Nepal’s forex reserves cross US$3b mark

Nepal's foreign currency reserves rose by 18.5 percent during the first 11 months of the Fiscal Year 2007/08, supported by steady inflow of remittance, and rising flow of donors' aid.

Fresh data from the Nepal Rastra Bank (NRB) shows that Nepal's foreign exchange reserves reached over Rs 206 billion (US$ 3.1 billion) in mid-June 2008. The reserves were Rs 165 billion (US$ 2.54 billion) when the Fiscal Year 2007/08 began in mid-July 2007.

Economists said that the increment in foreign reserve is a stimulating factor for the economy. Rising forex keeps the country at a comfortable trajectory to meet debt-servicing obligations and pay import bills, they said.

They said when the foreign exchange reserves go up, foreign investors' confidence soars up as they sense that the country will not put any obstacle to recover their profit.

The current level of reserves is adequate for financing merchandise imports for 11.1 months and merchandise and service imports of nine months.

Nar Bahadur Thapa, director of NRB said the reserves are on the rise as Nepalis aboard are sending more money back and the country is getting more aid. During that period, influx of remittance went up significantly to touch Rs 125 billion. Of the total reserves, 92.8 percent or US$ 2.8 billion are in convertible currencies -- all units except Indian, and US$ 216 million in Indian rupees.

“It is exciting for the economy. The growth in foreign reserves makes the economy stable even in difficult times,” said Thapa.

He said it would clear the way for liberalization to push up the economy and create more employment opportunities by relaxing the monetary and fiscal policies.

“Foreign investors look for forex reserves and policy hurdles while investing in any country. And, the current reserves are enough to lure them,” he said.

Some argued that because of the rising reserves, Nepal is able to maintain the system of pegging its currency with India even as it is reeling under a severe shortage of Indian currency. The rise in reserves also led to a jump in balance of payment. The country reported a surplus of Rs 24.25 billion in mid-June 2008, up from Rs 6.34 billion in the same period last year.
Source: eKantipur
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Nepal to lobby for duty-free access to US

The government is sending a high-level delegation headed by the Chief Secretary to push for duty-free market access to the United States.

The delegation, which leaves in the third week of August, comprises of the Commerce Secretary, representatives from FNCCI and the Garment Association of Nepal including an official from the Trade and Export Promotion Center. They are scheduled to meet senior US trade officials and members of the US Congress.

“We will first attend a garment fair in Las Vegas on August 16 and 17, then fly to Washington DC for the talks,” said Commerce Secretary Purushottam Ojha. He said that the visit was more exploratory in nature, refusing to divulge details. Other sources told the Post that the visit was aimed at pushing for a duty-free facility for Nepali garments and to ask for major Nepali exports to be included in the list of exports that get the special facility the US had committed at the Hong Kong Ministerial of the World Trade Organization (WTO).

Under the commitment, the US had promised to provide duty-free facility on 97 percent of its total tariff lines to least developed countries. While the three percent tariff lines to be protected will still prevent 300 items from enjoying the facility, Nepal is trying to ensure that products of its export interest are listed in the list of 97 percent items.

Garment manufacturers have been pushing that readymade garments be included in the same list.

However, as such an inclusion would still leave Nepal disadvantaged compared to LDCs doing better in garment trade, officials said their preference was towards seeking the facility under a separate bilateral arrangement.

“We are still holding consultations on whether it'd be appropriate to seek special tariff preferences under a special bilateral arrangement,” said Ojha. “Readymade garment, being our largest exports, is definitely going to feature prominently in the talks. But we will not remain confined to it only,” said he.

Nepal has been seeking duty-free facility for readymade garments in the US, especially after the elimination of the quota system in global apparel trade hit Nepali exports badly. The US is the largest apparel market of the world and absorbs 80 percent of Nepal's garments exports.

Over the last five years, especially after the US extended duty-free facilities to readymade garments of the Caribbean and Sub-Saharan countries in 2002, Nepal's exports have plummeted by 80 percent.

While that has shrunk the industry to about a dozen units, some 80,000 people, half of them women, have lost their jobs, according to the Garment Association Nepal (GAN).

During the course, the industry that attracted an investment of Rs 9 billion from the private sector is estimated to have lost Rs 2 billion from the closures by the end of 2007.
Source: eKantipur
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WEEKLY SHARE UPDATE - Nepse does the yo-yo act

The secondary market reacted sharply this week and lost 19.54 points to 972.47 points from last week’s closing of 991.91 points.

