Infinity Laghubitta Reports Strong Financial Turnaround in Fourth Quarter Results

13th August 2026, Kathmandu

Infinity Laghubitta Bittiya Sanstha Limited has published its unaudited fourth-quarter interim financial statements for fiscal year 2082/83.

Infinity Laghubitta Financial Turnaround

The financial results reflect a significant operational turnaround, marked by a complete recovery into profitability, expanded net interest income, and notable improvements across asset quality metrics.

Supported by lower funding costs and enhanced loan loss provisioning coverage, the microfinance institution strengthened its capital adequacy position and returned to positive distributable earnings.

Significant Turnaround in Net Profit and Pre-Tax Earnings

The financial statement highlights a major recovery across bottom-line performance indicators during the review period:

• The company posted a net profit of Rs 18.24 crore for fiscal year 2082/83, reflecting a turnaround from a net loss of Rs 6.40 crore recorded in the corresponding period of the previous fiscal year.
• Profit before tax reached Rs 28.53 crore, compared with a pre-tax loss of Rs 6.30 crore reported in fiscal year 2081/82.
• After accounting for current and deferred tax adjustments, the institution successfully restored its bottom-line profitability and overall financial stability.

Substantial Growth in Net Interest Income and Operating Profit

Core revenue channels and primary microfinance operations experienced major operational momentum:

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• Net Interest Income: Net interest income expanded substantially to Rs 47.92 crore, up from Rs 36.32 crore in the previous fiscal year. Total interest income rose to Rs 80.60 crore, while interest expenses declined sharply to Rs 32.69 crore.
• Operating Profit: Total operating income stood at Rs 54.69 crore. Strengthened by reduced impairment-related expenses, net operating income reached Rs 60.54 crore against operating expenses of Rs 31.95 crore, resulting in an operating profit of Rs 28.58 crore.
• Fee and Commission Earnings: Total net interest, fee, and commission income climbed to Rs 54.68 crore, supported by fee and commission income of Rs 6.77 crore.

Distributable Profit Turns Positive with Capital Allocations

Following mandatory regulatory adjustments and statutory appropriations, Infinity Laghubitta restored its distributable earnings:

• Distributable profit available for distribution reached Rs 13.06 crore at the close of the review period.
• Statutory appropriations included allocations of Rs 3.65 crore to the general reserve, Rs 18.24 lakh to the corporate social responsibility fund, Rs 36.47 lakh to the employee training fund, and Rs 36.47 lakh to the client protection fund.
• Following these appropriations, retained earnings turned positive to stand at Rs 7.58 crore, recovering from negative retained earnings of Rs 5.48 crore in the prior fiscal period.

Asset Expansion Deposit Mobilization and Equity Base

The institution modified its balance sheet structure by increasing customer lending and expanding deposit collection while reducing institutional borrowings:

• Total Assets: Total assets stood at Rs 607.94 crore at the close of fiscal year 2082/83.
• Customer Loans and Deposits: Loans and advances disbursed to customers expanded to Rs 582.90 crore, while customer deposit collection increased to Rs 149.77 crore.
• Liabilities and Borrowings: Institutional borrowings decreased to Rs 345.59 crore, contributing to total liabilities standing at Rs 527.50 crore.
• Equity Structure: Total equity expanded to Rs 80.45 crore, supported by paid-up share capital of Rs 49.74 crore and an increase in total reserve accounts to Rs 23.13 crore.

Asset Quality Improvement and Reduced Cost of Funds

Key operational indicators reflected gains in risk management, interest rate spreads, and asset quality:

• Non-Performing Loan Ratio: The non-performing loan ratio declined significantly to 12.92 percent, down from 21.39 percent recorded in the prior fiscal period.
• Provisioning Coverage: The ratio of total loan-loss provisioning to total non-performing loans improved to 37.57 percent, providing a stronger buffer against credit risk.
• Cost of Funds and Base Rate: The cost of funds declined to 5.96 percent, while the base rate dropped to 12.05 percent. The interest-rate spread widened to 8.82 percent, with reported interest rates standing at 7.50 percent on customer deposits and 13.88 percent on loans and advances.
• Capital Adequacy Ratio: The capital fund-to-risk-weighted assets ratio improved to 11.44 percent, confirming solid capital positioning relative to regulatory mandates.

Summary of Institutional Performance and Financial Outlook

The fourth-quarter financial statements of Infinity Laghubitta Bittiya Sanstha Limited confirm a strong operational recovery and financial turnaround for fiscal year 2082/83.

The rebound to a net profit of Rs 18.24 crore, the expansion of net interest income to Rs 47.92 crore, the reduction in non-performing loans to 12.92 percent, and the return to positive distributable profit position the microfinance institution for sustained operational stability and future growth in the sector.

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