Kathmandu. Microfinance financial institutions have been aggressive in lending along with deposit collection. According to Nepal Rastra Bank, the total deposits and loans of 70 microfinance institutions operated in the fiscal year 2077/78 have increased by 35.97 percent and loans by 39.14 percent. According to the bank, microfinance institutions have collected deposits worth Rs. 337.62 billion as of July 2012. As of June 2012, it was Rs. 248.31 billion.

Similarly, microfinance institutions have disbursed loans and borrowings of Rs. 365.55 billion as of July 2012/13. 262.72 billion in the corresponding period of the previous year. The loan to deposit ratio of microfinance increased from 105.80 percent to 108.27 percent during the review period. Similarly, non-performing loans of microfinance increased by 87.83 percent compared to the previous year.

According to the bank's report, interest expense decreased by 15.64 percent and interest income increased by 11.05 percent compared to the previous fiscal year. Similarly, operating income increased by 77.41 percent and net profit increased by 146.71 percent.