Financial Statement of RSDC Microfinance for the fourth quarter of 2080-81
Author
NEPSE trading
RSDC Laghubitta Financial Institution Limited (RSDC) has published its unaudited financial report for the fourth quarter of the fiscal year 2080/81. According to the report, the microfinance institution has shown remarkable improvement in its profit.
Financial Performance Summary:
Net Profit: RSDC has earned a net profit of NPR 146.6 million in the fiscal year 2081, which is a 36.47% increase compared to the same period of the previous fiscal year.
Net Interest Income: Net interest income stood at NPR 244.77 million, a decrease of 15.22% compared to the previous year.
Net Fee and Commission Income: This income decreased by 47.94% to NPR 13.62 million.
Total Operating Income: Total operating income decreased by 17.06% to NPR 260.36 million.
Operating Profit: Operating profit increased by 35.12% to NPR 209.48 million.
Impairment Charges: Impairment charges were reversed from NPR 10.73 million to NPR 0.66 million.
Earnings Per Share (EPS): EPS increased by NPR 3.17 to NPR 15.53.
Distributable Profit: Distributable profit stood at NPR 67.6 million.
Paid-up Capital: Paid-up capital increased by 8.60% to NPR 944.35 million.
Reserve Fund: Reserve fund increased by 15.47% to NPR 163.73 million.
Loan Disbursement: Loan disbursement from borrowings stood at NPR 5.36 billion, while total loans and advances reached NPR 6.27 billion.
Analysis:
The increase in net profit and operating profit can be attributed to the effective management of the institution. The reversal of impairment charges also had a positive impact on profitability. However, the decline in net interest income and net fee and commission income indicates a need for diversification and expansion of income sources.
The growth in paid-up capital and reserve fund reflects the institution's financial stability and long-term security. Improving loan disbursement management is essential to address the reduction in loan disbursement.
Conclusion:
RSDC Laghubitta Financial Institution Limited has shown significant improvement in financial performance over the past fiscal year. The increase in profit, paid-up capital, reserve fund, and operating profit are positive aspects of the institution. However, attention needs to be given to the decline in income sources to ensure continued growth in the coming periods. It is expected that RSDC will further strengthen its financial stability and gain the confidence of investors.
