First Microfinance proposes 15.79% cash dividend for the last fiscal year

ShareSansar, August 3:

First Microfinance Development Bank Limited, the first among all the listed companies to come up with the financial report for the fourth quarter, has also become the first company to pledge dividend for the last fiscal year 2070/71.

A meeting of the Board of Directors of the microfinance institution held on August 1 has decided to propose 15.79 percent dividend to their share holders.

The proposed dividend is, however, subject to approval from Nepal Rastra Bank and the upcoming AGM of the microfinance institution.

Only on July 17, First Microfinance had published its unaudited financial report for the fourth quarter of the last fiscal year 2070/71, as per which its net profit increased by 49.7 percent to Rs 2.56 crore, up from Rs 1.71 crore during the same period of the previous fiscal year.

Its borrowing, too, increased from a little more than Rs 1 arba to Rs 1.43 arba.

Similarly, the microfinance’s lending increased to Rs 1.2 arba (including net of general loan loss provision of Rs 1.21 crore) from Rs 75.85 crore.

Its net interest income has also surged in the fourth quarter compared to the preceding quarter of the last fiscal year, up from Rs 3.35 crore to Rs 4.62 crore.

Another impressive thing about First Microfinance’s latest financial report is that its non-performing loan remains zero despite such a significant rise in deposit and loan mobilization.