National Microfinance shows slight growth in net profit ; EPS shrinks to Rs 65.33

National Microfinance Bittiya Sanstha Ltd. has published the report for 2nd quarter of the fiscal year 2074/75.

The company has earned a net profit of Rs 3.92  crores till the end of 2nd quarter. The net profit was Rs 3.78  crores in the corresponding quarter of the previous fiscal year. This accounts for a rise of  3.71%. NMFBS now has an eps of Rs 65.33.

A massive growth is seen both in the interest income and interest expense of the company. The interest income has surged to Rs 16.15 crore, stating a growth of 70.40%. Interest expense has grown by massive 188.12% to Rs 8.22 crore. The net interest income increased by 19.75% to Rs 7.94 crore. 

Staff expense has increased to Rs 3.13  crores, showing a growth of 69.01%. The operating expense surged by 10.68% to Rs 1.02crores.

Company’s operating profit increased by 3.71% to Rs 5.94 crores. 

Both deposit collection and lending has shown an average growth. Deposit collection has surged to Rs 49.71 crore, up from Rs 1.76 crore last year showing a growth of 181.66%. Company's lending has increased by 62.03% to Rs 1.83 arab.  NMFBS has NPL of 0.91  %

However, company’s reserve has expanded by 45.23% to Rs  12.48 crore. The company now has a networth of Rs 204. 

Positive sides:

• Decent growth in deposit and lending.
• Reserve increased by 45.23%

Negative Sides:

• Hefty rise in interest expense.
• EPS decreased to Rs 65.33

Key Ratios:

EPS:                Rs 65.33
Networth:         Rs 204
Cost of Fund:   8.89%
NPL:                0.91%