How Did the 64 Microfinance Companies Performed Till The Second Quarter Of Fiscal Year 2079/2080?
Wed, Mar 15, 2023 1:14 PM on Financial Analysis, National, Latest,
Nepal Rastra Bank (NRB) has published the supervision report of Microfinance companies till the second quarter of Fiscal Year 2079/80 i.e till Poush 2079.
There were 65 "D" class microfinance financial institutions by the end of Ashad 2079, and 64 microfinance financial institutions are still active and under NRB's supervision as of the end of Poush 2079. The Nepal Rastra Bank has given the report that, overall, highlights the situation of the microfinance companies to date. The report is based on the unrefined financial statements up to the second quarter of the financial year 2079/80 submitted by the aforementioned microfinance institutions.
Capital: Primary capital and capital funds, taken together, made up 12.23 percent and 13.45 percent of the risk-weighted assets of microfinance financial institutions at the close of Poush 2079. The risk-weighted assets of microfinance financial institutions grew by 1.07 percent during the review period, while their paid-up capital increased by 2.23 percent. The paid-up capital and risk-weighted assets of microfinance financial institutions increased by 16.57 percent and 15.60 percent, respectively, during the same time of the prior fiscal year.
Financial Sources: The overall number of microfinance organizations that offer wholesale loans has generally increased. Capital and debt are the microfinance financial organizations' primary financial resources. Wholesale microfinance financial institutions had amassed Rs. 50 Arba by the end of Poush 2079, which appears to have grown by 5.57 percent from the end of Ashad 2079. The gathering of financial resources increased by 10.49 percent in the second quarter of the fiscal year 2078–79.
Loans and Concessions: By the end of Poush 2079, the percentage of non-performing loans from microfinance financial institutions that offered wholesale loans have increased. In comparison to Ashad 2079, the total quantity of loans and mortgages disbursed by wholesale loan providers and microfinance financial organizations rose by 3.17 percent to Rs. 59 Arba 78 Crores. Only Rs. 52 crores (0.87 percent) of the microfinance financial institutions' total loans and receivables during the evaluation period were non-performing loans.
Loans and Advances: By the end of Poush 2079, there has been a significant increase in the amount of non-performing loans of microfinance financial institutions providing retail loans. The total amount of loans and mortgages disbursed by retail credit providers microfinance financial institutions decreased by 0.08 percent compared to Ashad 2079 and reached Rs. 3 Kharba 91 Arba 44 crores.
Investments: The amount of funds that microfinance financial organizations are investing in has increased. The entire investment made by microfinance institutions at the end of Poush 2079 was Rs. 9 Arba 37 crores, which is a 53.72 percent increase from the end of Ashad 2079. The overall investment fell by 32.61 percent in the second quarter of the previous fiscal year.
Risk-Weighted Assets and Total Assets: At the end of Poush 2079, both the total assets and risk-weighted assets of microfinance financial institutions have increased. During that period, the total assets of Microfinance Financial Institutions were Rs. 5 Kharba 11 Arba 8 crores. This is 0.62 percent more than the end of Ashad 2079. During the same period of the previous financial year, total assets increased by 12.29 percent. At the end of Poush 2079, the total risk-weighted assets were 94.41 percent of the total assets, which was 93.99 percent at the end of Ashad 2079.
Profitability: The total profit of the microfinance financial institutions offering wholesale loans has decreased over the review period compared to the second quarter of the prior fiscal year. By the end of Poush 2079, the microfinance financial institutions had interest expenditures of Rs. 1 Arba 91 crores and revenue of Rs. 3 Arba 39 crores.
Liquidity Position: The liquid assets of financial institutions providing micro-loans to the general population have increased over the course of the review period. By the end of Poush 2079, these microfinance financial institutions had liquid assets totaling Rs. 4 Arba 48 Crores, a rise of 24.90% over Ashad 2079.