Nepse, in its four-day session this week, wound up in negative territory for the first three days. The market opened in the red on Sunday as it plunged by 6.67 points to 985.24 points. On Monday, it continued its downslide and closed at 973.30 points — a loss by 11.94 points.

Similarly, on Tuesday, it further plunged by 10.52 points to 962.78 points. However, on Wednesday, the last day of trading in the domestic market for this week as Thursday was a public holiday, it bounced back by 9.69 points to close the weekly trading at 972.47 points.

Though the contribution of A-category companies increased this week to 68.41 per cent, the sensitive index — a barometer of A-category companies — dipped by 8.43 points to 253.75 points from last week’s closing of 262.18 points.

Except development bank and insurance groups, all other groups wound up in negative territory this week. The development group gained 23.56 points to close at 1347.22 points while insurance group gained 5.37 points to 828.58 points from last week’s closing of 823.21 points.

Nepal Credit and Commerce Bank (Rs 51.68 million), Bank of Kathmandu (Rs 32.77 million), Kist Merchant Bank and Finance (Rs 32.70 million), Nepal Investment Bank (Rs 27.58 million) and Standard Chartered Bank Nepal Ltd (Rs 26.16 million) were the top gainers in terms of mone tary value this week. Nepal Credit and Commerce Bank topped in terms of numbers of share units (1,11,000) of its shares traded and the number of transactions, with 255 in the kitty.

Altogether 75 companies of the total listed companies saw their shares traded at the sole secondary market of the country this week. Nepse listed 60,00,000-unit rights shares of Kist Merchant Bank and Finance. But this week too, Nepse did not see any transaction of government and institutional bonds.
Source: THT
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NEA staff open Jyoti Development Bank

Jyoti Development Bank Ltd has opened in the capital with involvement of employees of the Nepal Electricity Authority (NEA). The bank has a paid up capital of Rs 259 million. According to a press statement issued on Thursday, the main objective of the bank is to collect money scattered across the country to invest in different projects which are beneficial to the people. The bank has set a target of investing in small and medium hydropower projects, physical infrastructures, and small and medium enterprises in addition to providing banking services to small consumers.
Source: eKantipur
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Laxmi Bank: Right Share Certificate Distribution

Laxmi Bank Ltd. is distributing its right share certificate to the shareholders from 25th July, 2008 (2065 Shrawan 10).
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Nepal Telecom: Share Certificate Distribution

Nepal Telecom is distributing the share certificates from 31st July, 2008 (2065 Shrawan 16).
Following items should be brought to get the certificate:

1. Original Bill/Voucher obtained during the form submission

2. Photocopy of Shareholder's Citizenship Certificate

3. Transfer of Rights (Manjurinama), Photocopy of Shareholder's Citizenship Certificate and the identity of the person who wants to get the certificate on behalf of the original person.

The share certificates will be distributed from following outlets from the following dates:


Place of Form Submission: Global Bank Ltd. Kantipath, Kathmandu
Place to distribute Certificate: Citizen Investment Trust (Nagarik Lagani Kosh), Putalisadak
Distribution starts from: 2065/04/16


Place of Form Submission: Global Bank Ltd. Birgunj Branch
Place to distribute Certificate: Global Bank Ltd. Birgunj Branch
Distribution starts from: 2065/04/19


Place of Form Submission: Global Bank Ltd. Baglung Branch
Place to distribute Certificate: Global Bank Ltd. Baglung Branch
Distribution starts from: 2065/04/21


Place of Form Submission: Gorkha Development Bank Ltd Putalisadak, Kathmandu
Place to distribute Certificate: Gorkha Development Bank Ltd Putalisadak, Kathmandu
Distribution starts from: 2065/04/16


Place of Form Submission: Nepal Share Markets, Putalisadak, Kathmandu
Place to distribute Certificate: Nepal Share Markets, Putalisadak, Kathmandu
Distribution starts from: 2065/04/16


Place of Form Submission: NIDC Capital Markets, Kamalpokhari, Kathmandu
Place to distribute Certificate: NIDC Capital Markets, Kamalpokhari, Kathmandu
Distribution starts from: 2065/04/19


Place of Form Submission: Central Finance Ltd. Kupandol, Lalitpur
Place to distribute Certificate: Central Finance Ltd. Kupandol, Lalitpur
Distribution starts from: 2065/04/19


