NIC Asia Laghubitta Reports NPR 10 Crore Profit, Shows Improvement Across Most Financial Indicators

16th April 2026, Kathmandu

The microfinance sector in Nepal is witnessing a notable turnaround as NIC Asia Laghubitta Bittiya Sanstha Limited unveils its third quarter financial report for the current fiscal year.

NIC Asia Laghubitta Profit

Demonstrating remarkable operational efficiency and a commitment to transparency, the institution released its data within just three days of the quarter ending. The highlights of the report show a dramatic surge in NIC Asia Laghubitta profit, signaling a robust recovery phase that has caught the attention of investors and financial analysts across the country.

Significant Growth in Net Profit and Interest Income

The most striking figure in the recent disclosure is the net profit. According to the published report, the company earned a net profit of NPR 106.9 million, or approximately 10.69 crore, during the nine month period ending mid April. To put this in perspective, the company reported a net profit of only NPR 1.3 million during the same period in the previous fiscal year. This massive leap in NIC Asia Laghubitta profit indicates that the strategic shifts and operational adjustments made by the management are yielding high returns.

Parallel to the net profit growth, the net interest income of the institution has nearly doubled. It rose from NPR 49.5 million to over NPR 85.4 million during the review period. This is a critical indicator of the core lending health of a microfinance institution, suggesting that the bank has successfully managed its interest spreads despite the fluctuating economic environment in Nepal.

Surge in Operating Performance and Revenue

The operational efficiency of NIC Asia Laghubitta is further evidenced by the surge in operating profit. The figure skyrocketed from a modest NPR 1.8 million to an impressive NPR 159 million. Total operating income also saw a substantial rise, climbing from NPR 563.3 million to NPR 954.6 million.

One of the most encouraging aspects of this financial report is the controlled growth of operating expenses. While total income grew significantly, expenses only rose from NPR 626.7 million to NPR 664.9 million. This discipline in cost management is a primary driver behind the enhanced NIC Asia Laghubitta profit margins seen this quarter.

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Key Shareholder Metrics and Performance Indicators

For investors, the Earnings Per Share or EPS is a vital metric to track. The EPS for NIC Asia Laghubitta improved significantly, moving from a mere NPR 0.10 to NPR 8.20. This indicates a much stronger capacity for the company to generate value for its shareholders. Additionally, the net worth per share now stands at NPR 127.35, supported by a paid up capital of NPR 1.7394 billion.

The scale of operations also continues to expand. The institution has disbursed loans totaling NPR 19.72 billion and successfully collected deposits worth NPR 2.84 billion. With total assets now exceeding NPR 23.37 billion, the microfinance giant is clearly expanding its reach into the rural and semi urban markets of Nepal.

Addressing the Challenges: NPL and Distributable Profit

While the headline NIC Asia Laghubitta profit figures are overwhelmingly positive, the report does highlight some areas that require cautious monitoring. The non performing loan or NPL ratio has increased from 13.55 percent to 16.59 percent. A rising NPL ratio signals an increase in credit risk and suggests that asset quality remains a challenge that the institution must manage proactively in the coming months.

Furthermore, the distributable profit remains in negative territory at NPR 323.7 million. This results in a distributable earnings per share of negative NPR 24.81. For shareholders looking for immediate dividends, this particular metric suggests that the company may need more time to clear past obligations before resuming regular dividend payouts.

Conclusion: A Trajectory of Recovery

Overall, the third quarter results for NIC Asia Laghubitta Bittiya Sanstha Limited present a narrative of strong recovery and growth. The massive jump in NIC Asia Laghubitta profit to 10.69 crore is a testament to the resilience of the organization. While the rising NPL and negative distributable profit are factors that necessitate a balanced outlook, the core income indicators and operational efficiency suggest a bright future. Investors should continue to monitor how the institution handles its credit risks while celebrating the significant return to profitability.

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