Reliable Microfinance reports 38% drop in net profit; NPL up to 1.88%

Reliable Microfinance Bittiya Sanstha Limited (RMFL) has registered a net profit drop of 38.19% in the second quarter of the current FY 2073/74. According to the unaudited financial report published by the microfinance today, its net profit has decreased to Rs. 71.98 lakh in second quarter, down from Rs. 99.47 lakh in the corresponding quarter of the previous fiscal year. While its net interest income has risen to Rs 2.58 crore in Q2 as compared to Rs. 1.91 crore in the corresponding quarter last year, its operating expenses and provision for loss has increased. As of Q2, it has a paid up capital of Rs 5.65 crore with a reserve of Rs 1.74 crore. The bank also collected deposits of Rs 11.92 crore whereas borrowed Rs 38.29 crore in Q2. Likewise, it has extended loans and advances of Rs 39.90 crore, whereas in the same period last year, the figure stood at Rs 32.78 crore RMFL’s annualized Earnings per Share (EPS) has decreased to Rs 25.48 per share. It has a net worth of Rs 130.93 and the PE ratio stands at 49.84 times. Its 4^th AGM had endorsed 50% right share and 20% cash dividend for the FY 2072/73. After the issuance of right shares, its paid up capital will rise to Rs 8.47 crore.