Allegations of ‘fraudulent’ transaction in promoters’ shares of Lumbini Bank has exposed the not-so-pretty face of the stock market that has been growing steadily over the recent past days.
A group of investors with their brokers today went to the office of Nepal Finance Company (Nefisco) to ask its chief executive officer (CEO) Sudhindra Lal Pradhan either to give them their share certificates that they have bought some six months ago or return their money.
They accused Nefisco of having cheated them by not disclosing the status of the shares that it sold them.
The promoters shares have separate status and they can be bought and sold like ordinary shares also.
“But the pricing mechanism is different,” Anoj Agrawal, broker number 6, who has bought 3500 units of the disputed promoters’ shares of Lumbini Bank Ltd said.
He added that these have to be disclosed before selling. “But Nefisco did not disclosed the status of these shares,” Agrawal said.
Earlier, Nefisco had tried to sell its 1,00,000-unit of promoters’ shares. But it could not sell these as its share certificate was marked promoters.
“Then they split the shares and this time they were successful in selling it at the market price,” Agrawal said adding that due to non-disclosure of the promoters’ share they ‘fraudulently’ sold these like ordinary shares.
However, Nefisco CEO Pradhan countered that Nefisco had not cheated any of the buyers.
“In fact, we came to know after a long time that Lumbini Bank did not transfer the shares into the buyers’ names,” he said.
Pradhan added that when Nefisco inquired of the bank it replied that the name transfers could not be done as the sold shares were promoters’ shares.
“Lumbini Bank has to give in writting that the promoters’ shares are not transferrable,” Pradhan claimed.
He also blamed the brokers for creating the commotion saying that they knew the status of the shares but did not take the investors into confidence.
Agrawal said, “We also had several meetings with the Securities Board of Nepal (Sebon), Nepse, Lumbini Bank, Nefisco that sold the shares and also those investors who bought the shares.” He added that Nepse had clearly told the finance company to return the money to the buyers but it was not showing willingness to do so.
Shovan Dev Pant, chief executive officer of Lumbini Bank Ltd said that Nefisco was required to come according to Nepal Rastra Bank’s (NRB) regulations to sell promoters’ shares.
“As a commercial bank, we can not entertain any request that falls outside the purview of the NRB’s rules and regulations,” he said.
Source: THT
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Saturday, August 2, 2008
Govt rakes in profit of 23 pc in 2007-08 revenue collection
The government collected Rs 107.53 billion as revenue in the fiscal year 2007-08 — a 23 per cent increase in comparison to the fiscal year 200607, according to the Nepal Rastra Bank (NRB).
“Such impressive growth of revenue was on account of substantial increase in import of merchandise goods and resulting increase in customs duties, VAT revenue and excise duties, increase in income tax and non-tax revenue,” states the central bank.
Revenue mobilisation soared by 25.5 per cent amounting to Rs 90.17 billion in the first 11 months of 2007-08, compared to an increase of 20.8 per cent in the corresponding period last fiscal year.
Of the total revenue mobilisation, VAT revenue grew by 18.8 per cent to Rs 28.7 billion in mid-June 2008. 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 previous year. Reforms in customs administration, increase in import of high tax yielding vehicles and spare parts as well as rise in the amount of Indian excise refund contributed to such a high growth of customs revenue.
In the review period, excise revenue increased by 24.6 per cent to Rs 9.41 billion compared to an increase of 35.8 per cent in the same period of the previous year. Reforms in ex cise administration, identification of new excisable goods and increase in imports of high tax yielding vehicles accounted for such high excise revenue in the review period.
Income tax revenue increased by 29.8 per cent to Rs 14.54 billion in the first 11months of 2007-08. The evolution of corporate culture on account of growth in banks and financial institutions contributed to such a high growth of income tax collection. Last year such revenue had risen by 31.4 per cent.
In the review period, nontax 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 the preceding year. The 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 of Nepal.
In the last 11 months of the fiscal year 2007-08, the government received foreign cash grants of Rs 14.68 billion compared to that of Rs 13.38 billion in the corresponding period the previous year.
In the review period, major assistance included support provided by Asian Development Bank (ADB) to Rural Reconstruction and Rehabilitation Sector Development Programme (RRRSDP), Germany for Middle Marsyangdi Hydroelectric Project, World Bank for Poverty Alleviation Fund, Road Sector Development Project, Irrigation and water Resources Management Project and Education For all Projects, the UNICEF for Decentralised Ac tion for Children and Women, Health and Nutrition, and HIV/AIDs programme and Finland for Rural water Supply and Sanitation Project.
Source: THT
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Gold opens sturdily, sighs shut
This week gold opened on Sunday at Rs 20,700 per 10 gram. It had closed at the same price last Friday.
The precious yellow metal remained constant at the start of the week at Rs 20,700 but gained Rs 200 on Tuesday to Rs 20,900. On Wednesday, it lost Rs 125 to Rs 20,575, further went down to Rs 20,405 on Thursday and closed at the same price on Friday.
“Due to stronger dollar and minor fluctuation in oil prices in the global market this week, the local bullion market witnessed marginal fluctuation,” according to Nepal Gold and Silver Dealers’ Association (NEGOSIDA). In the international market also, the gold price came down to $911 per ounce from last week’s $932.
Similarly, silver opened at Rs 386 per 10 gram on Sunday but dipped to Rs 384 on Monday to further gain on Tuesday. On Tuesday,it gained two rupees per 10 gram to Rs 386.
However, the last three days of the week, Wednesday, Thursday and Friday it remained constant at Rs 384.
Source: THT
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Biratlaxmi Development Bank posts profit
Biratlaxmi Development Bank collected deposits worth Rs 331.7 million during fiscal year 2064-065. The collection is a 103 per cent rise from the previous year’s collection. The bank also floated loans worth Rs 286.1 million during the same period. The amount is a rise by 95 per cent from the previous year’s amount. The bank recorded an operational profit of Rs 7.63 million, double the previous year’s profit.
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Citizens’ Bank’s new ATM
Citizens’ Bank International Ltd has started its ATM facility at its Dhambojhi branch in Nepalgunj. The branch opened on March 12. “With SCT networking, customers can withdraw cash without extra charge and SCT cards can be used in its ATM,” states a press release. In the fiscal year 2007-08, the bank collected Rs 6.13 billion deposit and floated Rs 4.79 billion loans. It has earned a profit of Rs 73.3 million, claims the bank.
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IME three years old
IME Financial Institute has completed its third year of establishment and has entered its fourth year. In the fiscal year 2063064, IME collected Rs 1.5 billion deposit and floated loans worth Rs 1.36 million. IME has posted a operating profit of Rs 46 million.
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Nepal Bank Ltd posts profit
Nepal Bank Ltd earned a profit of Rs 830.7 million in the fiscal year 2007-08, which is an increase by 232.27 per cent over the last fiscal year. It posted a net profit of Rs 528.6 million, states a press release. NBL also registered increase in deposits by 7.10 per cent that stands at 39.14 billion. It was successful in reducing the non-performing loans to 8.05 per cent from last fiscal year’s 13.49 per cent.
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Friday, August 1, 2008
Bishal Bazar Co. Ltd's special general meeting postponed
The special general meeting of Bishal Bazar Co. Ltd. has been postponed to 8th August, 2008 (2065 Shrawan 24).
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Bhrikutee Bikas Bank posts profit
Bhrikutee Bikas Bank Ltd. has posted Rs. 15.895 million net profit for the 4th quarter of fiscal year 2064/65 which is 98.75% more than the corresponding previous quarter.
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Paschimanchal Finance Company posts profit
Paschimanchal Finance Co. Ltd. has allotted its right share to the shareholders upto 22nd November, 2007(2064 Mangshir 6).
