Clean Energy Development Bank Share Allotment Result

Shares of Clean Energy Development Bank has been allotted. You can access the allotment information here
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Nepse to initiate float index

Nepal Stock Exchange (Nepse) has come of age ... It will introduce float index and sensitive float index — the globally accepted best practice to make the secondary market index more realistic — from Sunday.

Free-float methodology refers to an index construction methodology that takes into consideration only the free-float market capitalisation of a company for the purpose of index calculation and assigning weight to stocks in index.

"A free-float index reflects the market trends more rationally as it takes into consideration only those shares that are available for trading in the market," said Rewat Bahadur Karki, general manager and chief executive officer (CEO) of the sole secondary market.

Free-float market capitalisation is defined as the proportion of total shares issued by the company that is readily available for trading in the market. For example, 150 million-unit of shares are listed in the Nepse but tradable shares account for only a little over 53,2000. "Since all NT shares are not available for trading, it should not weight the price with total outstanding shares to compute the index," he added.

"It is essentially the total outstanding shares, less the promoter's holding and other shares with a lock-in period," he said, adding that the float index will boost investors' confidence as it will reflect the real market. However, Karki clarified, "Nepse is not completely shifting to free-float methodology immediately for calculating the index. The present Nepse index will also continue."

The float index and sensitive float index will be calculated from the closing price on August 24 as before that date no variation was observed. The NT shares started trading from August 24. Share analyst Rabindra Bhattarai pointed out, "Under a full-market capitalisation methodology, companies with large market capitalisation like NT and low free-float cannot generally be included in the index because they tend to distort the index by having an undue influence on index movement, like NT shares did in the past weeks."

However, under the free-float methodology, since only the free-float market capitalisation of each company is considered for index calculation, it is possible to include such closely held companies in the index while preventing their undue influence on the index movement at the same time. Float-index generally excludes promoters' holding, government holding, strategic holding and other locked-in shares — like employees shares — that will not come to the market for trading in the normal course.

The market capitalisation was Rs 4.14 trillion before the trading of Nepal Telecom (NT) shares started. Now it has hit Rs 5.37 trillion, which is misleading the capital market. "The market capitalisation of each company in a free-float index is reduced to the extent of its readily available shares in the market," said Bhattarai. Free-float methodology makes the index more broad-based by reducing the concentration of the top few companies. "For example, the concentration of top five companies like Standard Chartered, Nabil Bank, Bank of Kathmandu, Nepal telecom and Nepal Investment Bank will reduce," he said. Free-float will reduce the weight of stocks in the index. Some stocks are likely to be hit. "Their weight in Nepse is likely to decline but price change in some company's shares will not affect the whole index," Bhattarai said adding that investors will benefit as it is more realistic than the sensitive index or the all-share index in practice now.
Source: THT
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Prabhu Finance Ltd office opens

Acting governor of Nepal Rastra Bank Krishna Bahadur Manandhar inaugurated Prabhu Finance Ltd's (PFL) head office at Lainchour in Kathmandu on Thursday.
Source: THT
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Union Finance Ltd (UFL) gives bonus share

The board meeting of Union Finance Ltd (UFL) has decided to give 20 per cent bonus share and four per cent cash dividend from the net profit of fiscal year 2007-08 after it was approved from Nepal Rastra Bank (NRB). "The company has a paid up capital of Rs 725 million," states a press release. Deposit base of the company is at Rs 866 million. It is also in a process of issuing 1:1 right share in near future.
Source: THT
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Income tax revenue up by 21 per cent

