Mithila Laghubitta posts 35.5% net profit by the fourth quarter

ShareSansar, September 21:

Mithila Laghubitta Bikas Bank Limited has reported awesome 35.50 percent net profit rise in the last fiscal year 2070/71.

According to the microfinance institution which floated its Initial Public Offering earlier this year, its net profit rose to Rs 26.22 lakh, up from Rs 19.35 lakh as of the previous fiscal year 2069/70.

The profit was fuelled by its core business as it net interest income surged to  Rs 85.85 lakh by the fourth quarter end as compared to Rs 63.67 lakh at the end of the corresponding quarter of the previous fiscal year.

It mobilized Rs 2.99 crore in borrowing and Rs 5.59 crore in loan as compared to Rs 6.99 crore in borrowing and Rs 4.11 crore in loan as of the previous fiscal year.

Mithila did not have to provision any amount for possible loss while it was able to write back Rs 1.48 lakh of the amount provisioned for loss in the fourth quarter.

Another encouraging aspect of the Q4 report is that Mithila’s non-performing loan has dropped to 3.41 percent, down from 4.52 percent as of the corresponding quarter.

Mithila’s EPS (annualized) now stands at 11.12, the P/E ratio at 386, and the net worth per share at 128.92.

It may also be noted that Mithila’s scrip had debuted at Nepse on March 28 after the shares floated through the Initial Public Offering (IPO) of 70,725 primary shares in January.

The IPO of Mithila that closed on January 8 was oversubscribed by 76.86 times as the issuance of 70, 725 units of ordinary shares through the IPO that begun on January 5 had drawn Rs 54 crore, 36 lakh and 30 thousand.

The SEBON had approved Mithila’s IPO issuance on December 11.