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Nepal Industrial and Commercial bank’s profit up 57pc
Nepal Industrial and Commercial (NIC) Bank said it recorded a 57 percent rise in net profit in 2007/08. Issuing a statement, the bank said its net profit for the year was Rs 249 million. The bank has attributed the rise in profit to a significant increase in non-interest income and a decline in loan loss provisions. “The bank’s non-performing loans currently stand at 0.9 percent of the total loans,” the statement said. NIC Bank, recipient of the Bank of the Year 2007 award, recently opened a branch at Battisputali, raising its total network of branches to 16 across the country.
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National Finance Ltd posts profit
National Finance Ltd. has posted Rs. 27.126 million net profit for the 4th quarter of fiscal year 2064/65.
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Nepal Bank Limited’s operating profit touches Rs 228m
Nepal Bank Limited (NBL) earned an operating profit of Rs 228.12 million in the last fiscal year, it said in a press statement. In the year before, the bank had posted an operating loss of Rs 36.71 million. The statement noted that the bank recorded a sound growth on deposits and investments during the year. During the year, the bank’s deposits grew by 7.10 percent to touch Rs 41.78 billion. Likewise, its loans went up by about 15 percent to Rs 15.77 billion and investment expanded by 3.5 percent to Rs 16.64 billion. While the bank’s income from interest during the year remained at Rs 1.34 billion, its non-performing assets dropped to 8.05 percent from 13.49 percent of the previous fiscal year. During the year, the bank made cash recovery of Rs 864 million, of which Rs 523 million was the principal sum and Rs 341.90 million interest repayment.
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Bageshwori Development Bank posts profit
Bageshwori Development Bank Ltd. has posted Rs. 6.991 million net profit for the 4th quarter of fiscal year 2064/65 which is 149% more than the corresponding previous quarter.
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Clean Energy Bank opens first branch
Clean Energy Development Bank has opened its first branch at Nepal's eastern city Jhapa and is soon planning to open its second branch at Durbar Marga, Kathmandu soon, it said in a statement Thursday. The bank mobilized deposits worth Rs 1.83 billion by the end of the last fiscal year and incurred a net loss of Rs 13.9 million during the period. The statement further added that the bank was planning to add four more branches during the current fiscal year. Recently the bank offered 960,000 units of shares to the public at a par value of Rs 100 each.
Source: Ekantipur
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Source: Ekantipur
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Thursday, July 31, 2008
FDI commitment rises to 5-year high at Rs 10b
Nepal received the highest foreign direct investment (FDI) commitment of Rs 9.81 billion in the last fiscal year, as a housing boom and newly explored hydro potentials lured overseas investors.
“Last year saw a sound peace dividend in foreign direct investment. We were long due to receive such an encouraging response,” said Tilak Ram Sharma, director general of the Department of Industry (DOI).
Government statistics show that the department approved 212 foreign investment projects during the year with the energy sector leading the list. The total project cost stood at Rs 20.40 billion and total fixed cost at Rs 16.89 billion.
In the previous year, the country had received FDI commitment of Rs 2.88 billion. FDI commitment was Rs 2.76 billion five years ago in Fiscal Year 2003/04. “A good thing, unlike in the past, is that the capital has already started to funnel in for major projects,” Sharma told the Post.
The department's record shows other qualitative difference as well in FDI commitments received during the year.
After a gap of a few years, the agricultural sector received 11 foreign investment projects in 2007/08. The tourism sector lured the maximum number of FDI projects, 67 during the year, whereas the regular topper in attracting FDI, the manufacturing sector, saw 51 FDI projects registered during the year.
The country received Rs 1.59 billion in investment in the housing sector alone.
The sector drew Indian investment of Rs 1.25 billion from six projects. Likewise, it received FDI of Rs 200 million from UK investors, Rs 100 million from the Chinese and Rs 35.40 million from the Spanish parties.
“Investments have come from diverse countries and it has been surprising to us as well,” said an official at the Foreign Investment Division of DoI.
Likewise, the country received FDI commitment worth Rs 1.60 billion in the cement industry. “The Birla Corporation Limited of India is investing Rs 20 million. Arati Cement has also registered a project of Rs 1.58 billion,” said the official.
Hydropower, another promising sector, lured FDI of Rs 2.22 billion, shows the DoI data. Of the major investment in the sector, a South Korean hydropower company committed to invest Rs 1.98 billion to develop a hydel project in Benighat.
West Seti, another much-talked about project, has also been registered receiving the Chinese investment.
Nepal received FDI commitment from investors across 39 countries. As usual, Indian investors topped the list of maximum FDI generator during the year. “We have received investment commitment of Rs 4.55 billion from investors in our Southern neighbor,” said the DoI official.
Likewise, FDI commitment of Rs 2.92 billion was received from South Korean investors. China, with an FDI commitment of Rs 448 million, was the third largest investment generator for Nepal during the year. The United Arab Emirates with an FDI commitment of Rs 403 million generated the fourth largest foreign investment.
Once implemented, the FDI projects registered last year are estimated to create employment for 10,677 people.
Source: eKantipur
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“Last year saw a sound peace dividend in foreign direct investment. We were long due to receive such an encouraging response,” said Tilak Ram Sharma, director general of the Department of Industry (DOI).
Government statistics show that the department approved 212 foreign investment projects during the year with the energy sector leading the list. The total project cost stood at Rs 20.40 billion and total fixed cost at Rs 16.89 billion.
In the previous year, the country had received FDI commitment of Rs 2.88 billion. FDI commitment was Rs 2.76 billion five years ago in Fiscal Year 2003/04. “A good thing, unlike in the past, is that the capital has already started to funnel in for major projects,” Sharma told the Post.
The department's record shows other qualitative difference as well in FDI commitments received during the year.
After a gap of a few years, the agricultural sector received 11 foreign investment projects in 2007/08. The tourism sector lured the maximum number of FDI projects, 67 during the year, whereas the regular topper in attracting FDI, the manufacturing sector, saw 51 FDI projects registered during the year.
The country received Rs 1.59 billion in investment in the housing sector alone.
The sector drew Indian investment of Rs 1.25 billion from six projects. Likewise, it received FDI of Rs 200 million from UK investors, Rs 100 million from the Chinese and Rs 35.40 million from the Spanish parties.
“Investments have come from diverse countries and it has been surprising to us as well,” said an official at the Foreign Investment Division of DoI.
Likewise, the country received FDI commitment worth Rs 1.60 billion in the cement industry. “The Birla Corporation Limited of India is investing Rs 20 million. Arati Cement has also registered a project of Rs 1.58 billion,” said the official.
Hydropower, another promising sector, lured FDI of Rs 2.22 billion, shows the DoI data. Of the major investment in the sector, a South Korean hydropower company committed to invest Rs 1.98 billion to develop a hydel project in Benighat.
West Seti, another much-talked about project, has also been registered receiving the Chinese investment.
Nepal received FDI commitment from investors across 39 countries. As usual, Indian investors topped the list of maximum FDI generator during the year. “We have received investment commitment of Rs 4.55 billion from investors in our Southern neighbor,” said the DoI official.
Likewise, FDI commitment of Rs 2.92 billion was received from South Korean investors. China, with an FDI commitment of Rs 448 million, was the third largest investment generator for Nepal during the year. The United Arab Emirates with an FDI commitment of Rs 403 million generated the fourth largest foreign investment.
Once implemented, the FDI projects registered last year are estimated to create employment for 10,677 people.
Source: eKantipur
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15th SAARC Summit: Summit to focus on development
Finance Minister Dr Ram Saran Mahat on Wednesday said that the 15th South Asian Association for Regional Cooperation (SAARC) Summit would focus on economic agendas to broaden intra-regional economic cooperation.
"Since SAARC's ultimate goal is to transform itself into a regional economic union, it must focus on intra-regional flow of capital and investment, and promotion of free trade by lowering non-tariff barriers," said Dr Mahat, speaking at Reporters Club Nepal before leaving for Colombo, Sri Lanka to attend the meeting of the SAARC Standing Committee.
