While the overall performance is bullish, the report highlights a shift in asset quality that requires careful monitoring. The Non Performing Loan (NPL) ratio has increased from 6.09 percent to 8.43 percent during the review period. This rise in delinquent loans reflects the broader economic challenges faced by micro borrowers in the post 2025 economic climate.
However, the institution has proactively managed its impairment charges, which significantly bolstered the bottom line this quarter. Sustaining this profit growth will depend on the company’s ability to recover overdue loans and maintain its credit discipline in the coming quarters.
Conclusion
The Deprosc Laghubitta profit growth of 80.30 percent in the second quarter of 2082 2083 marks a milestone in the institution’s financial journey. With a net profit of 442.9 million rupees and a sharp increase in EPS to 47.41 rupees, the company has solidified its position as a top tier microfinance player in Nepal. While the rise in NPLs presents a challenge, the company’s strong capital base and robust operating income provide a significant buffer for future growth.
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