Place of Form Submission: Sagarmatha Merchant Banking & Fin Ltd, Manbhaawn, Lalitpur
Place to distribute Certificate: Sagarmatha Merchant Banking & Fin Ltd, Manbhaawn, Lalitpur
Distribution starts from: 2065/04/20


Place of Form Submission: Premier Finance Co. Ltd, Manbhawan, Lalitpur
Place to distribute Certificate: Premier Finance Co. Ltd, Manbhawan, Lalitpur
Distribution starts from: 2065/04/20


Place of Form Submission: ICFC Bittiya Sanstha, Bhatbhateni, Kathmandu
Place to distribute Certificate: ICFC Bittiya Sanstha, Bhatbhateni, Kathmandu
Distribution starts from: 2065/04/20


Place of Form Submission: KIST Merchant Banking & Finance Ltd, Anamnagar, Kathmandu
Place to distribute Certificate: KIST Merchant Banking & Finance Ltd, Anamnagar, Kathmandu
Distribution starts from: 2065/04/19


Place of Form Submission: Nepal Housing & Merchant Finance Ltd, Dillibazar, Kathmandu
Place to distribute Certificate: Nepal Housing & Merchant Finance Ltd, Dillibazar, Kathmandu
Distribution starts from: 2065/04/19


Place of Form Submission: Nepal Housing & Merchant Finance Ltd, Biratnagar Branch
Place to distribute Certificate: Nepal Housing & Merchant Finance Ltd, Biratnagar Branch
Distribution starts from: 2065/04/23


Place of Form Submission: Laxmi Bank Ltd, Biratnagar Branch, Janakpur Branch, Birgunj Branch, Narayanghat Branch, Pokhara Branch and Pokhara Industrial Zone Branch
Place to distribute Certificate: Concerned Branches
Distribution starts from: 2065/04/23


Place of Form Submission: Birgunj Finance Ltd, Adarshanagar, Birgunj
Place to distribute Certificate: Birgunj Finance Ltd, Adarshanagar, Birgunj
Distribution starts from: 2065/04/23


Place of Form Submission: Butwal Finance Ltd, Butwal Rupandehi
Place to distribute Certificate: Butwal Finance Ltd, Butwal Rupandehi
Distribution starts from: 2065/04/23


Place of Form Submission: People's Finance Ltd, Tripureshwor, Kathmandu
Place to distribute Certificate: People's Finance Ltd, Tripureshwor, Kathmandu
Distribution starts from: 2065/04/19


Place of Form Submission: Royal Merchant Banking and Finance Ltd, Durbarmarg, Kathmandu
Place to distribute Certificate: Royal Merchant Banking and Finance Ltd, Durbarmarg, Kathmandu
Distribution starts from: 2065/04/19


Place of Form Submission: Lumbini Bank Ltd, Biratnagar Branch, Hetauda Branch, Narayangad Branch, Butwal Branch
Concerned Branches
Distribution starts from: 2065/04/23


Place of Form Submission: Bhagarwa Bikas Bank, Nepalgunj, Banke
Place to distribute Certificate: Bhagarwa Bikas Bank, Nepalgunj, Banke
Distribution starts from: 2065/04/23


Place of Form Submission: Malika Bikas Bank, Dhangadi
Place to distribute Certificate: Malika Bikas Bank, Dhangadi
Distribution starts from: 2065/04/23


Place of Form Submission: Miteri Bikash Bak, Dharan
Place to distribute Certificate: Miteri Bikash Bak, Dharan
Distribution starts from: 2065/04/23


Place of Form Submission: Kabeli Bikash Bank, Dhankuta
Place to distribute Certificate: Kabeli Bikash Bank, Dhankuta
Distribution starts from: 2065/04/23


Place of Form Submission: Prabhu Finance Ltd, Kantipath
Place to distribute Certificate: Prabhu Finance Ltd, Kantipath
Distribution starts from: 2065/04/23


Place of Form Submission: Shree Investment Finance Ltd, Dillibazar
Place to distribute Certificate: Shree Investment Finance Ltd, Dillibazar
Distribution starts from: 2065/04/19


Place of Form Submission: Reliable Investment Bittiya Sanstha Ltd, Sundhara
Place to distribute Certificate: Reliable Investment Bittiya Sanstha Ltd, Sundhara
Distribution starts from: 2065/04/19