Talking about the existing energy crisis in the SAARC region, he said that the member states must think more seriously towards tapping the natural resources available in the region.
Water resources available in Nepal, coal in India and gas in Bangladesh could be utilized effectively by developing an intra-regional energy and power transmission grid to reduce the region's huge energy dependency on the countries outside it.
Referring to the SAARC Development Fund (SDF), which the Colombo Summit is set to establish and operate, Dr Mahat said the Summit should try to encourage the bloc's observer members to contribute more in funds to make SDF result-oriented.
He said that the Summit would also discuss on developing a regional strategy for food security and environmental protection. Mahat informed the press that Prime Minister Girija Prasad Koirala is scheduled to hold dialogues with Indian Prime Minister Manmohan Singh on the sidelines of the summit in Colombo.
"I will also talk with Indian officials and request them to waive the existing additional duty imposed on steel for Nepal as soon as possible."
India has imposed 16 percent as export duty on steel for the last three months. While rolling mills operators have argued that the duty goes against the spirit of bilateral trade arrangements, the industry ministry has already requested the Indian government to waive the duty for Nepal.
The duty, meanwhile, has already forced the prices of steel bars to shoot up. Prices of steel rods have more than doubled over the span of a year amid rising prices of raw materials in the international market.
Source: eKantipur
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"Since SAARC's ultimate goal is to transform itself into a regional economic union, it must focus on intra-regional flow of capital and investment, and promotion of free trade by lowering non-tariff barriers," said Dr Mahat, speaking at Reporters Club Nepal before leaving for Colombo, Sri Lanka to attend the meeting of the SAARC Standing Committee.
Talking about the existing energy crisis in the SAARC region, he said that the member states must think more seriously towards tapping the natural resources available in the region.
Water resources available in Nepal, coal in India and gas in Bangladesh could be utilized effectively by developing an intra-regional energy and power transmission grid to reduce the region's huge energy dependency on the countries outside it.
Referring to the SAARC Development Fund (SDF), which the Colombo Summit is set to establish and operate, Dr Mahat said the Summit should try to encourage the bloc's observer members to contribute more in funds to make SDF result-oriented.
He said that the Summit would also discuss on developing a regional strategy for food security and environmental protection. Mahat informed the press that Prime Minister Girija Prasad Koirala is scheduled to hold dialogues with Indian Prime Minister Manmohan Singh on the sidelines of the summit in Colombo.
"I will also talk with Indian officials and request them to waive the existing additional duty imposed on steel for Nepal as soon as possible."
India has imposed 16 percent as export duty on steel for the last three months. While rolling mills operators have argued that the duty goes against the spirit of bilateral trade arrangements, the industry ministry has already requested the Indian government to waive the duty for Nepal.
The duty, meanwhile, has already forced the prices of steel bars to shoot up. Prices of steel rods have more than doubled over the span of a year amid rising prices of raw materials in the international market.
Source: eKantipur
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Everest Bank Ltd posts profit
Everest Bank Ltd. has posted Rs. 450.123 million profit for the 4th quarter of the fiscal year 2064/65 which is 52% more than the corresponding previous quarter.
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Nepal Express Finance Ltd's Right Share Allotment
Nepal Express Finance Ltd. has allotted its right share to the shareholders upto 21st May, 2008 (2065 Jestha 8).
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Machhapuchchhre Bank Ltd.
Machhapuchchhre Bank Ltd. has posted Rs. 127.824 million profit for the 4th quarter of fiscal year 2064/65 which is almost 73% more than the corresponding previous quarter.
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Narayani Finance Ltd posts profit
Narayani Finance Ltd. has posted Rs. 21.310 million profit for the 4th Quarter of fiscal year 2064/65.
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Premier Finance Co. Ltd posts profit
Premier Finance Co. Ltd has posted Rs. 10.394 million net profit for the 4th quarter of fiscal year 2064/65.
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Lumbini Bank Ltd's Right Share Certificate Distribution
Lumbini Bank Ltd. is distributing its right share certificate from 3rd August, 2008 (2065 Shrawan 19) to the shareholders upto 7th January, 2008 (2065 Poush 23).
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Nepal Bank Ltd posts profit
Nepal Bank Ltd. posted Rs. 528.652 million net profit for the 4th quarter of fiscal year 2064/65.
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Himchuli Bikash Bank Ltd'sd Right Share Certificate Distribution
Himchuli Bikash Bank Ltd. is distributing the right share certificate from 31st July, 2008 (2065 Shrawan 16) to the shareholders upto 18th May, 2008 (2065 jestha 5).
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Nepal Finance Ltd posts profit
Nepal Finance Ltd. has posted Rs. 46.917 million net profit for the 4th quarter of fiscal year 2064/65.
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Launching of Gold Exchange Traded Fund (GETF)
In the near future, the Nepalese commodities market will witness the "Paper Gold". An agreement has been inked today between Mr. Siddhant Raj Pandey, Managing Director/CEO of Ace Development Bank Limited (ACE) and Mr. Vijay Satyal, CEO of Commodities & Metal Exchange Nepal Limited (COMEN) today to launch Gold Exchange Traded Fund (GETF). Internationally, GETFs are the most sought after instruments by the gold investors. GETFs are safe, secured and relatively cheaper in comparison to physical gold investment with the same value of holding physical gold. Ace GETFs will be listed in COMEN and traded like Shares and Debentures. It will provide ample liquidity as well as fair price discovery based on the international market price to the domestic gold investors. It is believed that the endeavor initiated by ACE and COMEN will rationalized the domestic bullion market to some extent. Since inception in 1995, ACE has been first in introducing many innovative financial products and services to the Nepali financial market. In the future, ACE is planning to introduce some internationally acclaimed financial instruments best suited for the domestic financial market in association with renowned global brand in the industry.
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Light at end of tunnel at last for NRNs, FIIs
Arrangements will be made to allow Non Resident Nepalis (NRNs) and Foreign Institutional Investors (FIIs) to invest in the secondary securities market, as promised in last year's budget. However, the finance ministry has not yet forwarded any regulation or modality on how to allow NRNs and organised foreign investors to invest in the sole secondary market.
"The draft Act for FIIs is ready but it has reached nowhere due to political instability," said a senior official at the finance ministry, adding that the ministry had also done homework on modalities of how to allow NRNs to invest in the secondary market, Nepal Stock Exchange Ltd (Nepse). "It is not only an economic but a political issue also. Political instability has pushed it back as it has to be passed by the parliament," he added. Experts opine that investment by FIIs and NRNs will fuel the capital market as they will bring more capital to the market that has more than Rs 3 trillion market capitalisation. "It will create institutional investors as well, something that our capital market lacks," they also pointed out.
Chairman of Securities Board of Nepal (Sebon) Dr Chiranjivi Nepal said Sebon had prepared a preliminary draft and submitted it to the finance ministry. "Nepal Rastra Bank (NRB) needs to change some of its regulations," he said adding that the basic infrastructure for NRNs and FIIs to allow invest in the secondary market is paperless trading, i.e. installation of central depository system (CDS). "The private sector is interested in helping Nepse instal CDS. Most probably, the installation of CDS will be mentioned as a priority item in the present budget," the Sebon chief said.
"We have suggested to the government to allow NRNs and FIIs to allow invest in the secondary market," Nepse general manager Rewat Bahadur Karki said adding that physical infrastructure like automation and wide area network (WAN) have been developed for the purpose.
"We need to develop Internet trading for them to invest," he said adding that Nepse was working on client support software and modalities of central depositary system (CDS). "After that, we can invite FIIs and NRNs to invest in the secondary market," he said.
