RSDC Laghubitta’s Profit Drops by 19% as Net Interest Income Declines

RSDC Laghubitta Bittiya Sanstha Limited (RSDC) has published its unaudited financial statement for the first quarter of the current fiscal year (FY 2082/83). The report indicates a significant decline in net profit, which fell by 19.12 percent compared to the same period in the previous fiscal year.

The microfinance institution reported a net profit of Rs. 21.10 million for the first three months of the current FY, down from Rs. 26.09 million earned during the corresponding period of the last FY. The decline in net profit is primarily attributed to a sharp decrease in both Net Interest Income and Net Fee and Commission Income.

During the review period, the company's Net Interest Income dropped by 30.04 percent, while Net Fee and Commission Income saw a massive decline of 41.28 percent. Consequently, the Total Operating Income fell by 30.61 percent, and Operating Profit decreased by 19.12 percent.

Following the dip in profit, the company’s Earnings Per Share (EPS) also fell by Rs. 2.89, settling at Rs. 8.16. As of Ashoj end (Mid-October), the company’s Price-to-Earnings (PE) ratio stood at 73.06 times, and the Net Worth Per Share was recorded at Rs. 128.04.

Despite the drop in net profit, the microfinance company has a solid base. As of the end of the first quarter, the company’s distributable profit stood at Rs. 99.35 million, translating to a Distributable EPS of Rs. 38.43.

RSDC Laghubitta, which has a paid-up capital of Rs. 1.03 billion, holds a reserve and surplus of Rs. 289.96 million. The company managed to extend loans and advances worth Rs. 5.57 billion during the three-month period, financed by deposits and borrowings amounting to Rs. 5.15 billion. The Capital Fund to Risk Weighted Assets (RWA) ratio is 21.57 percent, and the Non-Performing Loan (NPL) ratio is 4.44 percent.