Arun Finance reports net loss of Rs 3.56 lakh; NPL at 97.90% with negative reserve of Rs 15.42 crore

Arun Finance Limited (ARUN) has posted a net loss of Rs 3.56 lakh in the second quarter of the fiscal year 2073/74. Its reserve has reached to a negative Rs 15.42 crore, which is lower than its paid up capital of Rs 15 crore. As per the unaudited quarterly report published by the finance company today, its net interest income has increased to Rs 10.55 lakh, up from a deficit of Rs 13.77 lakh in the corresponding quarter last year. Likewise, its operating income has also increased to Rs 28.88 lakh from an operating loss of Rs 12.88 lakh in the same period last year. However, it has increased its provision amount for possible loss to Rs 11.33 lakh in this year from Rs 5.49 lakh last year. Its non-performing loan (NPL) has reached 97.90%. Its annualized EPS now stands at a negative Rs 0.24 with a negative net worth per share of Rs 2.84. Nepal Rastra Bank had earlier declared Arun Finance as crisis-ridden. Its trading was resumed after it came under the new management and most of its shares were bought by Hathway Investment Nepal Ltd.