Nepse has also prepared some preliminary modalities of how NRNs and FIIs can invest. These modalities are still under discussion. "According to that, NRNs have to open accounts in commercial banks before investing in the secondary market," he said.
Also, how NRNs and FIIs can take back earnings with them is yet another burning issue that needs tackling. Meanwhile, there is still yet another Act waiting in the wings because it also needs parliament's approval. The Draft Regulation of Mutual Funds is in the pipeline. According to the draft, Mutual Funds can also invest 50 per cent of their capital in foreign countries.
"It is delayed due to the absence of a Trustee Act that in its own turn needs the parliament's approval," said the ministry source.
By Kuber Chalise (Source: THT)
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"The draft Act for FIIs is ready but it has reached nowhere due to political instability," said a senior official at the finance ministry, adding that the ministry had also done homework on modalities of how to allow NRNs to invest in the secondary market, Nepal Stock Exchange Ltd (Nepse). "It is not only an economic but a political issue also. Political instability has pushed it back as it has to be passed by the parliament," he added. Experts opine that investment by FIIs and NRNs will fuel the capital market as they will bring more capital to the market that has more than Rs 3 trillion market capitalisation. "It will create institutional investors as well, something that our capital market lacks," they also pointed out.
Chairman of Securities Board of Nepal (Sebon) Dr Chiranjivi Nepal said Sebon had prepared a preliminary draft and submitted it to the finance ministry. "Nepal Rastra Bank (NRB) needs to change some of its regulations," he said adding that the basic infrastructure for NRNs and FIIs to allow invest in the secondary market is paperless trading, i.e. installation of central depository system (CDS). "The private sector is interested in helping Nepse instal CDS. Most probably, the installation of CDS will be mentioned as a priority item in the present budget," the Sebon chief said.
"We have suggested to the government to allow NRNs and FIIs to allow invest in the secondary market," Nepse general manager Rewat Bahadur Karki said adding that physical infrastructure like automation and wide area network (WAN) have been developed for the purpose.
"We need to develop Internet trading for them to invest," he said adding that Nepse was working on client support software and modalities of central depositary system (CDS). "After that, we can invite FIIs and NRNs to invest in the secondary market," he said.
Nepse has also prepared some preliminary modalities of how NRNs and FIIs can invest. These modalities are still under discussion. "According to that, NRNs have to open accounts in commercial banks before investing in the secondary market," he said.
Also, how NRNs and FIIs can take back earnings with them is yet another burning issue that needs tackling. Meanwhile, there is still yet another Act waiting in the wings because it also needs parliament's approval. The Draft Regulation of Mutual Funds is in the pipeline. According to the draft, Mutual Funds can also invest 50 per cent of their capital in foreign countries.
"It is delayed due to the absence of a Trustee Act that in its own turn needs the parliament's approval," said the ministry source.
By Kuber Chalise (Source: THT)
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New Siddhartha Bank Ltd's counter
Siddhartha Bank Ltd has opened its extension counter on B & B Hospital premises. The bank — with seven branches, three here and four out of Kathmandu — has posted Rs 286 million operating profits, 64 per cent more than the last fiscal year, says a bank press release.
Source: THT
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Source: THT
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Wednesday, July 30, 2008
Poor corporate governance in banks major problem: NRB
Even though the Nepal Rastra Bank (NRB) has issued directives on corporate governance, poor culture of corporate governance in banking organizations has become a serious concern to the supervisor, said acting NRB Governor Krishna Bahadur Manandhar.
“The practice of public disclosure is yet to be effective to the extent desired,” said he, adding that the problem probably exists in almost all countries of the developing world.
While citing that the challenges faced by Nepali bank supervisors are similar to those faced by their counterparts in other developing countries, Manandhar said that the problem of information disclosure was deeper in Nepal as its accounting, financial reporting and auditing practices are yet to be fine-tuned and made compatible with international norms.
Manandhar said this while inaugurating the “First SEACEN-CTCBC/Deutsche Bundesbank Intermediate Course on Banking”, which kicked off in the capital Tuesday. The 5-day training has been organized by NRB.
According to a statement, 33 officials from the central banks of 10 countries like India, South Korea, the Philippines, Indonesia, Thailand and Bangladesh, among others, have participated in the training.
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“The practice of public disclosure is yet to be effective to the extent desired,” said he, adding that the problem probably exists in almost all countries of the developing world.
While citing that the challenges faced by Nepali bank supervisors are similar to those faced by their counterparts in other developing countries, Manandhar said that the problem of information disclosure was deeper in Nepal as its accounting, financial reporting and auditing practices are yet to be fine-tuned and made compatible with international norms.
Manandhar said this while inaugurating the “First SEACEN-CTCBC/Deutsche Bundesbank Intermediate Course on Banking”, which kicked off in the capital Tuesday. The 5-day training has been organized by NRB.
According to a statement, 33 officials from the central banks of 10 countries like India, South Korea, the Philippines, Indonesia, Thailand and Bangladesh, among others, have participated in the training.
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Effective regulation key
Effective regulation and supervision are key elements in preventing financial system from any systemic risk. "Thus, Nepal Rastra Bank (NRB) has in recent years adopted multi-pronged strategy to consolidate the regulatory and supervisory functions," said Krishna Bahadur Manandhar, acting governor of the NRB, inaugurating the first SEACEN-CTCBC/Deutsche Bundesbank Intermediate Course on ‘Banking Supervision and Financial Stability', organised by NRB-Bank and Financial Institution Regulation Department in collaboration with SEACEN Centre, here in the valley today.
The SEACEN seminar series have been instrumental in providing an excellent opportunity for central banks to foster ties amongst themselves to exchange knowledge and experiences, and to enhance the capacity of their employees.
Centre for Technical Central Bank Cooperation (CTCBC), Deutsche Bundesbank, the organisation of international has significant contribution to develop the capabilities of financial regulators throughout the world.
"It will benefit to us as well," he said, adding that problems of the banking sector tend to have significant effect across the wider economy hence it becomes the matter of interest for the regulators to make bank able to manage their risk and respond to challenges.
"Although, risk management and mitigation are the responsibilities of the concerned banks themselves, supervisors also have an important role to play in ensuring that banks are prudently managed for the stable financial system," he said. "Efforts have been made to enhance central bank staff's capacity to carryout both on-site and off-site supervisory functions."
The problems faced by regulators in the developing countries are similar. "Poor culture of corporate governance in banking organisations has become serious concern to the supervisors," he added. Manandhar also showed concern over the practice of public disclosure that is yet to be effective to the desired extent.
"Accounting, financial reporting and auditing practices still need massive fine tuning to make them compatible to the international norms," he said, adding that bank supervisors are the key custodians of the overall financial stability. "Technical skills on related fields have to be drawn from information technology, accounting, international financial activities and central banking practices."
The participants from Bangladesh Bank, National Bank of Cambodia, Reserve Bank of India, Bank Indonesia, Financial Supervisory Service Korea, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, Bank of Thailand, State Bank of Vietnam and Nepal Rastra Bank are taking part in the seminar.
Source: THT
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The SEACEN seminar series have been instrumental in providing an excellent opportunity for central banks to foster ties amongst themselves to exchange knowledge and experiences, and to enhance the capacity of their employees.
Centre for Technical Central Bank Cooperation (CTCBC), Deutsche Bundesbank, the organisation of international has significant contribution to develop the capabilities of financial regulators throughout the world.
"It will benefit to us as well," he said, adding that problems of the banking sector tend to have significant effect across the wider economy hence it becomes the matter of interest for the regulators to make bank able to manage their risk and respond to challenges.
"Although, risk management and mitigation are the responsibilities of the concerned banks themselves, supervisors also have an important role to play in ensuring that banks are prudently managed for the stable financial system," he said. "Efforts have been made to enhance central bank staff's capacity to carryout both on-site and off-site supervisory functions."