Place of Form Submission: Prime Commercial Bank Ltd, New Road, Kathmandu
Place to distribute Certificate: Citizen Investment Trust (Nagarik Lagani Kosh), Putalisadak
Distribution starts from: 2065/04/19


Place of Form Submission: Laxmi Bank Ltd, Hattisar, Kathmandu and Citizen Investment Trust (Nagarik Lagani Kosh), Putalisadak
Place to distribute Certificate: Citizen Investment Trust (Nagarik Lagani Kosh), Putalisadak
Distribution starts from: 2065/04/20


Place of Form Submission: Lumbini Bank Ltd, Durbarmarg, Kathmandu
Place to distribute Certificate: Lumbini Bank Ltd, Durbarmarg, Kathmandu
Distribution starts from: 2065/04/19


Place of Form Submission: Nepal Credit and Commerce Bank, Cabahil
Place to distribute Certificate: Nepal Credit and Commerce Bank, Cabahil
Distribution starts from: 2065/04/19


Place of Form Submission: Nepal Credit and Commerce Bank, Birtamod, Biratnagar, Narayanghad, Chitwan, Barahbise, Mahendranagar
Place to distribute Certificate: Concerned Branches
Distribution starts from: 2065/04/23

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Shree Investment. Finance earns profit

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Laxmi Bank earns profit

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Nepal Bangladesh Bank earns profit

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Nava Durga Finance earns profit

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Annapurna Finance earns profit

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Kumari Bank earns profit

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ICFC Bittiya Sanstha earns profit

ICFC Bittiya Sanstha Ltd. has recorded Rs. 33.369 million profit for the 4th quarter of fiscal year 2064/65.
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Gurkha Development Bank's Right Share Allotment

Gurkha Development Bank Ltd. has allotted its right share issued on 26th May, 2008 (2065 Jestha 13).
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Capital Merchant Banking & Finance earns profit

Capital Merchant Banking & Finance Ltd. has posted Rs. 61.828 million profit for the 4th quarter of fiscal year 2064/65.
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Nepal Investment Bank earns profit

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Inflation enters double digit zone

Inflation based on consumer price index (CPI) stood at 11 percent in mid-June 2008, creating deeper holes in pockets of households with fixed and moderate incomes. The inflation was just 4.5 percent in the same time a year ago.

Still, the wholesale price index (WPI) jumped to 12.9 percent in mid-June 2008, while it was 5.6 percent a year ago, the Nepal Rastra Bank (NRB) said, releasing the data of the first 11 months of the 2007/08 fiscal year that ended last week.

On the fiscal front, the government experienced a budget deficit of Rs 9.30 billion in the 11 month period, up from Rs 6.93 billion in the corresponding period in 2006/07.

The central bank said higher government spending had widened the deficit. Government expenditures, on a cash basis, increased by 19.2 percent to Rs 117.35 billion due to expenses on peace related activities and the Constituent Assembly elections. During the period, recurrent expenditures rose by 19.1 percent to Rs 73 billion compared to an increase of 15.4 percent in the corresponding period in 2006/07.

Likewise, capital expenses went up by 35.8 percent to Rs 28.2 billion, as the government shelled out more money on public enterprises. It invested Rs 8.85 billion in these institutions, which included a Rs 5.60 billion loan to cash-strapped Nepal Oil Corporation (NOC).

The central bank said that disbursement of funds to local authorities for rural infrastructure development activities like expansion of transformer lines, small hydroelectricity projects, and alternative energy development contributed to an increase in capital expenditures.

Driven by rising imports fuelled by increase in remittance inflow, the government collected 25.5 percent more revenue in the period. It said Rs 90.17 billion was collected as revenue in the first 11 months of the 2007/08 fiscal year.

Of the total revenue, collection of value added tax (VAT) grew by 18.8 percent to Rs 28.7 billion. Customs revenue rose by 21.2 percent to Rs 18 billion. Similarly, the country collected Rs 14.54 billion as income tax, a 29.8 percent rise.

On the trading front, the picture continued to remain gloomy. Exports rose by just 0.4 percent. The country is fast losing its market in its giant southern neighbour. Total exports to India, a major importer of Nepali goods, went down by 8.1 percent as vegetable ghee, textiles, chemicals, rosin and readymade garments were getting replaced in the Indian market.