Income tax revenue increased by 21.4 per cent to reach Rs 19.1 billion in the fiscal year 2007-08 compared to an increase of 42.7 per cent in the previous fiscal year. A significant amount of income tax paid by large taxpayer companies like Nepal Telecom (NT), Surya Nepal, Spice Nepal, Gorkha Brewery, Standard Chartered Bank Nepal Ltd contributed to such a growth of income tax collection in the review year, said a report by Nepal Rastra Bank. In 2007-08, VAT made up 29 per cent followed by customs duties at 18.4, income tax at 17.8 and excise duty at 10.4 per cent. In the previous year, such ratios were 29.8, 19, 17.9 and 10.7 per cent, respectively. Revenue mobilisation also increased by 22.6 per cent to reach Rs 107.6 billion in the fiscal year 2007-08. Revenue had risen by 21.3 per cent to reach Rs 87.7 billion in 2006-07, the central bank report said. Consequently, revenue to GDP ratio climbed to 13.1 per cent from 12.1 per cent the last fiscal year. Such an impressive growth of revenue was on account of substantial increase in import of merchandise goods and resulting increase in customs duties, VAT revenue, excise duty and increase in income tax as well as non-tax revenue. Of the total revenue mobilisation, VAT revenue grew by 19.2 per cent to Rs 31.2 billion in 2007-08. The growth in VAT revenue was on account of growing imports and consumption induced by the rise in remittances and reforms in VAT administration in the form of establishment of Large Taxpayers Unit, strengthening of the billing system and non-filers' management. In 2007-08, customs revenue rose by 18.6 per cent to Rs 19.8 billion compared to an increase of nine per cent the previous year. Reforms in customs administration, increase in imports 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. Excise revenue increased by 20 per cent to Rs 11.2 billion compared to an increase of 43 per cent the last fiscal year year. Reforms in excise administration, identification of new excisable goods and increase in imports of high tax yielding vehicles and spare parts accounted for increase in excise revenue, said the NRB report. Non-tax revenue grew by 29 per cent to Rs 21.3 billion compared to an increase of 17.2 per cent the last fiscal year. Such increase in non-tax revenue was on account of increase in dividends paid by public enterprises including NRB as well as the amount received by the government in the form of principal repayment from NT, Nepal Electricity Authority and Civil Aviation Authority.
Source: THT
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Third biggest hydel project in shambles

The third biggest hydropower project of the country at Panauti in Kavre is in a dilapidated condition. All because Nepal Electricity Authority (NEA) has not paid any attention to repairing it. The project was begun in 2017 BS and started generating electricity in 2022 BS. It is the third largest after the Pharping and Sundarijal hydropower projects. The equipment of the Panauti hydropower centre which produced 2400 kw of electricity per hour is worn out but NEA has showed no concern for repairs and now the centre is producing only 975 kw. Although production began declining since 10 years, NEA remained deaf to repeated reminders to get it repaired, said an employee at the hydropower centre. The breakers conked out 10 years ago and the second unit went out of order three years ago but no repirs were carried out, said chief of the centre Shyam Lal Suwal. Although one unit alone could generate 800 kw, it now produces only 450 kw while another produces 525 kw. There is no dearth of water, but the machines are dilapidated. The centre has demanded Rs 30 million this year and hopes to get it in the next budget. Meanwhile, some 200 families in six remote VDCs of Ilam district have been provided with electricity facility and also technical education after the establishment of micro hydro projects. With financial support from the Namsaling Community Development Centre (NCDC) and at the initiative of locals, micro hydro projects — Pyang VDC (seven kw), Sakafara (three kw), Jeetpur (three kw), Jogmai (three kw) and Imada-6 (two kw) have been established at a cost of Rs 2 lakh, said the centre's sub-engineer Dhanendra Bhandari. The users got 40 per cent as grant from the Alternate Energy Centre. Sources said that the micro hydro projects in these VDCs were essential as there was no possibility of electrification through the central grid. After the establishment of these projects, a rice mill has been set up. People have also got the opportunity to use computers for technical education and communication. The locals are also able to engage in income-generating work.
Source: THT
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Decision of Civil Merchant Bittiya Sanstha Ltd

The BOD meeting of the company has decided to register an investment company named Civil Investment Company Pvt. Limited with a capital of 1250000. Besides, the resignation of one of the Director named Mahesh Prasad Bhattarai has been approved by the BOD of the company. Inorder to collect the barren capitals of public to streamline them to invest institutionally thowards the development of the country a group of Bankers and Engineers have promoted Civil Merchant Bittiya Sanstha Ltd. (CMBSL) in 2005 under the Company Act 2053 and Bank & Financial Institution Ordinance, 2062.
Source: Jamb News Service
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Jyoti Spinning Mill's Special General Meeting

Jyoti Spinning Mills Ltd. has announced its special general meeting to be held on 3rd October 2008 (2065 Ashwin 17).
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Shree Investment Finance's Right Share Certificate Distribution

Shree Investment Finance Co. Ltd. is distributing its right share certificate from 11th September 2008 (2065 Bhadra 26).
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Ministers assure business community

Rajendra Mahato, Minister for Industry and Supplies has assured the business community of addressing their problems in the government's programmes and policy.

