Finance companies in Nepal are grappling with a surge in non-performing loans (NPLs). As of the first quarter of the current fiscal year, the average NPL ratio of finance companies has climbed to 9.34%, compared to 8.10% in the same period last year.
This increase is attributed to the prolonged slowdown in the domestic economy, which has hampered effective loan disbursement and recovery. Despite implementing various strategies to curb inactive loans, financial institutions have struggled to achieve significant results, leading to further growth in NPLs.
Among finance companies, Janaki Finance saw the steepest rise, with its NPL ratio surging by 17.04 percentage points to 34.64%. Samriddhi Finance’s NPLs also jumped by 18.68 percentage points to reach 23.47%. Similarly, NPLs of Guheshwori Merchant and Nepal Finance have exceeded 10%, while Manjushree Finance recorded the lowest ratio at 3.12%.
Nepal Rastra Bank mandates a maximum NPL threshold of 5%. Institutions exceeding this limit face restrictions on deposit collection, lending, branch expansion, employee remuneration hikes, and dividend distribution. Notably, seven listed finance companies currently exceed the 5% NPL limit.
Chhimek Laghubitta Bittiya Sanstha Limited (CBBL) has published its unaudited financial report for the first quarter of the current fiscal year, showing a slight increase in net profit compared to the same period last year. As of Ashoj’s end, the company has earned a net profit of NPR 23.74 crores, a 7.38% rise from NPR 22.11 crores in the same period of the previous fiscal year. Despite a decline in interest income, a significant 52.04% reduction in impairment charges contributed to the profit increase. During the review period, the company’s net interest income grew by 6.67%, although total operating income decreased by 3.10%. The distributable profit stands at NPR 1.90 billion, with a distributable earnings per share (EPS) of NPR 63.86. The company’s EPS rose by NPR 0.71 to reach NPR 31.91, while its net worth per share stands at NPR 256.99, and the price-to-earnings ratio is 31.50 times. With a paid-up capital of NPR 2.97 billion, CBBL maintains a reserve fund of NPR 4.67 billion. By the end of Ashoj, the company has mobilized NPR 38.86 billion in deposits and extended NPR 36.49 billion in loans.
National Microfinance Financial Institution Limited (NMFBS) has published its unaudited financial results for the first quarter of the current fiscal year. According to the financial report, the institution has seen a significant increase in its net profit.
Financial Highlights:
Net Profit:
The company earned a net profit of Rs. 10.47 Crores in the first quarter.
This represents an impressive 90.32% increase compared to the Rs. 5.50 Crores net profit achieved during the same period last year.
Interest Income and Operating Profit:
The increase in net profit is attributed to higher interest income and operating profit.
The company’s interest income stands at Rs. 30.44 Crores, more than doubling from the previous year.
The operating profit has reached Rs. 14.97 Crores, a 90.32% increase compared to the same period last year.
Capital and Reserves:
The paid-up capital is Rs. 116.55 Crores.
The institution has accumulated a reserve fund of Rs. 140 Crores.
Deposits and Loans:
The microfinance institution has collected Rs. 56.58 Crores in deposits during the review period.
It has mobilized Rs. 21.29 Billion in loans through borrowings from other financial institutions.
Chandragiri Hills Limited (CGH) has released its unaudited financial results for the first quarter of the current fiscal year. According to the report, the company’s net profit has shown a moderate increase compared to the same period last fiscal year.
Financial Highlights:
Net Profit:
The company earned a net profit of Rs. 2.55 Crores in the first quarter.
This is an increase of 19.45% compared to the Rs. 2.13 Crores net profit earned in the same period last year.
Revenue and Expenses:
Despite a decline in revenue, the company’s profit increased due to a reduction in financial expenses and overall costs.
Operating income decreased by 4.99%, and total income fell by 5.69%.
Other income dropped by 87.66%, and total expenses reduced by 4.06%.
Financial Expenses:
The company managed to reduce its financial expenses from Rs. 6.33 Crores to Rs. 4.49 Crores, significantly improving its profitability.
Other Key Metrics:
Earnings Per Share (EPS):
EPS increased by 27 paisa, reaching Rs. 1.66.
Net Worth Per Share:
The company’s net worth per share stands at Rs. 97.06 as of Ashoj’s end.
Price-to-Earnings Ratio (P/E):
The P/E ratio is 56.65 times.
Paid-Up Capital:
The company’s paid-up capital is Rs. 153.40 Crores.
Reserve Fund:
The reserve fund stands at a negative Rs. 4.51 Crores.
Kalinchowk Darshan Limited (KDL) has released its unaudited financial report for the first quarter of the current fiscal year. According to the report, the company’s losses have reduced compared to the same period last fiscal year.
Financial Highlights:
Net Loss:
The company incurred a net loss of Rs. 85.70 Lakhs as of Ashoj’s end.
This is a decrease from the Rs. 98.87 Lakhs loss recorded during the same period last year.
Revenue and Operating Income:
Revenue declined by 2.10%.
Operating income decreased by 2.19%.
Financial Expenses:
Financial expenses dropped significantly by 52.08%, contributing to the reduction in net loss.
Other Key Metrics:
Paid-Up Capital: The company has a paid-up capital of Rs. 59.63 Crores.
Reserve Fund: The reserve fund stands at a negative Rs. 7.78 Lakhs.
Earnings Per Share (EPS): Rs. 1.44.
Net Worth Per Share: Rs. 99.32.
SEE Q1 REPORTS
REPORT FROM CHUKUL.COM
Data Table with Sorting and Download
Financial Data Table
Dimension
Q1 – 081/082
Q1 – 080/081
Q4 – 080/081
Q3 – 080/081
Q2 – 080/081
Diff
Paid Up Capital
59.64 Cr
59.64 Cr
59.64 Cr
59.64 Cr
59.64 Cr
0
Net Profit
-85.70 Lac
-98.87 Lac
2.67 Cr
2.47 Cr
64.35 Lac
-13.32
EPS
-1.43
-1.63
4.53
4.2
1.14
-12.27
Net Worth
99.32
95.17
100.75
101.2
97.94
4.36
EPS_A
-5.72
–
–
–
–
–
Reserve and Surplus
-7.78 Lac
–
77.74 Lac
58.57 Lac
-1.25 Cr
–
Loans and Long Term Liabilities
6.73 Cr
–
7.68 Cr
10.08 Cr
10.30 Cr
–
Property Plant and Equipment
48.66 Cr
49.55 Cr
48.78 Cr
48.98 Cr
49.23 Cr
-1.78
Intangible Assets
3.39 Lac
–
3.58 Lac
–
6.31 Lac
–
Current Assets
76.68 Cr
–
–
–
–
–
Operating Income
40.21 Lac
–
–
–
3.31 Cr
–
Income From Room Sales, Banquets, Restaurants and Others
44.66 Lac
45.61 Lac
8.54 Cr
6.66 Cr
3.43 Cr
-2.1
Depreciation and Amortization Expenses
36.36 Lac
49.85 Lac
1.50 Cr
1.20 Cr
85.49 Lac
-27.05
Finance Cost
28.29 Lac
59.03 Lac
1.83 Cr
1.50 Cr
1.09 Cr
-52.08
Profit Before Tax
-81.73 Lac
–
2.86 Cr
–
64.35 Lac
–
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