Himalayan Laghubitta Profit Surge and Financial Performance Review 2082/83
2nd February 2026, Kathmandu
Himalayan Laghubitta Bittiya Sanstha Limited has announced its unaudited financial results for the second quarter of the fiscal year 2082/83, showcasing a period of robust growth in its bottom line.
Himalayan Laghubitta Profit Surge
The report, which details the performance up to the end of Poush 2082, highlights a significant increase in net profit and a notable expansion in core interest income. As a subsidiary of Himalayan Bank Limited, the institution’s performance is closely watched as a reflection of the health of the broader microfinance sector in Nepal.
Exceptional Growth in Net Profit
The most prominent feature of the second quarter report is the remarkable jump in profitability. Himalayan Laghubitta reported a net profit of 26.1 million rupees for the first half of the current fiscal year 2082 2083. This represents a staggering 395.69 percent increase compared to the 5.25 million rupees earned during the corresponding period of the previous fiscal year 2081 2082.
The surge in net profit is primarily attributed to:
Enhanced Interest Income: A 30.71 percent growth in net interest income, which rose to 15.33 crore rupees.
Operational Efficiency: Improved management of operating expenses relative to income growth.
Low Base Effect: The significant percentage increase is also partly due to the lower profit base recorded in the same period last year.
Robust Operating Profit and Revenue Expansion
The financial statement reveals that the institution’s operating profit also mirrored the net profit’s growth trajectory. Operating profit for the review period stood at 3.72 crore rupees, compared to just 75.11 lakh rupees in the previous year. This growth confirms that the institution is successfully scaling its core business operations and generating sustainable income from its lending activities.
Total revenue for the period reached 30.43 crore rupees, demonstrating a steady ability to mobilize resources despite the challenging economic climate. The bank’s focus on rural and semi urban markets has allowed it to maintain a consistent flow of interest from its diversified loan portfolio.
Loan Portfolio and Borrowing Trends
Himalayan Laghubitta has continued to expand its credit reach during the 2082 2083 period.
Loans and Advances: The total loan portfolio expanded by 25.39 percent, reaching 4.69 billion rupees by the end of Poush.
Borrowings: To support its lending activities, the company increased its borrowings by 67.82 percent to 4.36 billion rupees.
Deposits: Customer deposits also saw growth, contributing to a more balanced funding structure for the institution.
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Rise in Non Performing Loans and Asset Quality Concerns
Despite the strong profit figures, the financial report highlights a significant challenge regarding asset quality. The non performing loan (NPL) ratio rose to 5.62 percent during the second quarter, marking a 56.55 percent increase from the 3.59 percent reported in the previous year.
The rising NPL ratio suggests:
Recovery Challenges: Difficulties in loan collection due to broader economic stress affecting micro borrowers.
Provisioning Requirements: Higher bad loans will necessitate increased impairment charges, which could impact future profitability if the trend is not reversed.
Management Focus: The institution is expected to prioritize credit monitoring and aggressive recovery strategies in the coming quarters to stabilize its asset quality.
Shareholder Value and Capital Adequacy
The growth in net profit has positively influenced the institution’s per share metrics.
Earnings Per Share (EPS): The annualized EPS rose to 16.30 rupees, a significant improvement from 3.29 rupees in the previous year.
Net Worth Per Share: This metric reached 150.84 rupees, reflecting a 5.8 percent improvement and a strengthening equity base.
Paid Up Capital: The company’s paid up capital remains steady at 319.8 million rupees.
The capital adequacy ratio stood at 8.60 percent, which remains within the regulatory framework but indicates a tightening capital buffer as the loan book continues to expand rapidly.
Future Outlook and Strategic Direction
Looking ahead, the sustainability of Himalayan Laghubitta’s profit growth will depend on its ability to manage the rising NPL ratio while maintaining its current revenue momentum. The management’s focus is likely to shift toward digitalizing recovery processes and enhancing the credit appraisal mechanism to mitigate future risks.
While the short term earnings performance is exceptionally strong, investors and stakeholders will be closely watching the third quarter results to see if the institution can successfully curb the upward trend in bad loans.
Conclusion
Himalayan Laghubitta Bittiya Sanstha Limited has delivered a highly successful second quarter for the fiscal year 2082/83 in terms of profitability, with a 395.69 percent jump in net profit. However, the rise in the NPL ratio to 5.62 percent serves as a critical indicator of the risks inherent in the current microfinance landscape. For the remainder of the year, the institution’s ability to balance its aggressive growth strategy with prudent risk management will be the defining factor for its long term financial health.
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