"The government's programmes and policy will address the business community's problems," said Mahato to a team of Nepal Chamber of Commerce (NCC) that went to meet him at his office here today. He also assured them of positive outcome from the Prime Minister Pushpa Kamal Dahal 'Prachanda's India visit that will feature bilateral trade issues between Nepal and India. During the meet with the representatives of the NCC, Mahato said that the next budget will certainly make on various issues related to the development activities. "I hope it will be very productive for all the industrialists and businessmen," Mahato said. Talking about the inconvenience in petroleum products' supply, he assured the business community that by the end of this month the government will sort out the problems and make a smooth supply of petroleum products. NCC president Surendra Bir Malakar, on the occasion, said that they were quite hopeful of the coming budget that is expected to be favourable for increasing the confidance of business community. "The coming budget might be able to help bring a sustainable peace and build infrastructure," he added. Malakar also urged to form a Unified National Supply Action Committee and Unified Valley Supply Committee for the smooth supply of the essentials. Similarly, Astalaxami Shakya Minister of Industry said them that the next decade will be of devoted to development.

The minister for the newly created Ministry of Industry said that the next 10 years will be of domestic industries. "Cottage industries in the rural areas will be in the priority," she said adding that with the help of all the related local bodies and proper planning the industry sector will be taken care of.
Source: THT
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President Yadav Unveils Govt Policies and Programmes

President Dr. Ram Baran Yadav today presented the government's policies and programme at the fourth session of the legislative-parliament of the Constituent Assembly (CA).

CA members are scheduled to debate on the policies and programme on September 12, 13 and 14. The parties have been asked to register their amendment proposals on the government's 90-point document by tomorrow. Main objectives of the policies and programme is to bring the peace process to a logical end, write a new democratic, federal constitution on time, and bring about socio-economic transformation through rapid economic growth.

The document has given, among others, top priority to develop 10,000 MW of electricity in ten years so as to achieve the goal of double-digit growth rate. The government has envisaged forming various commissions, including Truth and Reconciliation Commission and Commission to find cases of disappearance, in accordance with the Comprehensive Peace Accord (CPA). A national level inclusive commission would also be formed in order to give due legal space to women, indigenous and ethnic communities, daltis, minorities, Madhesis and Muslim people in state mechanism. In order to promote economic activities through cooperatives, a high-level cooperative board will be set up under the prime minister's chairmanship. Another high-level investment board, led by the PM, would also be formed to create investment-friendly environment and to encourage the private sector in setting up employment generating industries.

The National Planning Commission would be restructured in line with federal concept. A high-level scientific land reforms commission would also be formed to bring about timely reforms in land, which is the backbone of the country's agriculture. A separate Muslim Commission would be constituted to uplift socio-economic condition of the Muslim community. A labour commission would be formed to address the grievances faced by the labourers and to create friendly relations between the employers and employees.

Construction of a new international and regional airport would be initiated to attract more tourists in new areas of tourism, the policy document says. Income from the remittance would be best utilised in the development of national industries and infrastructure development through the introduction of an appropriate policy.

An integrated policy would be introduced to control flood and breaching of embankments by big rivers. Relief, rehabilitation and reconstruction works would be launched on priority basis to address the problems that occurred due to the breach of the Koshi embankment.

Following the President's address, PM Pushpa Kamal Dahal "Prachanda" claimed that the polices and programme had reflected the "people aspirations".
Source: THT
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Govt policies, programmes publicised; focus on new constitution writing, peace process

The new government on Wednesday publicised its much-hyped policies and programmes that focus mainly on advancing the ongoing peace process to a logical end and drafting a new democratic constitution on time.

