Arambha Chautari Laghubitta Logs Astounding 13,765% Profit Spike Amid Robust Interest Earnings and Enhanced Loan Quality

ShareSanskar | Shrawan 14, 2082

In an impressive financial turnaround, Arambha Chautari Laghubitta Bittiya Sanstha Ltd. has reported a remarkable surge in its net profit by the end of the fourth quarter of the previous fiscal year. The microfinance institution posted a net profit of NPR 94.4 million, marking a staggering 13,765.29% increase compared to the mere NPR 680,000 earned during the same period last year. This phenomenal rise in profitability is primarily attributed to a substantial boost in net interest income.

The company recorded a net interest income of NPR 3.7 billion, which is 31.89% higher than that of the previous fiscal year. Additionally, net fee and commission income also witnessed growth, reaching NPR 57.2 million from the previous NPR 45.1 million. The firm’s operating income amounted to NPR 453.8 million, while its operating profit reached NPR 134.8 million, reflecting the institution’s strengthened financial operations.

A notable highlight is the reversal in retained earnings, which now stand at NPR 52.1 million, up from a negative NPR 49.1 million in the last fiscal year. However, total reserves slightly decreased from NPR 167.4 million to NPR 154.1 million. The distributable profit has improved to NPR 52.1 million, showing increased financial flexibility.

Arambha Chautari has also improved its asset quality, with non-performing loans (NPL) dropping to 2.13% from the previous year’s 4.21%. The impairment charge saw a reversal of NPR 23.8 million, supporting the bank\