Total imports soared by 16.5 percent, as people consumed more on the strength of rising remittance inflow.

Foreign exchange reserves went up by 25 percent to touch Rs 206.47 billion. The current level of reserves is adequate for financing merchandise imports for 11.1 months and merchandise and service imports of nine months.

On the balance of payment, the country recorded a surplus of Rs 24.25 billion, as earnings from Nepalis working abroad, and foreign tourists went up. It had a surplus of Rs 6.34 billion in the same period in the 11 months of the 2006/07 fiscal year.
Source: eKantipur
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Stagflation, but budget deficit up

Though, the government seems to have been able to check inflation, it was unable to stop the rising budget deficit.

The year-on-year consumer inflation rose to 11 per cent in mid-June 2008, from 4.5 per cent a year ago. Inflation was driven by a significant rise in the price of food and beverage group (13 per cent) as well as non-food and service group (nine per cent) in the review period. The price rise of food and beverages and non-food and service group was 5.8 per cent and 3.1 per cent, respectively, a year ago.

However, the budget deficit swelled to Rs 9.30 billion in the first 11 months of the fiscal year 2007-08. The deficit was Rs 6.93 billion in the corresponding period the last fiscal year. The higher growth of government expenditure relative to resource mobilization accounted for such a budget deficit in the review period, states the current macroeconomic situation report, based on the first 11 months' data of the fiscal year 2007-08. The domestic financing of the budget deficit through the issuance of securities (excluding overdraft) amounted to Rs 13.33 billion in the review period.

According to the Nepal Rastra bank (NRB) report, the government cash balance with NRB amounted to Rs 6.65 billion as in mid-June 2008. Including a cash balance of Rs 3.12 billion for the previous year, the cumulative cash balance of the government reached Rs 9.77 billion in mid-June 2008.

However, the net domestic borrowing of the government remained at a negative of Rs 633.6 million on account of the repayment of Rs 7.31 billion domestic debt and cash balances with NRB in the review period. The outstanding domestic debt (including cash balance with NRB) of the government stood at Rs 95.55 billion in mid-June 2008. Such outstanding debt was Rs 96.18 billion in mid-July 2007.

In the first 11months of 2007-08, revenue mobilization also soared by 25.5 per cent — amounting to Rs 90.17 billion compared to an increase of 20.8 per cent in the corresponding period of last fiscal year. Such an impressive growth of revenue was on account of substantial increase in the import of merchandise goods and resulting increase in customs duties, VAT revenue and excise duties, increase in income tax and increase in non-tax revenue.

"Of the total revenue mobilization, VAT revenue grew by 18.8 per cent to Rs 28.7 billion in mid-June 2008," the central bank's report states. The growth in VAT revenue was on account of growing imports and consumption induced by the rise in remittances and reforms in VAT administration such as establishment of Large Taxpayers' Unit, strengthening of the billing system and non-filers' management. In the review period, customs revenue rose by 21.2 per cent to Rs 18 billion compared to an increase of 11.4 per cent in the same period the last fiscal year. Similarly, income tax revenue increased by 29.8 per cent to Rs 14.54 billion. The evolution of corporate culture on account of growth in banks and financial institutions contributed to such high income tax collection. Last year, such revenue had risen by 31.4 per cent. In the review period, non-tax revenue grew by 41.7 per cent to Rs 15.55 billion compared to an increase of 19.7 per cent in the same period of the preceding year.

Such increase in non-tax revenue was on account of increase in dividend paid by some public enterprises including NRB as well as the amount received by the government in the form of principal repayment from Nepal Telecom, Nepal Electricity Authority and Civil Aviation Authority.
Source: THT
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Lumbini Bank earns profit

Lumbini Bank Ltd. has posted Rs. 328.713 million net profit for the 4th quarter of fiscal year 2064/65 which is around 71% more than the corresponding previous quarter.
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Standard Finance earns profit

Standard Finance Ltd. has posted Rs. 34.069 million net profit for the 4th quarter of fiscal year 2064/65 which is 56% more than the corresponding previous quarter.
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Kuber Merchant Bittiya Sanstha earns profit

Kuber Merchant Bittiya Sanstha Ltd. has posted Rs. 5.133 million net profit for the 4th quarter of fiscal year 2064/65.
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Public-private partnership proposed for NAC

The Nepal Airlines Corporation (NAC) Tuesday proposed to sell its shares to private parties under a public-private partnership (PPP) system in a bid to avoid further distress to the national flag carrier.

