Srijana Finance net loss amounts to Rs 2.01 crore after provision for possible losses hikes to Rs 3.74 crore

Srijana Finance Limited (SFFIL) has shown decrease in net profit by 236.97 percent in the first quarter (Q1) of the fiscal year 2074/75. As per the unaudited report for the first quarter published today, the finance stated net loss of Rs 2.01 crore in the first quarter of fiscal year 2074/75 from net profit of Rs 1.47 crore reported in the same quarter of the fiscal year 2073/74. The finance has collected Rs 3.79 arba in deposits and disbursed Rs 2.89 arba in loans in Q1 as compared to Rs 2.43 arba in deposits and Rs 2.14 arba in loans in the corresponding quarter last year. Its current paid up capital stands at Rs 30.24 crore with reserve of Rs 16.16 crore. Its non-performing loan (NPL) stands at 1.71% and provision for possible losses amounts to Rs 3.74 crore. The company has attributed this loss to increase in provision for loss as a result of the recent Terai floods, elections and festivals. Its operating expenses has also increased massively due to expansion of 12 new branches. As per the finance company, its balance sheet will be in profit from the ongoing 2nd quarter itself. SFFIL has proposed 32.50% bonus share to its shareholders from the profits it earned in FY 2073/74. After the issuance of the bonus share, its paid up capital will reach Rs 40.06 crore, thereby maintaining the paid up capital requirement set by Nepal Rastra Bank for 1-3 district level finance companies. Its annualized Earning per Share (EPS) is negative at Rs 26.66 and net worth per share is at Rs 153.44.