President Dr Ram Baran Yadav presented the policies and programmes on behalf of the Maoist-led government at the Constituent Assembly (CA) today. The policies and programmes stresses on taking the peace process to a logical end and writing a new democratic constitution within two years. The document focuses on writing the statute coordinating with all political parties within the specified time.

President Yadav said, "The government's principal responsibility is to assist in taking the peace process to a logical end, turning the socio-economic transformation towards a progressive direction and writing the federal democratic constitution, as per the people's aspirations, within specified time."

The government has also put forwarded an ambitious target of increasing the economic growth rate formulating a ‘transitional economic policy', along with the constitution-drafting process. To reach the goal, the president said, the government would stress on judicious distribution system, public-private partnership and infrastructure development.

Likewise, the government programmes include running peace campaign across the nation to maintain political stability for the economic transformation. For this, the coordination among the parties will be further expanded to lessen reduce differences among the parties in local level.

The president further announced, "As per the provisions of the Comprehensive Peace Accord (CPA), a Truth and Reconciliation Commission and another commission for the search of the disappeared and publicising their whereabouts will be formed soon."

Regarding the foreign policy, the government will emphasise on the ties with neighbouring countries—India and China, and with other countries, the economic diplomacy will be the focal point.

In addition, the government will stress on other domestic issues as usual. The government will arrange a distribution system for the easy and smooth supply of daily essential commodities.

Similarly, the programmes emphasise on the institutional development of the federal democratic republic, inviting the armed groups active in the Terai for talks, implementation of the agreements made by the government with various groups in the past and sorting out the issue of PLA integration and rehabilitation within six months.

President Yadav also announced that the salaries of the government employees will be increased.

The government will now announce the fiscal budget to implement the programmes soon.
Source: eKantipur
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Nepal Gharelu Tatha Sana Udhyog Bikash Bank's Special General Meeting

Nepal Gharelu Tatha Sana Udhyog Bikash Bank Ltd. has announced its special general meeting to be held on 28th September 2008 (2065 Ashwin 12).
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Subhechha Bikash Bank's Share Slip Distribution

Subhechha Bikash Bank Ltd. is distributing its share slip from 10th September 2008 (2065 Bhadra 25).
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ADB assures grant increment to Nepal

A top Asian Development Bank (ADB) official has assured that the bank is committed to scaling up its grant allocation to Nepal in the coming years to help the country meet its development needs in the post-conflict transition period.

“Such assistance will largely depend on the country’s performance, mainly in areas like macroeconomic stability, governance and portfolio performance,” a press statement issued by the bank on Monday quoted Kunio Senga, Director General of ADB’s South Asia Department, as saying at the end of his 4-day visit to Nepal.

According to the press statement, Senga congratulated Prime Minister Pushpa Kamal Dahal, Finance Minister Dr Baburam Bhattarai, other cabinet members of the new government and the Vice-Chairman of National Planning Commission for their new appointments.

During his meetings with Dahal and other senior government officials, Senga stressed the importance of staying on course with economic reforms to address poverty and other development challenges as well as achieve higher economic growth crucial for sustained peace and stability. He also expressed deep sorrow and sympathy over the loss of lives and property caused by severe flooding of the Koshi River in eastern Nepal.

Senga also introduced ADB’s new Country Director for Nepal, Barry J Hitchcock to the Government, media, and other development partners. Hitchcock assumed office in Nepal from the first week of September.
Source: eKantipur
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Trade deficit widens as export dips, import surges

Due to frequent strikes and bandhs plaguing the manufacturing sector, trade deficit has been widening over the recent months. Trade deficit with India, Nepal's largest trade partner, is double that of with the rest of other countries. According to Nepal Rastra Bank's yearly data, in 2007-08 the merchandise trade deficit widened by 22.2 per cent to reach Rs 165.3 billion compared to an increase of 19.2 per cent the previous year. The ratio of merchandise trade deficit to GDP was 20 per cent in 2007-08.