The meeting of the board of directors took the decision and is forwarding it to the Ministry of Culture, Tourism and Civil Aviation soon for approval, said a board director who attended the meeting.

NAC would need a green signal from the cabinet to convert the institution into a company from a corporation and induct the private parties under PPP.

“To clear the way for PPP, we also decided to conduct a valuation,” the director said. “Even after becoming a company, the airline will still hold the status of the national flag carrier.”

The government, in last year’s budget speech, had also announced to run NAC under the concept of PPP.

After the corporation performed badly, successive governments have said they would convert it into PPP to inject new life into it. But, the plans have remained largely unimplemented. This is the first time that the NAC board formally decided in favor of a PPP.

Due to the management’s negligence and alleged ‘scouting for commission’, it failed to maintain the scheduled operations of its two international aircrafts. It relied on a single Boeing aircraft for a year for all international flights as the other aircraft remained grounded due to damage to its engine.

The management did not repair a spare engine that it owned and left it lying idle in Hong Kong for years, inviting the trouble. As a result, the airline has been losing credibility fast as it has been repeatedly been failing to maintain its flight schedules.

The director said the ministry must immediately initiate efforts to materialize the concept if it wishes to save the corporation from bleeding further.

Analysts said the best way out of the current mess would be to scout a strong international airline as a strategic partner as the Sri Lankan Airlines did with the Emirates Airways.
Source: eKantipur
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Global ATM in Pokhara

Global Bank Ltd has started its ATM services in Pokhara and News Road, Kathmandu branch from Tuesday. “It is planning to install 11 ATMs soon,” states a press release. Global Bank has recently floated 300,0000-unit shares worth Rs 300 million shares for the public. The bank also has also established seven branches within a year of its operation, says the press release is sued here.
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Kist lists rights shares

Kist Merchant banking and Finance Ltd (KMBF Ltd) has listed its 60,00,000-unit rights shares in the secondary market. "It has also decided to give 1:1.5 rights shares to increase its paid up capital to Rs 2000 million," states a press release. KMBF Ltd has appointed ACE Development Bank as sales and issue manager.
Source: THT
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International Finance Corporation to finance 25 pc Arun-III, Upper Karnali investment

International Finance Corporation (IFC), a member of the World Bank group, has announced it will finance 25 percent of the total investment for 402 megawatt (MW) Arun-III and 300 MW Upper Karnali hydroelectric projects.

IFC took the decision to finance the two big hydroelectric projects at the request of Indian private companies GMR Energy Ltd and Sutlej Jal Vidyut Nigam (SJVN), Anita George, Director, Infrastructure of IFC told journalists.

George arrived in Kathmandu to take part in a workshop on "Hydropower Project Financing" jointly organized by Independent Power Producers' Association Nepal (IPPAN), IFC, Nepal Hydropower Association (NHA) and Nepal Bankers' Association (NBA) in the capital on Monday.

The government of Nepal awarded the 300 MW Upper Karnali to GMR last January and the 402-MW Arun-III project to Sutlej in March this year. "IFC will finance 25 percent of the total investment of both projects," George said.

IFC has already invested 10 percent of the total investment in Khimti and Bhotekoshi hydroelectric projects.

She also said IFC is going to invest US$ 38 million in infrastructure sector. Eighty percent of that will be invested in hydro projects, she added.

George suggested that Nepal should give priority to small and medium sized projects. She informed that IFC would also prefer to finance such projects. "We are looking for medium and small-sized projects. But, we will finance both large as well as small projects," she said.

She was of the view that Nepal should adopt public-private partnership model for hydroelectric and other infrastructure development. "Around $10 billion is needed for the 10,800MW Karnali Chisapani Multipurpose Project. Public private partnership concept is essential for such projects," she said.

"Hydropower will give Nepal a big say in regional cooperation," she added.

Addressing the program, Minister for Water Resources Gyanendra Bahadur Karki expressed commitment to crafting a modern Nepal by fulfilling energy needs through rapid development of hydropower sector.

Also, Dr Sandip Shah of IPPAN, Balaram Pradhan of NHA, Radhesh Pant of NBA, Sher Singh Bhat of Nepal Electricity Authority, among others, presented their papers at the workshop.

