Upakar Laghubitta Profit Increases in Third Quarter FY 2082/83 with Growth in Financial Indicators
7th May 2026, Kathmandu
Upakar Laghubitta Bittiya Sanstha Limited has officially released its unaudited financial results for the third quarter of the fiscal year 2082/83.
Upakar Laghubitta Profit Growth
The report highlights a positive trajectory for the microfinance institution, showcasing a notable Upakar Laghubitta profit growth alongside improvements in several core financial metrics. Despite the broader economic challenges facing the microfinance sector in Nepal, the company has managed to bolster its bottom line through enhanced operational efficiency and a sharp rise in interest-based income.
Upakar Laghubitta Net Profit Increases by 7 Percent
The headline figure for the third quarter is the company’s net profit, which reached NPR 3.06 crore. When compared to the NPR 2.86 crore earned during the same period in the previous fiscal year, this represents a steady year-on-year increase of approximately 7 percent. This growth in profitability is a testament to the institution’s ability to navigate a complex lending environment while maintaining a focus on its primary income streams.
Strong Growth in Net Interest Income and Operations
The backbone of the recent profit surge lies in the institution’s core banking activities. Upakar Laghubitta recorded a significant jump in its net interest income, which is the difference between the interest earned on loans and the interest paid on deposits.
Net Interest Income Performance: In the current fiscal year, this figure surpassed NPR 15.15 crore, compared to NPR 11.68 crore in the previous year—a remarkable growth of 29.71%.
Total Operating Income: The company’s total operating income also saw a substantial rise, climbing from NPR 13.48 crore to over NPR 17.60 crore. This 30.51% increase indicates that the microfinance institution is successfully expanding its business reach and diversifying its operational revenue.
Furthermore, the operating profit witnessed an 11.90% improvement, rising to NPR 4.57 crore. This upward trend in operating metrics suggests that the company is maintaining positive momentum despite the rising costs of doing business.
Analysis of Key Financial Ratios: EPS and Net Worth
For investors, the Earnings Per Share (EPS) and Net Worth are critical indicators of value. Upakar Laghubitta has shown a slight but positive shift in these figures during the review period.
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Earnings Per Share (EPS): The EPS currently stands at NPR 38.50, an increase from the previous year’s NPR 35.98.
Net Worth Per Share: The net worth per share is reported at a healthy NPR 298.20.
Base Rate: The institution maintains a base rate of 12.40%, reflecting the cost of funds in the current market.
While the net profit is in the green, the distributable profit remains in negative territory at NPR 2.52 crore. However, this is an improvement from the negative NPR 3.83 crore reported last year, suggesting that the company is gradually clearing its previous financial burdens.
Rising Non-Performing Loans: A Growing Concern
Despite the positive news regarding Upakar Laghubitta profit growth, the report reveals a significant challenge: a rise in the Non-Performing Loan (NPL) ratio. The bad loan ratio surged from 4.94% in the previous year to 10.74% in the current quarter.
This spike in NPLs is reflective of the wider credit risk pressures currently impacting the microfinance sector in Nepal. High NPL ratios can strain liquidity and require higher provisioning, which could impact future profitability if not managed aggressively.
Financial Position: Deposits and Loan Disbursement
By the end of the third quarter (Chaitra), Upakar Laghubitta’s balance sheet showed a strong scale of operations. The company has successfully mobilized loans worth NPR 2.63 billion among its customers. On the resource side, it has collected deposits totaling NPR 1.53 billion from its members and clients. With a paid-up capital of NPR 10.61 crore and a robust reserve fund of NPR 21.03 crore, the institution maintains a solid capital base to support its future growth.
Conclusion
The third-quarter financial report for FY 2082/83 paints a picture of a resilient institution. Upakar Laghubitta Bittiya Sanstha Limited has demonstrated its ability to grow its core income and net profit in a competitive landscape. While the increase in bad loans is a signal for caution, the overall growth in interest income and the narrowing of negative distributable profit provide a hopeful outlook for shareholders. As the fiscal year progresses, the focus will likely remain on maintaining this profit momentum while implementing stricter credit controls to bring down the non-performing loan ratio.
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