"Of the total, trade deficit with India amounted to Rs 105.9 billion and the remaining deficit of Rs 59.4 billion with other countries," said the central bank's yearly report.

Significant growth in imports relative to a marginal rise in exports widened the merchandise trade deficit. Total exports went up by 2.4 per cent in comparison to a decline by 1.4 per cent the previous year. Of the total exports, those to India dropped by 7.4 per cent in contrast to a rise by 2.5 per cent last fiscal year. "Exports to other countries, however, soared by 25.5 per cent as against a decline of 9.6 per cent in 2006-07," revealed the report.

The dismal performance in exports to India was due to decline in the export of vegetable ghee, textiles, chemicals, resin and readymade garments. On the other hand, exports to other countries rose primarily because of increase in export of pulses, Nepali paper and paper products, herbs, wheat, noodles, ceramic products, electric wire and stationery.

Total imports increased by 16.1 per cent in 2007-08 compared to a rise of 12 per cent the previous year. While imports from India accelerated by 24.7 per cent compared to a growth of 8.1 per cent in 2006-07, imports from other countries rose by just 3.5 per cent compared to a rise of 18.3 per cent the previous fiscal year.

As a result, total trade deficit expanded by 22.2 per cent in comparison to its growth of 19.2 per cent a year earlier.

Import of petroleum products, MS billet, vehicles and spare parts, hot rolled sheet in coils and cold rolled sheet in coils from India as well as an increase in the import of telecommunication equipment and parts, other machinery and parts, transport equipment and parts, video television and parts and polythene granules from other countries have contributed to the upsurge in total imports, said the central bank's report.

Nepali team back from US:
KATHMANDU: US officials have urged Nepali entrepreneurs to work things out at the political level for easy access of Nepali readymade garments' to the US market. "Our team, led by chief secretary Bhojraj Ghimire, has been advised by US officials to talk at the ministerial level to solve the problems of the Nepali readymade garments sector," Prashant Pokharel, president of the Garments Association of Nepal (GAN) said adding that some of the African countries, Afghanistan, Pakistan and some Carribean countries are getting customs free access to the US market on bilateral agreements. There is no bilateral trade agreement between Nepal and the US. "The isssue should be taken up with the US during Prime Minister Pushpa Kamal Dahal Prachanda's visit to the US next week," said Pokharel. The US is the largest market for Nepali readymade garments.
Source: THT
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Budget will please all, claims FM Bhattarai

Finance Minister Dr Baburam Bhattarai has said even as the state coffer does not have much money in it the government is trying to come up with a budget that will please all.

Speaking at a programme in his home district Gorkha on Monday, the Finance Minister said the budget would focus on result-oriented development and economic programmes for rural people so it gives them a sense of change the country is bracing for.

The budget will provide relief aid to the families of martyrs and the disappeared people and will guarantee free education to Dalits and girls.

The budget will be presented in about a week, he said.
Source: Nepalnews
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Sunrise in Dhangadi

Sunrise Bank Ltd. has extended its eighth branch in Dhangadi of far western region. Chairman of the Bank Mr. Tola Ram Dugar inaugurated the branch on 8th September 2008. The new branch of the bank plans to invest in the hydropower as well as tourism sector of the area. The recent branch of the bank has prioritized infrastructure development as well investment in small and medium scale industries. Mr. Jayas Ram Yadav is the Branch Manager of Dhangadi Branch. In the near future Sunrise is opening its branch in Birthamod of Jhapa.
Source: Jamb News Service
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Nepal SBI Bank in Baglung

Nepal SBI Bank Ltd. has opened its new branch in Baglung. It is the 16th branch of the bank. SBi is providing services from 21 branches including extension counters. The bank aims to extend 16 more branches in different parts of the country within a year.
Source:
Jamb News Service
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Om Finance issuing Right Share

Om Finance Ltd. is issuing its right shares from today.
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Diprox Development Bank posts profit

Diprox Development Bank Ltd. has posted Rs. 13.612 million net profit for the 4th quarter of the fiscal year 2064/65 which is 115% more than the corresponding previous quarter.
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Premier Finance Co's Special General Meeting