The problems faced by regulators in the developing countries are similar. "Poor culture of corporate governance in banking organisations has become serious concern to the supervisors," he added. Manandhar also showed concern over the practice of public disclosure that is yet to be effective to the desired extent.
"Accounting, financial reporting and auditing practices still need massive fine tuning to make them compatible to the international norms," he said, adding that bank supervisors are the key custodians of the overall financial stability. "Technical skills on related fields have to be drawn from information technology, accounting, international financial activities and central banking practices."
The participants from Bangladesh Bank, National Bank of Cambodia, Reserve Bank of India, Bank Indonesia, Financial Supervisory Service Korea, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, Bank of Thailand, State Bank of Vietnam and Nepal Rastra Bank are taking part in the seminar.
Source: THT
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Biratlaxmi Bank Ltd posts profit
Biratlaxmi Bank Ltd. has posted Rs. 4.751 million profit for the 4th quarter of fiscal year 2064/65 which is 113% more than the corresponding previous quarter.
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NMB Bank posts profit
NMB Bank Ltd. has posted Rs. 73.113 million net profit for the 4th quarter of fiscal year 2064/65.
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Himalayan Bank Ltd posts profit
Himalayan Bank Ltd. has posted Rs. 654.391 million profit for the 4th quarter of the fiscal year 2064/65 which is 33% more than the corresponding previous quarter.
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Lumbini Fin. & Leasing Company posts profit
Lumbini Fin. & Leasing Co. Ltd. has posted Rs. 62.787 million profit for the 4th quarter of the fiscal year 2064/65 which is almost 66% more than the corresponding previous quarter.
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Prudential Bittiya Sanstha posts profit
Prudential Bittiya Sanstha Ltd. has posted Rs. 11.397 million net profit for the 4th quarter of the fiscal year 2064/65 which is almost 51% more than the corresponding previous quarter.
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Premier Insurance Company: Right Share Issue Date Extended
Premier Insurance Co. Ltd. has extended its right share issue date to 24th August, 2008 (2065 Bhadra 8).
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Nepal Credit & Com. Bank posts profit
Nepal Credit & Com. Bank has delivered better financial progress to its corresponding previous 4th quarter result. It has posted Rs. 495.564 million net profit for the 4th quarter of the fiscal year 2064/65.
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Peoples finance posts profit
Peoples finance ltd. has posted Rs. 16.147 million net profit for the 4th quarter of the fiscal year 2064/65 which is 76% more than the corresponding previous quarter.
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Pokhara Finance posts profit
Pokhara Finance Ltd. has posted Rs. 12.382 million profit for the 4th quarter of the fiscal year 2064/65 which is 55% less than the corresponding previous quarter.
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Tuesday, July 29, 2008
NEPSE crosses 1000
The benchmark index of Nepalese stock market NEPSE has crossed 1000 points today. The surge of bull run records amid height of 1,001.99 points with 18.92 points change to the last day. Banking and Development Banks were the head contributors injecting 24.01 and 29.11 points change rested at 1038.18 points and 1420.91 points respectively. Bulls stamping their supremacy over the different resistances before and steadily stepped above 1000 points.Standard Chartered Bank Ltd., Nabil Bank Ltd., Kuber Merchant Bittiya Sastha Ltd , Imperial Financial Institution , Central Finance Co. Ltd. and Union Finance Co. Ltd. are some of the big gainers today.
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Budget Watch : Local markets, IT sector potential growth areas
Budget is the normal process of executing plans and policies of the government. It is a medium that decides the priority of the plans to be executed. It will address everything and move to that which has more priority. However, in the present context, more than the budget it is the political state of the country that is more important. Economic agenda must be taken forward in a long term prospective. And we need think beyond the budget also.
The essential thing is to boost the morale and confidence of the business community. If there is no confidence, no attempt will be successful. The economic sector should focus on how to make a long-term strategy to improve the present economic condition. We should be concerned about all the plans that have to be made.
In Nepal, be it hydropower sector, tourism, or floriculture (agriculture) — every sector is doing well. Even the small and the medium enterprises (SMEs), which work locally, should have a local market. Nepal has a population of about 25 million and I think it is a sizeable one. We can promote local markets easily in our country. Today's generation is mainly interested in information technology (IT) education, which we can compare to the future growth of the young generation in the IT sector. Therefore this sector too needs to be developed. But the main problem our state has is politics. So, first the political condition of the state should be de-politicised because politics has its impact on each and every sector of the state. The government has to play the role of facilitator rather than trying to do things on its own.
The manpower that we are sending abroad right now is unskilled. Thus, private sector should be encouraged to impart vocational training and generate required skilled manpower which will send home more remittance. With the right policy, the private sector can be encouraged in this regard. Education sector holds great importance cause educated society is good for long-term social development. There must be consistency in policy for this sector.
Source: THT
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The essential thing is to boost the morale and confidence of the business community. If there is no confidence, no attempt will be successful. The economic sector should focus on how to make a long-term strategy to improve the present economic condition. We should be concerned about all the plans that have to be made.
In Nepal, be it hydropower sector, tourism, or floriculture (agriculture) — every sector is doing well. Even the small and the medium enterprises (SMEs), which work locally, should have a local market. Nepal has a population of about 25 million and I think it is a sizeable one. We can promote local markets easily in our country. Today's generation is mainly interested in information technology (IT) education, which we can compare to the future growth of the young generation in the IT sector. Therefore this sector too needs to be developed. But the main problem our state has is politics. So, first the political condition of the state should be de-politicised because politics has its impact on each and every sector of the state. The government has to play the role of facilitator rather than trying to do things on its own.
The manpower that we are sending abroad right now is unskilled. Thus, private sector should be encouraged to impart vocational training and generate required skilled manpower which will send home more remittance. With the right policy, the private sector can be encouraged in this regard. Education sector holds great importance cause educated society is good for long-term social development. There must be consistency in policy for this sector.
Source: THT
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Alpic Everest Finance: Promoter Share Sale Notice
Alpic Everest Finance Co. Ltd. has published notice for sale of its prevailing promoter share.
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Nabil Bank posts profit
Nabil Bank Limited has posted Rs. 750.354 million profit(unaudited figure) for the fiscal year 2064-65.
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Bank of Kathmandu posts profit
Bank of Kathmandu has posted Rs. 371.251 million profit(unaudited figure) for the fiscal year 2064-65.
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Butwal Finance posts profit
Butwal Finance Ltd. has posted Rs. 14.468 million profit(unaudited figure) for the fiscal year 2064-65.
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Central Finance posts profit
Central Finance Co. Ltd. has posted Rs. 27.2 million profit(unaudited figure) for the fiscal year 2064-65.
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Gandaki Development Fin. Inst.: Right Share Certificate Distribution
Gandaki Development Fin. Inst. is distributing its right share certificate to the shareholders from 29th July, 2008 (2065 Shrawan 14).
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Goodwill Finance posts profit
Goodwill Finance Co. Ltd. has posted Rs. 13.2 million profit(unaudited figure) for the fiscal year 2064-65.
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Gorkha Finance posts profit
Gorkha Finance Ltd. has posted Rs. 8.3066 million profit(unaudited figure) for the fiscal year 2064-65.
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Machhapuchchhre Bank distributing right share certificate
Machhapuchchhre Bank Ltd. is distributing its right share certificate to the shareholders from 29th July, 2008 (2065 Shrawan 14).
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Nepal Housing & Merchant Finance extended right share issue date
Nepal Housing & Merchant Fin. has extended its right share issue date upto 22nd August, 2008 (2065 Bhadra 6).
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Nepal SBI Bank posts profit
Nepal SBI Bank Limited has posted Rs. 255.117 million profit(unaudited figure) for the fiscal year 2064-65.
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Sanima Bikash Bank posts profit
Sanima Bikash Bank Ltd. has posted Rs. 22.03 million profit(unaudited figure) for the fiscal year 2064-65.