The conference was also attended by AES, which is one of the world's largest global power companies, that generated approximately $13.6 billion revenues in 2007. Sanjeev Aggrawal of AES also presented a paper.

A large number of policy makers, power producers and bankers from in and outside the country participated in the program.
Source: eKantipur
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Om Finance earns profit

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Ace Development Bank earns profit

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Shikhar Insurance: Dividend Distribution

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Gandaki Development Bank earns profit

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Bank of Asia Nepal: Special General Meeting

Bank of Asia Nepal Ltd. has announced its special general meeting to be held on 27th July, 2008 (2065 Shrawan 12).
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NIC carves niche as innovator

Nepal Industrial and Commercial (NIC) Bank today completed a decade of operations. Beginning from Biratnagar, NIC Bank has spread throughout the country with 16 branches and a close to 50,000 customer base. “The bank has made its mark as an innovator in the banking sector,” says Sashin Joshi, NIC chief executive officer.

NIC was Nepal’s first commercial bank to receive ISO 9001: 2000 standard certification for Quality Management System. It was also the first bank in the country to receive a line of credit from International Finance Corporation (IFC), World Bank Group, under its Global Trade Finance Programme.

“NIC Bank was the first bank to import pure gold and silver from the international market,” adds Joshi. It was awarded the most prestigious international award in the banking industry — Bank of the year 2007 — by The Banker, Financial Times, London.

“Over the next decade, NIC Bank will endeavour to establish itself as a leader in SME Finance and for this it recently signed a Memorandum of Understanding (MoU) with IFC, World Bank Group, for a co-operation agreement. On the occasion of its 10th anniversary, NIC Bank is organising various events throughout the year to commemorate the occasion.

NIC Bank has also promoted a charitable organisation — NIC Foundation — that is supported by a half per cent donation from the bank’s profit.

Meanwhile, NIC Bank opened its 16th branch in Battisputali, Kathmandu. “It’s the fifth branch in the valley,” states a press release.
Source: THT
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Notice to all investors and brokers

Nepal Stock Exchange (NEPSE) has made an appeal to all the investors and brokers to take an account of their respective trades. All Investors are requested to get the Contract Number & Contract Date from their respective brokers after their trade is done and the brokers are informed to provide the same to their respective clients after their order is executed.
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Paschimanchal Development. Bank earns profit

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Yeti Finance earns profit

Yeti Finance Co. Ltd has posted Rs. 8.019 million profit for the 4th quarter of fiscal year 2007/2008 which is around 36% more than the corresponding previous years¿ record.
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Nepal Industrial and Commercial Bank's Right Share Certificate Distribution

Nepal Industrial and Commercial Bank Ltd. is distributing its right share certificate to the shareholders upto 27th Feb, 2008 (2064 Falgun 15) from 23rd July, 2008(2065 Shrawan 8).
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Gurkha Development Bank's branch in Pokhara

Gurkha Development Bank (Nepal) Ltd (GDBNL) has opened its second branch in New Road of Pokhara on Sunday. According to a press release, D B Bamjan, president of the bank, inaugurated the branch. The branch collected Rs 40 million of deposit on the very first day of operations, says the statement, which adds that the development bank operates with authorized capital of Rs 2 billion and paid up capital each of Rs 480 million.
Source: eKantipur
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Himalyan Bank Ltd signs MOU with Laxmi Bank

In view of exchanging and providing state-of-the-art banking services to the customers and exploring possibilities of new banking business for mutual benefit, Himalayan Bank Limited and Laxmi Bank Limited, the two reputed private sector banks of Nepal have signed a memorandum of understanding (MoU) today amidst a function in Kathmandu. Mr. Ashoke SJB Rana, Chief Executive Officer of Himalayan Bank Limited, and Mr. Suman Joshi, Chief Executive Officer of Laxmi Bank Limited were the signatories of the MoU. The agreement shall come into effect from July 20, 2008.

In order to provide banking service to the customers of both the banks, the services of all branches of the two banks will be utilized. In addition to this, customers of both banks will be able to transfer their money from any branch to other branches of both banks.

According to the MoU, customers of both banks will benefit by having access to withdraw their money from any branch of the two banks.

