Jeevan Bikas Laghubitta Bittiya Sanstha Limited Posts Strong Profit Growth in Second Quarter of FY 2082/83

Kathmandu — Jeevan Bikas Laghubitta Bittiya Sanstha Limited has reported a sharp improvement in its financial performance in the second quarter of the current fiscal year 2082/83, recording a significant rise in profit and operating income. According to the company’s unaudited financial statement, the microfinance institution earned a net profit of Rs. 389 million during the review period.

This represents an 89.37 percent increase compared to Rs. 205.4 million recorded in the same period of the previous fiscal year. The near doubling of profit reflects improved operational efficiency, higher lending activities, and better income management, analysts say.

The company’s net interest income also registered steady growth. During the second quarter, net interest earnings reached Rs. 1.04 billion, up from Rs. 948.1 million in the corresponding period last year. This marks a growth of around 9.76 percent, indicating expansion in loan portfolios and relatively stable interest margins.

Operating profit showed even stronger performance. Jeevan Bikas recorded an operating profit of Rs. 702.3 million, a jump of 139.31 percent from Rs. 293.4 million a year earlier. The sharp rise suggests improved cost control and stronger revenue generation from core microfinance activities.

As profitability improved, earnings per share (EPS) also increased significantly. By the end of the second quarter, EPS stood at Rs. 50.65, compared to Rs. 30.49 in the same period last year. The higher EPS signals better returns for shareholders and strengthens investor confidence in the company’s performance.

However, the company’s asset quality showed some signs of pressure. The non-performing loan (NPL) ratio increased from 4.56 percent to 5.98 percent during the review period. Analysts note that while profit growth is encouraging, rising bad loans could pose risks if not managed carefully in the coming quarters.

By mid-January, the company’s distributable profit had reached Rs. 1.1039 billion. Its net worth per share stood at Rs. 266.15, while the price-to-earnings (P/E) ratio was recorded at 25.92 times, reflecting relatively strong market valuation supported by improved earnings.

In terms of capital structure, Jeevan Bikas has maintained a paid-up capital of Rs. 1.53 billion and a reserve fund of Rs. 1.10 billion. These figures indicate a stable financial base that supports further business expansion and risk absorption capacity.

The company has also expanded its business volume. It has mobilized deposits worth Rs. 14.64 billion and extended loans totaling Rs. 28.39 billion. Its total assets have reached Rs. 31.35 billion, reflecting continuous growth in operations and market presence.

Financial experts say the latest results show that Jeevan Bikas has strengthened its profitability and operational capacity in a competitive microfinance sector. However, they emphasize that controlling rising non-performing loans and maintaining credit discipline will be crucial for sustaining long-term growth.

Overall, the second-quarter performance suggests that the company is on a positive financial trajectory, supported by rising income and expanding operations. If asset quality is managed effectively, analysts believe Jeevan Bikas could further consolidate its position in Nepal’s microfinance industry in the coming years.