Jeevan Bikas Laghubitta Profit Growth Update
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9th February 2026, Kathmandu
Jeevan Bikas Laghubitta Bittiya Sanstha Limited (JBLB) has reported a staggering surge in its financial performance for the second quarter of the fiscal year 2082/83. According to the unaudited financial report covering the period up to Poush end 2082, the microfinance institution achieved a net profit of NPR 38.90 crore. This represents an 89.37 percent increase compared to the NPR 20.54 crore earned during the same period in the previous fiscal year.
Jeevan Bikas Laghubitta Profit
The sharp rise in profitability is primarily driven by a substantial turnaround in operating profit and efficient management of impairment charges, despite the broader credit challenges currently facing Nepal’s microfinance sector.
Core Financial Performance and Earnings
The surge in the bottom line has significantly boosted shareholder metrics. The company’s annualized earnings per share (EPS) now stands at NPR 50.65, a sharp increase from NPR 30.49 in the previous year. This growth reinforces the institution’s position as one of the most profitable microfinance entities listed on the Nepal Stock Exchange.
Key income indicators for the second quarter include:
- Net Interest Income: Grown by 9.76 percent to reach NPR 1.04 billion.
- Total Operating Income: Increased to NPR 1.19 billion, up from NPR 1.12 billion.
- Operating Profit: Surged by 139.31 percent to reach NPR 70.23 crore.
The massive leap in operating profit suggests that the institution has successfully navigated the previous year’s high provisioning requirements, allowing a larger portion of its operational revenue to flow directly to the net profit.
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Balance Sheet Strength and Market Position
Jeevan Bikas Laghubitta continues to maintain a massive scale of operations with total assets exceeding NPR 31.35 billion. The institution’s capital structure remains robust, supported by significant reserves and retained earnings.
- Paid-up Capital: NPR 1.53 billion.
- Retained Earnings: NPR 1.10 billion.
- Reserves: NPR 1.61 billion.
- Total Deposits: NPR 14.64 billion.
- Total Loan Disbursement: NPR 28.39 billion.
The company’s net worth per share currently stands at NPR 266.15. With the stock trading at a price-earnings (P/E) ratio of 25.92 times at the end of the quarter, the market valuation appears moderate relative to its high growth rate.
Asset Quality Challenges
Despite the stellar profit growth, the institution faces rising pressure on asset quality. The non-performing loan (NPL) ratio increased to 5.98 percent from 4.56 percent in the previous year. This trend reflects the ongoing difficulties in loan recovery within the microfinance sector. While the current profitability provides a strong cushion for potential loan loss provisions, the management will need to prioritize credit monitoring to ensure that bad loans do not erode the gains made in the first half of the year.
Corporate Actions and Dividend
The company recently concluded its 7th Annual General Meeting on Poush 29, 2082, where it endorsed a 14.7368 percent total dividend for the fiscal year 2081/82. This distribution included 14 percent bonus shares and a 0.7368 percent cash dividend for tax purposes. The issuance of bonus shares has successfully helped the institution meet its capital adequacy requirements while rewarding its long-term investors.
Future Outlook
Jeevan Bikas Laghubitta is currently on a strong growth path, fueled by rising interest income and a high-yielding loan portfolio. If the institution can stabilize its NPL ratio below the 5 percent mark in the coming quarters, it is well-positioned to maintain its status as a top-tier performer. The focus for the remainder of 2082/83 will likely shift toward digital integration and broadening its reach in underserved rural areas to sustain its deposit growth.
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