Premier Finance Co. Ltd. announces its special general meeting to be held on 24th September 2008 (2065 Ashwin 8).
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Subhekchhya's shares allotted

ACE Development Bank Ltd allotted ordinary shares of Subhekchhya Development Bank (SDB) on the 67th day of the closing of its IPO. SDB's 1,20,000-unit shares with face value of Rs 100 each were allotted to 6,672 people. A total of 68,956 persons, including 12 employees had applied for the 80,83,000-unit shares of the bank.
Source: THT
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Give security top priority : Kush Kumar Joshi

Kush Kumar Joshi, 49, is president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the apex business body of Nepal. A diploma holder in electrical engineering from the UK, he is also managing director of Nepal Ekarat Engineering Company -- the country's first joint venture company -- and director of Nepal Wood Preservatives Industries and Shara Global Trade Pvt Ltd. A trained manager and skillful businessman, he is also a genuine leader who has taken charge of the FNCCI promising reforms and giving new impetus to the private sector. Prem Khanal of The Kathmandu Post caught up with Joshi to talk about the FNCCI's latest undertakings and his views on the ways the economic agenda should be treated as Nepal goes through a political transition. Excerpts:

What major activities has the FNCCI undertaken recently?

Following the major changes on the political front, the whole focus of the country has now shifted to the economic agenda. So our push at this juncture has been to put the economy on a priority footing during the constitution making process itself. We have urged the government to end the confusion in the current policies and come up with a common minimum economic program with clear insight on how the state should drive the economy in the medium- and long-term. Industrial and physical insecurity has hindered the private sector. We have called upon the government to end that immediately. Unfair practices like syndicates and cartels, and disruptions like labor stirs and highway bandas should be ended forever. We are presently giving inputs for the formulation of the new budget. For a longer term, we are also formulating the private sector's 20-year economic vision and development plan.

What's in the FNCCI's 20-year vision document?

Broadly speaking, we have discussed all the prerequisites of doing business in the vision document. We have mentioned the areas where we have a competitive edge and special potential. It also makes specific recommendations for fine-tuning the state's economy policy. While identifying the areas in which the private sector will readily work, we have also suggested the actions the government should take. It lays down areas where the government can make things better by just enforcing the existing laws. It also lists the areas where the government will have to amend the laws and policies besides formulating new ones. The vision document is still in the discussion phase. We will hand it over to the government at an appropriate time.

What major problems is the private sector facing now? What are your suggestions to the government to address them?

Insecurity and closure of highways is the foremost problem that we feel the government must address. Just stepping up security and creating an industrial security force will help attain that. We urge the government to incorporate these measures in the new budget. The government must also express a strong commitment to reform labor laws -- another pressing issue of the present time. The budget must also reaffirm the government's commitment to end unfair practices like syndicates and cartels. This problem can be solved by merely enforcing the existing laws.

We also want the government to enforce multiple VAT rates. There must be an improvement in the tax system as well. All forms of taxes including scrap tax that raise the cost of production must be done away with. The country's export sector is in tatters. We want the government to waive export duties and also establish special economic zones to support the export sector. Also, the government must address the long-running energy crisis. Without energy, we cannot expect the economy to function normally, forget faster growth.

What should be done to reverse the downturn in the export sector?

We cannot promote exports without developing export promotion zones (EPZ). We must first develop export oriented units (EOUs). Only those industries that export at least 70 percent of their production can be termed EOUs. We must shift the EOUs into the EPZ and provide them duty and tax exemptions. The government should form flexible labor laws for the EPZ, and its tax policy should also be different than for other industries. This cannot be done overnight, but we must start working in this direction now if we are to revive our exports.

How confident are you about the new government's policy being private sector-friendly?

It must be. There is no other way. The government's policy and new constitution should reaffirm the right to property. It must support private sector growth and facilitate corporate sector development. When speaking about economic transformation, the political parties, including the CPN-Maoist, have repeatedly mentioned liberal economic policies and have set targets much higher than what we ourselves have aimed at. They have pinned their hopes on hydropower, trade, export, industrialization of agriculture and tourism for establishing a new Nepal. So, based on what they have been saying so far, I am optimistic the new government's economic package will be private sector-friendly.
Source: eKantipur
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NEPSE resumes Premier Securities

Nepal Stock Exhchange has resumed the Brokerage Firm, Premier Securities Ltd. (Broker No. 32,), Putalisadak, Kathmandu for Trading after threatning the firm to settle the remaining amount immediately and committed not to repeat such mistake again.

