Himalayan Laghubitta Bittiya Sanstha Limited, a subsidiary of Himalayan Bank Limited, has published its unaudited financial results for the fourth quarter of Fiscal Year 2081/82. The results reveal a steady growth in profitability, robust loan growth, and disciplined cost management—underscoring its strong positioning in the microfinance sector of Nepal.
Key Financial Highlights
1. Net Profit Surges to NPR 91.7 Million
The company reported a net profit of NPR 91.73 million for FY 2081/82, a substantial increase compared to the previous year. This growth was driven by a rise in interest income, controlled expenses, and efficient loan portfolio management.
2. Interest Income and Expense
- Interest Income: NPR 655.80 million
- Interest Expense: NPR 194.92 million
- Net Interest Income: NPR 460.88 million
This marks an increase in net interest income compared to the last fiscal year (NPR 349.57 million), reflecting stronger lending activity and widening interest spreads.
3. Operating Profit and Net Operating Income
- Operating Profit: NPR 54.72 million
- Net Operating Income: NPR 490.17 million
The company successfully managed costs despite an increase in personnel and other operating expenses.
4. Earnings Per Share (EPS):
- Annualized EPS: NPR 28.70
This is a healthy EPS for a microfinance institution, signaling strong shareholder value creation.
Distributable Profit and Dividend Outlook
As per NRB regulations, the distributable profit stands at NPR 63.91 million. After setting aside reserves and provisions, the company has retained a healthy amount eligible for dividend distribution. This sets the stage for potential bonus shares or cash dividend announcements in the upcoming AGM.
Balance Sheet Overview
Total Assets & Liabilities:
- Total Assets: NPR 5.68 billion
- Total Liabilities: NPR 5.14 billion
- Total Equity: NPR 547.9 million
The balance sheet size increased significantly from NPR 4.13 billion in the previous fiscal year, indicating healthy growth in core business activities.
Loan Portfolio:
- Loans and Advances to Customers: NPR 4.92 billion, up from NPR 3.74 billion YoY.
This represents a 31.58% YoY growth—a strong indication of market penetration and credit disbursement.
Key Financial Ratios (NRB Directive)
| Indicator | Current Year (Q4) |
| Capital Fund to RWA | 9.49% |
| NPL (Non-Performing Loan) | 5.33% |
| Loan Loss Provision to NPL | 53.49% |
| Base Rate | 10.37% |
| Interest Rate Spread | 6.24% |
While NPL has increased slightly compared to the previous year (4.19%), the provisioning coverage ratio of over 53% provides a safety cushion.
Equity Composition
| Component | Amount (NPR) |
| Share Capital | 391.88 million |
| Share Premium | 0 |
| Retained Earnings | 65.46 million |
| Reserves | 90.53 million |
| Total Equity | 547.79 million |
The retained earnings and reserves base ensures long-term sustainability and readiness for future capital adequacy requirements.
Additional Notes:
- Adjusted Interest Rate: Between 12.34%–18.31%
- Deposits from Customers: NPR 904.28 million
- Borrowings: NPR 3.82 billion
- The company has placed NPR 2.4 million in Rastriya Bank as a statutory reserve.
- There are no deferred taxes, and tax liabilities remain moderate at NPR 16.4 million.
Share Auction Notice (Right Shares)
The company is also offering unsold right shares to the general public at a face value of NPR 100 per share:
- Total shares: 1,91,940 units
- Issue Manager: NMB Capital Limited
- Interested investors can apply through MeroShare and designated ASBA members.
Final Thoughts
Himalayan Laghubitta Bittiya Sanstha Limited has delivered a solid performance in FY 2081/82, marking growth in profitability, loan portfolio, and operational efficiency. While there is a rise in NPL, the institution has maintained a strong provisioning base and capital adequacy. The management’s ability to maintain a healthy EPS and distributable profit suggests continued investor confidence and the possibility of decent dividends.
This performance reinforces Himalayan Laghubitta’s status as a promising player in Nepal’s microfinance industry, with a clear vision for sustainable financial inclusion.
Report: Himalayan Laghubitta’s FY 2081/82 Q4 Financial Highlights