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Standard Chartered Bank posts profit
Standard Chartered Bank Ltd. has posted Rs. 814.369 million profit(unaudited figure) for the fiscal year 2064-65.
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Business Development Bank posts profit
Business Development Bank Ltd. is distributing its right share certificate to the shareholders from 29th July, 2008 (2065 Shrawan 14).
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Universal Finance Ltd posts profit
Universal Finance Ltd has posted Rs.17.773 million Profit(Unaudited Figure)for the fiscal year 2064/065
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Monday, July 28, 2008
‘Tax on life insurance receipts must be scrapped’
Manoj Kumar Bhattarai is general manager of Nepal Life Insurance Company (NLIC), a leading life insurance company of the country. He holds Masters Degree in Business Administration and Commerce from Tribhuvan University and has served Nepali financial sector in different capacities for more than a decade. He has worked in Enabling State Programme (ESP) and also in United Nations Developments Program (UNDP), Malawi as UN Volunteers. He is a life member of Management Association of Nepal (MAN) and holds membership of about a dozen business and social organizations. In a recent interview with Prem Khanal of The Kathmandu Post, Bhattarai highlighted the growth, challenges and prospects of life insurance business in Nepal. Excerpts:
How has NLIC performed over the years?
We have grown steadily at about 24 percent over the seven years of operations. As of 2007/08, we have sold more than 164,000 policies. Our product niche ranges from regular endowment policy to children policy to money back policy. We also sell triple benefit and double benefit policies. We recently launched another product named Jeevan Sarathi, under which life of both husband and wife is covered. Of our total products, endowment policy makes up around 70 percent of the business. We have a sum insured liability of 18 billion rupee and earned a premium income of Rs 3.37 billion. We are presently operating with the strength of 9,000 active agents at the grass root level. Our investments are secured. NLIC City Centre building of the Company, a multiplex under construction at Kamalpokhari is about to get completed for commercial operations. We have successfully delivered a sound returns to our clients.
How has life insurance market grown in the country?
Well, the market has grown rapidly over the last eight years. Before we came into operations, only two companies were catering life insurance services to the people. The level of insurance awareness was very low. We sold mere 1,474 policies in the first fiscal year we operated, whereas in the recently concluded fiscal year we sold 40,000 policies. This shows how fast the market is being expanded. Of course, the awareness is still very low compared to what we would like to have. But today I can confidently say if you have a product and ability to sell, people will readily buy it. Also, the number of life insurance companies has increased to nine. They cover all the cities and are present in economically active towns as well.
How healthy is the competition in the market?
Life insurance is fairly operated business. Still some unhealthy practices have emerged of late. Few companies are competing by giving extra incentives on top of the regular business commissions to the agents rather than coming up with attractive products. This has created an environment wherein agents could be manipulated. It has put undue pressure on companies like us that focus on distributing the benefits to clients rather than siphoning earnings on other areas. It will also adversely affect the new companies. As for the business, I think the companies still need not to compete with each other, as there is a huge untapped market in the country.
What are the major challenges facing life insurance sector?
I think raising the level of insurance awareness among people is still the foremost challenge facing the companies. People's perception is not much positive towards the business, as it is related with death and posthumous social security. Whatever insurance market companies have tapped far, they have created it through their individual efforts. This has not proved enough. The government, regulators and companies must launch joint campaigns to make people realize the real benefits of life insurance. Apart from that, life insurance companies in Nepal have falling short of innovative product designs and good product mix. Our companies are still to develop a strong corporate image and create an environment of trust to start unit link products linked with various capital instruments like bonds, shares and mutual funds. I think attaining this trust and moving to a higher stage of product development is another major challenge of the industry.
How friendly in the insurance regulator and government policies?
Insurance Board, the regulatory authority, has become much more mature than in the past. However, the Insurance Act and Regulations are more focused towards non-life insurance businesses. This must be changed. The government regulations and policies must cater more to the needs of the life insurance business. More so because life insurance fills in the 'social security' gap, in which the government has no presence. The government is presently imposing tax on death claims and final insurance receipts of the clients. This does not match with insurance norms and must be scrapped. The regulator must also think seriously towards widening the investment areas for the companies.
What are your future plans?
Well, our immediate focus is to consolidate the market. For that we have develop our corporate slogan of Sabaiko Lagi Jeevan Beema (life insurance for all) and started 365 days life insurance service. We are also thinking of coming up with a single premium product, under which a client can pay the total premium in one installment. We are also working on a product that caters to the education financing needs of the clients.
Source: eKantipur
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How has NLIC performed over the years?
We have grown steadily at about 24 percent over the seven years of operations. As of 2007/08, we have sold more than 164,000 policies. Our product niche ranges from regular endowment policy to children policy to money back policy. We also sell triple benefit and double benefit policies. We recently launched another product named Jeevan Sarathi, under which life of both husband and wife is covered. Of our total products, endowment policy makes up around 70 percent of the business. We have a sum insured liability of 18 billion rupee and earned a premium income of Rs 3.37 billion. We are presently operating with the strength of 9,000 active agents at the grass root level. Our investments are secured. NLIC City Centre building of the Company, a multiplex under construction at Kamalpokhari is about to get completed for commercial operations. We have successfully delivered a sound returns to our clients.
How has life insurance market grown in the country?
Well, the market has grown rapidly over the last eight years. Before we came into operations, only two companies were catering life insurance services to the people. The level of insurance awareness was very low. We sold mere 1,474 policies in the first fiscal year we operated, whereas in the recently concluded fiscal year we sold 40,000 policies. This shows how fast the market is being expanded. Of course, the awareness is still very low compared to what we would like to have. But today I can confidently say if you have a product and ability to sell, people will readily buy it. Also, the number of life insurance companies has increased to nine. They cover all the cities and are present in economically active towns as well.
How healthy is the competition in the market?
Life insurance is fairly operated business. Still some unhealthy practices have emerged of late. Few companies are competing by giving extra incentives on top of the regular business commissions to the agents rather than coming up with attractive products. This has created an environment wherein agents could be manipulated. It has put undue pressure on companies like us that focus on distributing the benefits to clients rather than siphoning earnings on other areas. It will also adversely affect the new companies. As for the business, I think the companies still need not to compete with each other, as there is a huge untapped market in the country.
What are the major challenges facing life insurance sector?
I think raising the level of insurance awareness among people is still the foremost challenge facing the companies. People's perception is not much positive towards the business, as it is related with death and posthumous social security. Whatever insurance market companies have tapped far, they have created it through their individual efforts. This has not proved enough. The government, regulators and companies must launch joint campaigns to make people realize the real benefits of life insurance. Apart from that, life insurance companies in Nepal have falling short of innovative product designs and good product mix. Our companies are still to develop a strong corporate image and create an environment of trust to start unit link products linked with various capital instruments like bonds, shares and mutual funds. I think attaining this trust and moving to a higher stage of product development is another major challenge of the industry.
How friendly in the insurance regulator and government policies?
Insurance Board, the regulatory authority, has become much more mature than in the past. However, the Insurance Act and Regulations are more focused towards non-life insurance businesses. This must be changed. The government regulations and policies must cater more to the needs of the life insurance business. More so because life insurance fills in the 'social security' gap, in which the government has no presence. The government is presently imposing tax on death claims and final insurance receipts of the clients. This does not match with insurance norms and must be scrapped. The regulator must also think seriously towards widening the investment areas for the companies.
What are your future plans?
Well, our immediate focus is to consolidate the market. For that we have develop our corporate slogan of Sabaiko Lagi Jeevan Beema (life insurance for all) and started 365 days life insurance service. We are also thinking of coming up with a single premium product, under which a client can pay the total premium in one installment. We are also working on a product that caters to the education financing needs of the clients.
