RSDC Laghubitta reports impressive profit rise of 87% in Q3; IPO of 4 lakh unit shares in pipeline

Butwal based RSDC Laghubitta Bikas Bank (RSDC) has posted an outstanding net profit rise of 87% in the third quarter of current fiscal year 2072/73. The net profit of the company rose to Rs 1.05 crore in Q3 up from Rs 56.54 lakh in the corresponding quarter of the previous fiscal year 2071/72. Publishing the unaudited financial report for the third quarter today, the microfinance institution has stated that its operating profit has surged to Rs 1.66 crore in Q3, up from Rs 88.85 lakh in the corresponding quarter of the last fiscal year. Its net interest income has risen to Rs 2.03 crore up from Rs 1.37 crore in the corresponding quarter. The micro finance institution’s borrowing surges to Rs 65.96 crore in Q3 up from Rs 43.55 crore in the same quarter of previous year. Likewise, it has extended loans and advances of Rs 65.39 crore whereas in the same period last year the figure stood at Rs 44.84 crore. RSDC’s has a paid up capital of Rs 6 crore and has Rs 1.99 crore in reserve and surplus. Its non-performing loan is at 0.07 percent. RSDC Laghubitta is also coming with its IPO of 4, 00,000 unit shares. The issue manager for the IPO is NIBL Capital. ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below average fundamentals to the proposed initial public offering (IPO) of RSDC Laghubitta. Damodar Joshi, CEO of RSDC Laghubitta said, ‘The IPO is on the review process in SEBON. It has been 15 days that we have applied in SEBON. We will be floating the IPO after we get approval from Sebon.” It has authorized capital of Rs 20 crore, issued capital of Rs 10 crore and paid up capital of Rs 6 crore. After an IPO of Rs 4 crore, paid up capital of RSDC will reach Rs 10 crore.