Samata Laghubitta expands loans by 72% in the first quarter; Is the rising NPL a warning signal?
November 3, 2019 | Investopaper
Samata Laghubitta has reported a profit of Rs 28 lakh in the first quarter of the fiscal year 2076/77. The microfinance has doubled its net interest income to Rs. 2.34 crores due to the expansion of loans by 72 percent in a year. It has floated the loans of Rs. 142.34 crores, up from Rs. 82.74 crores.
However, with the aggressive growth of loans, the NPL has surged to 2.22 percent. NPL stood at only 0.41 percent in the first quarter of the previous year.
The unaudited first quarter report of Samata Laghubitta is summarized in the table below:
Samata Laghubitta First Quarter Report Summary, 2076/77
| HEADINGS | 1st QTR, 2076/77 | 1st QTR, 2075/76 | PERCENT CHANGE |
| PAID-UP CAPITAL (Rs. In crores) | 6.07 | 3.79 | 60.16 |
| RESERVE (Rs. In crores) | 8.03 | 2.39 | 235.98 |
| BORROWINGS (Rs. In crores) | 80.37 | 47.61 | 68.81 |
| DEPOSITS (Rs. In crores) | 56.07 | 30.73 | 82.46 |
| LOANS (Rs. In crores) | 142.34 | 82.74 | 72.03 |
| NET INTEREST INCOME (Rs. In crores) | 2.34 | 1.17 | 100.00 |
| PROFIT (Rs. In crores) | 0.28 | 0.21 | 33.33 |
| NON PERFORMING LOANS, NPL (%) | 2.22 | 0.41 | 441.46 |
| COST OF FUND (%) | 11.28 | 10.62 | 6.21 |
| EARNINGS PER SHARE, EPS (Rs.) | 18.70 | ||
| NETWORTH PER SHARE (Rs.) | 186.21 | ||
| MARKET PRICE PER SHARE (Rs.) [Ashwin 30, 2076] | 1,117 | ||
| P/E RATIO | 59.73 |