Source: eKantipur
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International Leasing and Finance Company posts profit
International Leasing and Fin. Co. has posted Rs. 45.950 million profit for the 4th quarter of fiscal year 2064/65.
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NIDC Capital Market posts profit
NIDC Capital Market has recorded Rs. 41.909 million profit for the 4th quarter of fiscal year 2064/65.
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Nepal Housing and Merchant Finance posts profit
Nepal Housing and Merchant Fin. has posted Rs 15.371 million profit for the 4th quarter of fiscal year 2064/65.
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Kathmandu Finance Ltd posts profit
Kathmandu Finance Ltd. has posted Rs. 9.642 million profit for the 4th quarter of fiscal year 2064/65 which is almost 46% more than the corresponding previous quarter.
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NABIL honours agent partners
Nabil bank today organised an interaction programme to honour its agent partners from around the country. "The ‘Nabil Bank Western Union Agent Conference-2008' is expected to widen our areas of service for our customers in line with our mission statement to be the First Choice Full financial Solutions Provider," Anil Shah, chief executive officer (CEO), said presenting his remarks on the remittance business in Nepal. Nabil Bank is the principal agent of Western Union Money Transfer in Nepal. It has arrangements with established entities all over the country to facilitate the money transfer service. in the form of sub-agents.
Source: THT
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Source: THT
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Nepal Industrial and Commerce Bank completes a decade
NIC Bank completed 10 years of operation this week. Issuing a statement on the occasion, the bank said it has catered services to 50,000 customers over this period and has presence across the country with 16 branches. Over the next decade, the bank said, it would endeavor to establish itself as a leader in catering to small and medium enterprises. During the period, the bank became the first commercial bank to receive the ISO 9001: 2000 certification for quality management system. It was also the first bank in Nepal to receive a line of credit from International Finance Corporation (IFC), the World Bank, under its Global Trade Finance Program and was awarded 'Bank of the Year 2007' by the Banker, Financial Times, London, says the statement.
Source: eKantipur
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Source: eKantipur
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Global Bank opens two ATMs
Global Bank this week opened ATM service in its New Road branches in Kathmandu and Pokhara. In a statement, the bank said it is also planning to install 11 additional ATMs. In the year and half since the bank came into operations, the bank has opened seven branches including that in Birgunj, Kathmandu, Baglung, Pokhara, Biratnagar and Lahan.
Source: eKantipur
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Source: eKantipur
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Sunday, July 27, 2008
Prabhu Finance Company posts profit
Prabhu Finance Company has posted Rs 16.3 million net profit in the fiscal year 2007-08. “It has also collected Rs 995.5 million deposits and floated Rs 752.5 million loans,” states a press release. The finance company has eight branches and plans to open more soon.
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Annapurna Bikash Bank earned profit
Annapurna Bikash Bank Ltd. has posted Rs. 10.472 million net profit for the 4th quarter of fiscal year 2064/65 which is 88.62% more than the corresponding previous quarter.
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Malika Development Bank earned profit
Malika Development Bank Ltd. has posted Rs. 14.135 million net profit for the 4th quarter of fiscal year 2064/65 which is almost 84% more than the corresponding previous quarter.
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Imperical Finance Institution earned profit
Imperical Finance Institution has posted Rs. 10.382 million profit for the 4th quarter of fiscal year 2064/65 which is around 54% more than the corresponding previous quarter.
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Triveni Bikas Bank's IPO oversubscribed
Triveni Bikash Bank Ltd. issued its Initial public offering on 17th July, 2008. 150000 shares worth Rs. 15 million were offered. However 12600000 number of share applications worth Rs. 1.26 billion were received. Hence, the IPO of Triveni was oversubscribed by 84 times.
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Royal Merchant Banking & Finance earned profit
Royal Merchant Banking & Finance Ltd. has posted Rs. 20.036 million net profit for the 4th quarter of fiscal year 2064/65 which is around 22% more than the corresponding previous quarter.
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Gurkha Development Bank earned profit
Gurkha Development Bank has recorded Rs. 36.121 million net profit for the 4th quarter of fiscal year 2064/65 which is around 92% more than the corresponding previous quarter.
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Himchuli Bikash Bank earned profit
Himchuli Bikash Bank Ltd. has recorded Rs. 12.040 million net profit for the 4th quarter of fiscal year 2064/65.
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Guheswori Merchant Bank earned profit
Guheswori Merchant Banking & Finance Ltd. posted Rs. 14.699 million profit for the 4th quarter of fiscal year 2064/65.
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Pak banks fleecing depositors: Report
Pakistani banks are taking advantage of a weak regulatory framework to form cartels and rake in windfall profits, a new report says.
“The most important issue is that Pakistan has one of the highest interest rate spreads in the world,” said Hamid Siraj of the non-profit NGO Consumer Rights Commission of Pakistan (CRCP) while commenting on the report, Dawn newspaper based here reported today.
CRCP and Asia Foundation have jointly authored the report, titled ‘Consumer financing in Pakistan: Issues, challenges and way forward’. According to Siraj, an analysis of the interest rate pattern in Pakistan showed the spread had vacillated between 5.95 and 9.58 per cent during 1990-2005.
In recent years, the spread has exceeded seven per cent.
The report says the high interest rate spread indicates competitiveness in banking sector in Pakistan is either absent or very poor. This is largely due to weak regulation of interest rates despite the fact that the State Bank of Pakistan (SBP) has powers to control the spread through its monetary policies.
“While non-operating loans and high administrative costs could be major reasons in countries where the spread is high, these cannot be said to be true of Pakistan because banks are earning huge profits at the cost of savings of depositors,” the report says. “High interest rate spread is damaging competitiveness in the economy in general and in the financial sector in particular,” it adds.
The report says the SBP should exercise its powers to fix a reasonable rate of return for banks as well as depositors. As a matter of priority, interest rate spread should be reduced, at least, to the level of average spread in South Asia.
“The banking sector is earning record profits by charging unrealistic and exceptionally high interest rates. As a result, despite considerable ratio of non-performing loans, annual profitability of banks has reached 76 per cent on an an nual basis,” the report says.
“This is evident from the pretax annual profit of all banks, which was Rs.7 billion in 2000 and jumped to Rs.123.4 billion in 2006. In recent months, deceleration trends are on the rise in consumer financing due to increasing loan default and use of credit worthiness information by the banks,” it adds.
Another critical issue, according to the report, is that almost all consumer loans are on the basis of variable mark-ups, which has reduced the loanservicing capacity of borrowers due to progressive increase in the rates. “In addition, the growth in consumer financing has put extremely great inflationary pressure on the economy,” the report adds.
Source: THT
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“The most important issue is that Pakistan has one of the highest interest rate spreads in the world,” said Hamid Siraj of the non-profit NGO Consumer Rights Commission of Pakistan (CRCP) while commenting on the report, Dawn newspaper based here reported today.
CRCP and Asia Foundation have jointly authored the report, titled ‘Consumer financing in Pakistan: Issues, challenges and way forward’. According to Siraj, an analysis of the interest rate pattern in Pakistan showed the spread had vacillated between 5.95 and 9.58 per cent during 1990-2005.
In recent years, the spread has exceeded seven per cent.
The report says the high interest rate spread indicates competitiveness in banking sector in Pakistan is either absent or very poor. This is largely due to weak regulation of interest rates despite the fact that the State Bank of Pakistan (SBP) has powers to control the spread through its monetary policies.
“While non-operating loans and high administrative costs could be major reasons in countries where the spread is high, these cannot be said to be true of Pakistan because banks are earning huge profits at the cost of savings of depositors,” the report says. “High interest rate spread is damaging competitiveness in the economy in general and in the financial sector in particular,” it adds.
The report says the SBP should exercise its powers to fix a reasonable rate of return for banks as well as depositors. As a matter of priority, interest rate spread should be reduced, at least, to the level of average spread in South Asia.
