Kathmandu. The average profit of microfinance institutions has increased by 49 percent in the first six months of the current fiscal year. The average net profit of microfinance institutions increased by 48.97 percent in the first six months of the current fiscal year compared to the same period of the previous fiscal year.

As of mid-January this year, a total of 35 microfinance institutions have earned a net profit of Rs. 3.39 billion. This is an increase of Rs. 1.10 billion over the same period last year. As of mid-January last year, these microfinance institutions had made a net profit of only Rs 2.26 billion.

Most of the microfinance dividends have increased during the review period. Out of 35 microfinance institutions, 27 microfinance institutions have increased their profits compared to last year while 8 have reduced their profits. Six of the profit cutters are listed in Nepse.

Farwad MFI is the biggest earner. The organization has increased its profit by 103.55 percent to Rs. 458 million during the review period. Similarly, NIC Asia, Deprox, Mero Microfinance, National Microfinance, Global IME, Mirmire and First Microfinance have made a profit of over Rs 100 million while the rest have a profit of less than Rs 100 million.

The profit growth rate of MFIs is high in percentage of listed microfinance institutions. The company has managed to increase its profit by 428.26 percent during the review period. Manushi Microfinance, which was at a loss of Rs. 4.6 million last year, 

Similarly, CYC microfinance has the highest profit among the six microfinance institutions not listed in Nepse. Microfinance has earned a profit of Rs. 58.1 million during the review period. And, Dhaulagiri microfinance is the biggest gainer in terms of percentage. Dhaulagiri has increased its profit by 497 percent to Rs 21.5 million as compared to last year.

Of the unlisted microfinance institutions, the profits of two have declined compared to last year. Profit of CYC and Upkaar Microfinance decreased by 60.06 and 52.16 percent respectively compared to the previous year.