In order to support each other in physical cash management in the Banks' branches within the same territory, each bank's branch will work on obtaining excess liquid fund of another bank to manage its cash position.
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Fewa Finance earns profit

Fewa Finance Co. Ltd. has posted Rs. 24.103 million profit for the 4th quarter of fiscal year 2064/65.
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Maha Laxmi Finance earns profit

Maha Laxmi Finance Ltd. posted Rs. 20.001 million profit for the 4th quarter of fiscal year 2064/65.
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IME Financial Institution earns profit

IME Financial Institution Ltd. has recorded Rs. 28.685 million profit which is 3 times more than the corresponding previous quarter report.
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Nepal Electricity Authority's Bond Enlisted

Nepal Electricity Authority's, "Electricity Bond-2069" has been enlisted in the Nepal Stock Exchange.
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Nepal SBI Bank Ltd's counter in Thamel

Nepal SBI Bank Ltd. has opened its new extension counter at Indian Gorkha Army Residence area in Thamel. For the purpose of serving the Indian Gorkha armies, the counter is extended. It is the 21st service centre of the bank.
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WEEKLY SHARE UPDATE - Nepse set to cross 1000-point mark

Nepse jumped up a whopping 42.39 points to close at 991.91 from last week’s closing of 949.52 points. After the last two weeks’ slow performance the secondary market has geared up and looks to cross the 1000-point mark again, especially as the buying pressure is increasing in the market.

Though, the market opened in the green zone, contribution of companies trading under A-category decreased to 33.82 per cent.

The sensitive index - a barometer of A-category companies - however gained 10.90 points to 262.18 points from last week’s closing of 251.33 points.

All the five days of this week registered gains. On Sunday, it flared by 3.94 points to 953.46 points from last week’s closing of 949.52 points. On Monday, it surged by 5.80 points to 959.26 points. On Tuesday, it went up by 14.10 points to 963.36 points.

Similarly, on Wednesday, it continued to post a growth by 18.76 points to 982.12 points and on Thursday it flared by 8.79 points to close the weekly market at 991.91 points.

In terms of monetary value, Nepal Credit and Commerce Bank (Rs 262.44 million), Nepal Bangladesh Bank (Rs 197.14 million), Bank of Kathmandu (Rs 52.65 million), National Hydropower Company (Rs 45.50 million) and Nepal Investment Bank (Rs 25.08 million) are this week’s top five gainers.

In terms of numbers of share units traded, Nepal Credit and Commerce Bank topped the chart with 5,79,000 units of its shares traded this week while Biratlaxmi Bikas Bank topped the chart in terms of number of transactions, with 173.

This week, shares of 73 companies were traded against last week’s 77 companies.

This week Nepse saw transac tions of Rs 878.99 million against last week’s Rs 408.87 million. Ex cept hotel, trading and manufac turing groups, all other groups gained this week.

Nepse listed 15,000,00 unit NEA Power Bond-2069 worth Rs 1,000 face value that attracts 7.75 per cent interest per annum.
Source: THT
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Siddhartha Bank Ltd profits

Siddhartha Bank Ltd (SBL) this fiscal year posted Rs 286 million operating profit that is a rise by 64 per cent compared to the last fiscal year. Total deposit has increased by 50 per cent to Rs 10,253 million and total loans and advances have also increased by 50 per cent as of the end of Asad, states the release. Surender Bhandari has joined the bank as its CEO.
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Gold hits roof, comes down

The precious yellow metal toppled after popping the price chart.

On Wednesday, the price of gold touched a historic high of 21,820 per 10 gram — Rs 25,450 per tola (11.664 gram) — in the domestic market. But, it climbed down on Thursday by Rs 115 to Rs 21,605.

It further plunged on Friday, the last trading day of the week in the domestic market to Rs 21,435 per 10 gram.

Fuelled by the global market the domestic market also remained unstable this entire week. However, it closed Rs 345 higher to Rs 21,435 from last week’s closing price of Rs 21,090.

“The sign of increasing output of oil has stabilised the gold market,” states Nepal Gold and Silver Dealers’ Association (NEGOSIDA). “Similarly, global share markets and American currency also showed a sign of improvement, stabilising the gold price,” it adds.

Gold opened at Rs 21,350 on Sunday, a rise by Rs 260 from last week’s closing and remained constant on Monday. On Tuesday, it flared by Rs 300 to Rs 21,650 and on Wednesday, it posted a historic high of Rs 21,820. But, the downswing began Thursday.

In the world market, gold touched $975 per ounce before cooling down. Silver upped seven rupees to Rs 391 from last week’s closing of Rs 384 per 10 gram.
Source: THT
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