First Microfinance Q3 earning surges by 51.58% to Rs 5.76 crore; to publish 50% right share notice soon

First Microfinance Development Bank Limited (FMDBL) has reported profit growth of 51.58 percent in the third quarter (Q3) of the current fiscal year 2073/74. According to the unaudited financial report for the third quarter published today, the microfinance has stated that its net profit surged to Rs 5.76 crore in third quarter as compared to Rs 3.80 crore in the corresponding quarter of the last fiscal year 2072/73. The microfinance company’s borrowing has increased from Rs 2.61 arba in the corresponding quarter of the previous year to Rs 3.28 arba in the third quarter of the ongoing fiscal year 2073/2074. Its net interest income has also increased to Rs 9.51 crore in the Q3 up from 6.53 crore compared to the corresponding quarter of the last fiscal year. First Microfinance has paid up capital of Rs 26.45 crore and has reserve of Rs 9.98 crore. FMDBL’s non-performing loan remains zero as stated by the latest financial report. Its annualized Earning Per Share (EPS) stands at Rs 29.06, net worth per share at Rs.137.74, and P/E ratio at 39.05 times. Accounting for the upcoming 50% right share, its EPS stands at Rs 19.38. First Microfinance Development Bank had recently received approval from SEBON for the issuance of right shares in the ratio 2:1. The book closure date for the right issue was set for Chaitra 30, 2073. The company will soon publish offer letter for the right share. Capital Plan: 15% bonus and further 50% right next year As per NRB’s Monetary Policy for the FY 2073/74, wholesaler microfinance companies should maintain a minimum paid up capital up to Rs 60 crore till FY 74/75. As per its capital plan, FMDBL will issue further 50% right share next year as well. Its current paid up capital stands at Rs 26.45 crore. After issuance of 50% right share, its paid up capital will reach Rs 39.67 crore. As per its capital plan, FMDBL will provide 15% bonus share to its shareholders in the FY 2073/74. After this, its paid up capital will reach Rs 45.62 crore. It will again issue 50% right share next year, after which its paid up capital will reach Rs 68.44 crore.