Nerude Mirmire Laghubitta Posts NPR 2.79 Million Net Loss in Q1 as NPL Climbs to 21.73 Percent

28th October 2026, Kathmandu

Nerude Mirmire Laghubitta Bittiya Sanstha Limited has reported a challenging financial performance for the first quarter of the fiscal year 2083/84, transitioning from net profitability to a net loss alongside a sharp surge in non-performing loans.

Nerude Mirmire Net Loss 

Financial Performance and Q1 Earnings Contraction

According to the un-audited financial statements published for the period ending Ashwin 2083, the microfinance institution experienced severe margin pressures across its core operational indicators.

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• Net Profit and Loss Transition: The institution registered a net loss of NPR 2.79 million during the review period, marking a significant downturn compared to the net profit of NPR 55.36 million recorded in the corresponding period of the previous fiscal year.
• Net Interest Income Decline: Net interest income dropped by approximately 28 percent to stand at NPR 288.94 million, down from NPR 403.29 million previously, driven by a contraction in gross interest earnings.
• Fee and Commission Growth: Net fee and commission income improved to NPR 44.56 million, compared to NPR 37.68 million in the corresponding quarter of last year.
• Total Operating Revenue: Total operating income decreased from NPR 440.98 million to NPR 333.50 million, as gains in fee income failed to offset lower interest revenue.
• Impairment Charges: The institution set aside NPR 102.74 million as impairment charges for potential loan and asset losses, reducing net operating income to NPR 230.76 million.
• Operating Result: Driven by high operating expenses, including employee costs of NPR 207.85 million and other operating expenses of NPR 51.43 million, the institution posted an operating loss of NPR 3.07 million, compared to an operating profit of NPR 76.04 million previously.

Asset Quality and Per Share Metrics

Loan portfolio quality indicators reflected mounting asset recovery challenges and solvency pressures.

• Non-Performing Loans (NPL): The ratio of non-performing loans escalated to 21.73 percent of total credit portfolios, compared to 15.70 percent in the same period last year.
• Per Share Earnings: Annualized earnings per share (EPS) turned negative at NPR 8.01, dropping from a positive EPS of NPR 15.84 in the previous corresponding quarter.
• Net Worth Position: The annualized net worth per share stood at NPR 184.40 as of Ashwin end, compared to NPR 186.59 previously.
• Distributable Profit: Total distributable profit remained negative at NPR 158.11 million, with an annualized negative distributable profit of NPR 45.25 per share.

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