Nepal’s Microfinance Sector Shows Strong Financial Recovery in Fiscal Year 2082/83
20th August 2026, Kathmandu
Nepal’s microfinance sector is showing clear signs of financial recovery and operational stability, overcoming persistent pressures stemming from economic slowdowns, sluggish commercial activities, and ongoing public protests.
Nepal’s Microfinance Sector Financial Recovery
The substantial growth in overall profitability across the sector has been primarily driven by loan restructuring frameworks introduced by Nepal Rastra Bank, which facilitated easier installment repayments for borrowers and significantly reduced non-performing loan burdens.
Combined Net Profit and Overall Growth Trajectory
According to unaudited financial statements from all 50 microfinance institutions listed on the Nepal Stock Exchange, the sector achieved a remarkable net profit increase of 153.11 percent in fiscal year 2082 83.
- Total Combined Net Profit FY 2081/82: 4.75 billion Nepalese rupees
- Total Combined Net Profit FY 2082/83: 12.02 billion Nepalese rupees
- Year-on-Year Growth: An increase of 7.27 billion Nepalese rupees
Financial Breakdown of Individual Microfinance Institutions
Chhimek Laghubitta: Ranked first in total profits, generating 129.81 million Nepalese rupees compared to 121.29 million in the previous year, reflecting a 7.02 percent increase. Its bad-loan ratio improved from 2.55 percent to 2.30 percent.
Jeevan Bikas Laghubitta: Secured second place with a net profit of 108.22 million Nepalese rupees, representing a 53.20 percent increase from 70.64 million Nepalese rupees. Its bad-loan ratio declined from 6.65 percent to 5.33 percent.
Deprosc Laghubitta: Ranked third, posting a net profit of 98.94 million Nepalese rupees compared to 57.69 million in the prior year, marking a 71.52 percent growth. Its bad-loan ratio dropped significantly from 11.30 percent to 6.49 percent.
National Laghubitta: Ranked fourth with a net profit of 89.13 million Nepalese rupees, up 53.79 percent from 57.95 million Nepalese rupees, while reducing its bad-loan ratio from 5.45 percent to 4.16 percent.
Sana Kisan Bikas Laghubitta: Reported a net profit of 65.31 million Nepalese rupees, reflecting a 25.36 percent decline from 87.50 million Nepalese rupees. Its bad-loan ratio rose slightly from 2.65 percent to 2.96 percent.
Forward Microfinance: Successfully returned to profitability by posting 62.36 million Nepalese rupees in net profit, following a loss of 36.46 million Nepalese rupees in the previous year. Its bad-loan ratio decreased from 19.86 percent to 16.17 percent.
Swabalamban Laghubitta: Generated 61.98 million Nepalese rupees in net profit, representing a 50.60 percent increase from 41.15 million Nepalese rupees. Its bad-loan ratio decreased from 9.49 percent to 8.92 percent.
Global IME Laghubitta: Recorded a significant surge of 435.33 percent in profit, earning 40.11 million Nepalese rupees up from 7.49 million in the prior year, alongside a drop in its bad-loan ratio from 10.16 percent to 8.70 percent.
Nirdhan Utthan Laghubitta: Reported a net profit of 35.10 million Nepalese rupees, down 64.99 percent from 100.03 million Nepalese rupees, as its bad-loan ratio increased from 9.91 percent to 12.80 percent.
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Swarojgar Laghubitta: Earned a net profit of 31.17 million Nepalese rupees, marking a 41.29 percent rise from 22.06 million Nepalese rupees, with a bad-loan ratio reduction from 7.59 percent to 6.65 percent.
CYC Nepal Laghubitta: Turned profitable with 29.48 million Nepalese rupees in net earnings, recovering from a net loss of 9.06 million Nepalese rupees in the prior fiscal year.
Matribhumi Laghubitta: Reversed a previous loss of 52.33 million Nepalese rupees to post a profit of 28.36 million Nepalese rupees, while improving its bad-loan ratio from 33.76 percent to 26.61 percent.
Grameen Bikas Laghubitta: Earned 26.67 million Nepalese rupees, showing a 275.82 percent surge from 7.10 million Nepalese rupees, with its bad-loan ratio dropping from 9.96 percent to 6.72 percent.
Asha Laghubitta: Recorded 26.19 million Nepalese rupees in profit, up 155.22 percent from 10.26 million Nepalese rupees, despite an increase in its bad-loan ratio from 6.49 percent to 8.57 percent.
Srijanshil Laghubitta: Reported 3.37 million Nepalese rupees in net earnings, down 25.25 percent from 4.51 million Nepalese rupees, with its bad-loan ratio rising from 9.79 percent to 11.48 percent.
Manushi Laghubitta: Returned to profitability by earning 2.70 million Nepalese rupees, up from a previous loss of 3.51 million Nepalese rupees, reducing its bad-loan ratio from 11.37 percent to 8.60 percent.
Dhaulagiri Laghubitta: Earned 2.09 million Nepalese rupees in profit, rebounding from a loss of 3.00 million Nepalese rupees, while reducing its bad-loan ratio from 22.44 percent to 20.52 percent.
Jana Utthan Samudayik Laghubitta: Rebounded from a loss of 0.14 million Nepalese rupees to post a profit of 1.82 million Nepalese rupees, though its bad-loan ratio climbed from 9.35 percent to 17.14 percent.
Swastik Laghubitta: Recorded a profit of 1.22 million Nepalese rupees, recovering from a prior loss of 0.90 million Nepalese rupees, while its bad-loan ratio rose from 17.25 percent to 23.50 percent.
Wean Nepal Laghubitta: Earned 0.83 million Nepalese rupees in net profit, reflecting a 774.42 percent increase from 0.10 million Nepalese rupees, despite an increase in its bad-loan ratio from 10.69 percent to 16.12 percent.