“The banking sector is earning record profits by charging unrealistic and exceptionally high interest rates. As a result, despite considerable ratio of non-performing loans, annual profitability of banks has reached 76 per cent on an an nual basis,” the report says.
“This is evident from the pretax annual profit of all banks, which was Rs.7 billion in 2000 and jumped to Rs.123.4 billion in 2006. In recent months, deceleration trends are on the rise in consumer financing due to increasing loan default and use of credit worthiness information by the banks,” it adds.
Another critical issue, according to the report, is that almost all consumer loans are on the basis of variable mark-ups, which has reduced the loanservicing capacity of borrowers due to progressive increase in the rates. “In addition, the growth in consumer financing has put extremely great inflationary pressure on the economy,” the report adds.
Source: THT
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Gold fluctuates in domestic market
Gold price showed mixed behaviour this week - reaching a high of Rs 21,690 on Tuesday and dipping to a low of Rs 20,405 per 10 gram on Thursday.
“The strong American dollar and fall in the price of crude oil to $126 per barrel have pulled the price of the precious yellow metal down,” states a release of Nepal Gold and Silver Dealers’ Association’s (NEGOSIDA).
Gold price opened at Rs 21,350 per 10 gram on Sunday in the domestic market, a fall of Rs 85 per 10 gram from the closing of Rs 21,435.
The precious yellow metal remained constant at Rs 21,350 per 10 gram on Monday too. But on Tuesday, it flared to Rs 21,690.
However, it plunged to Rs 21,090 on Wednesday.
On Thursday, it further dipped to Rs 20,405 to close at Rs 20,700 per 10 gram on Friday.
Similarly, the price of silver also plunged by four rupees to Rs 386 from the opening price of Rs 390 per 10 gram on Sunday.
Source; THT
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Indian group to invest heavily in Nepal
India-based Bhushan Group plans to operate three big industries in Nepal — two in Biratnagar in the eastern region and one in Surkhet in the mid-western region as soon as the political uncertainty ends in Nepal. The group is carrying out feasibility study regarding the establishment of the industries. Bhushan Group is already operating Arati Strips — a zinc industry — with an investment of Rs 5 billion at Tankisinwari in Morang district for the past six years.
“Many Indian investors are in confusion because of the political instability in Nepal,” Roshit Unnithan, general manager of Arati Strips said. “The group has already got approval for the establishment of a cement factory in Surkhet at a cost of Rs 1600 million,” Unnithan said, adding, “Study regarding the establishment of two industries manufacturing plastic pipes and corrugated iron in Morang-Sunsari cor ridor is underway.” “If the government could attract big investors, it would help in the development of the eastern region,” Mahesh Kumar Jaju, chairman of Morang Trade Association said, adding, “Though several Indian investors are interested in investing in Nepal they are awaiting political stability in Nepal.” Meanwhile, the export of corrugated iron to India decreased by Rs 740 million in the fiscal year 2064-65 BS.
Repeated bandhs and 10 per cent additional duty imposed by the Indian government are the reasons behind the decrease in the export of corrugated iron, Arati Strips said adding that the industry had exported corrugated iron worth Rs 6,540 million in the fiscal year 2063-64 BS.
Arati Strips exports 87 per cent of its manufacture to India and rest of the product is consumed in the Nepali market. Arati Strips, Hulas Steel Industries and Rajesh Metals are some of the big industries manufacturing corrugated iron in Nepal.
Source: THT
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“Many Indian investors are in confusion because of the political instability in Nepal,” Roshit Unnithan, general manager of Arati Strips said. “The group has already got approval for the establishment of a cement factory in Surkhet at a cost of Rs 1600 million,” Unnithan said, adding, “Study regarding the establishment of two industries manufacturing plastic pipes and corrugated iron in Morang-Sunsari cor ridor is underway.” “If the government could attract big investors, it would help in the development of the eastern region,” Mahesh Kumar Jaju, chairman of Morang Trade Association said, adding, “Though several Indian investors are interested in investing in Nepal they are awaiting political stability in Nepal.” Meanwhile, the export of corrugated iron to India decreased by Rs 740 million in the fiscal year 2064-65 BS.
Repeated bandhs and 10 per cent additional duty imposed by the Indian government are the reasons behind the decrease in the export of corrugated iron, Arati Strips said adding that the industry had exported corrugated iron worth Rs 6,540 million in the fiscal year 2063-64 BS.
Arati Strips exports 87 per cent of its manufacture to India and rest of the product is consumed in the Nepali market. Arati Strips, Hulas Steel Industries and Rajesh Metals are some of the big industries manufacturing corrugated iron in Nepal.
Source: THT
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Bull run ends NEPSE Index sheds 12.77 points, turnover down 51pc
After a climbing for several weeks, Nepal Stock Exchange (NEPSE) lost pace this week, as the county's only secondary market lost 12.77 points to reach 972 .77 points on the last day of weekly trading.
508,623 units of shares worth Rs 435.6 million were traded through 2,966 transactions this week. Total trade in the share market tumbled by 50.43 percent in term of transaction amount.
A total 1.46 million units of shares amounting Rs 8.78 million were exchanged through 2,219 transactions last week. Transactions of companies under class 'A' reached Rs 298 million.
Under group-wise trading, the group index of commercial banks recorded a loss of 14.35 points to reach 1001.81 points on Wednesday, the last day of transaction this week.
Similarly, the hydropower group index saw a fall of 44.82 points to finish at 1249.33 at close of the trading week.
The index of finance companies also suffered a loss of 42.59 points to touch 1125.42 points during the week. The insurance group witnessed a marginal setback by 2.55 points to end at 828.58 points.
However, shareholders of development banks were happy this week as the index of the development banks was up 21.27 points from an opening of 1325.95 points on the first day of transaction.
The sensitive index, an indicator of transactions of companies under group 'A', tumbled by 8.43 points to 253.75 points this week.
The most number of shares traded this week were of Nepal Credit and Commerce Bank. According to NEPSE, 111,000 shares of the bank amounting Rs 51.6 million changed hand through 255 transactions.
Nepal Credit and Commerce Bank was followed by Bank of Kathmandu, Kist Merchant Bank and Finance, Nepal Investment Bank and Standard Chartered Bank (Nepal) respectively in terms of transaction amount during the week, stated NEPSE.
Source: eKantipur
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508,623 units of shares worth Rs 435.6 million were traded through 2,966 transactions this week. Total trade in the share market tumbled by 50.43 percent in term of transaction amount.
A total 1.46 million units of shares amounting Rs 8.78 million were exchanged through 2,219 transactions last week. Transactions of companies under class 'A' reached Rs 298 million.
Under group-wise trading, the group index of commercial banks recorded a loss of 14.35 points to reach 1001.81 points on Wednesday, the last day of transaction this week.
Similarly, the hydropower group index saw a fall of 44.82 points to finish at 1249.33 at close of the trading week.
The index of finance companies also suffered a loss of 42.59 points to touch 1125.42 points during the week. The insurance group witnessed a marginal setback by 2.55 points to end at 828.58 points.
However, shareholders of development banks were happy this week as the index of the development banks was up 21.27 points from an opening of 1325.95 points on the first day of transaction.
The sensitive index, an indicator of transactions of companies under group 'A', tumbled by 8.43 points to 253.75 points this week.
The most number of shares traded this week were of Nepal Credit and Commerce Bank. According to NEPSE, 111,000 shares of the bank amounting Rs 51.6 million changed hand through 255 transactions.
Nepal Credit and Commerce Bank was followed by Bank of Kathmandu, Kist Merchant Bank and Finance, Nepal Investment Bank and Standard Chartered Bank (Nepal) respectively in terms of transaction amount during the week, stated NEPSE.
Source: eKantipur
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