Nepal Stock Exchange had suspended the firm 5 days before. During transaction, instead of depositing Rs. 1,053,000 in bank account as indicated in the floor sheet, the broker presented the voucher of Rs. 150,000 only. The exchange had stopped the broker to carry out any transactions and at the same time further action is taken against breaching the rule.
Source: Jamb News Service
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Nepal Aawas Bikas Beeta Company Limited: Only five days to subscribe rights issue

The issued 1:1 ratio of rights share of Nepal Aawas Bikas Beeta Company Limited is open for investors till Bhadra 27, 2065.
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Sagarmatha Merchant Bank to refunds money

Sagarmatha Merchant Banking and Finance Company has announced to refund the collected money of its initial public offering.
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New HBL savings schemes on platter

Himalayan Bank Ltd (HBL) has brought three new schemes — Bishesh Bachat Khata, Recurring Savings Account and Jumbo Term Deposit Account. HBL chief executive officer Ashok Shumsher Rana today said the new schemes had been launched to cater to the needs of customers from every strata of society. CEO Rana said the Bishesh Bachat Khata is targeted at the under-aged, adults above 50 years of age and people with physical disabilities. The minimum balance required for the account is Rs 2,000 and it will attract 0.5 per cent more interest than in the regular accounts. A customer can get free debit card and an accident insurance of Rs 5 lakh maximum.

The Recurring Savings Account has a maturity period of three years where deposits can be made on instalment basis. The interest rate it earns is six per cent annual. The account also provides the facility of accident insurance.

Jumbo Term Deposit Acount — a term deposit — provides huge outcomes. One can get lump sum money and the scheme attracts 6.5 to seven per cent interest rate.

All these accounts can be opened at any branch of HBL that has during the fiscal year 2007-08 collected a total deposit of Rs 31.93 billion. HBL has also loaned Rs 20.17 billion, while the total operating profit of the bank in the fiscal year 2007-08 was Rs 1.05 billion.
Source: THT
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ICFC Bittiya Sanstha Ltd's Right Share certificate Distribution

ICFC Bittiya Sanstha Ltd. is distributing its right share certificate from 7th September 2008 (2065 Bhadra 22).
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NABIL's Upcoming 24th AGM

Nabil Bank Ltd. has declared its forthcoming 24th annual general meeting to be held on 29th September 2008 (2065 Ashwin 13).
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SBL's in Baneshwor

Siddhartha Bank Ltd. has inaugurated its tenth branch in Old Baneshwor of Kathmandu. Chairman of the bank and board of directors Chiranji Lal Agrawal inaugurated the new branch. SBL has come up with variety of loan and deposit schemes. Bank is providing industrial, business, home, automobile and personal loan to the customers. While, Siddhartha Mega saving, Siddhartha Balbachat, Siddhartha Naribachat, Siddhartha Bachat and Siddhartha Bises Bachat are some of its attractive deposit schemes.
Source: Jamb News Service
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Broker No. 32 Suspended

Nepal Stock Exchange suspended Broker No. 32 from the brokerage firm "Premier Securities Pvt. Ltd." was by. During transaction, instead of depositing Rs. 1,053,000 in bank account as indicated in the floor sheet, the broker presented the voucher of Rs. 150,000 only. The exchange has stopped the broker to carry out any transactions and at the same time further action is taken against breaching the rule.
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Everest Bank to give bonus share and dividend

Everest Bank Ltd. has decided to give 30% bonus share and 20% cash dividend to its share holders. The BOD meeting held on 3rd September 2008 decided on the matter. The bank earned Rs. 450.123 million net profit in the fiscal year 2064/65 which is 52% more than the previous year. Everest Bank Limited started its operations in 1994 with a view and objective of extending professionalized and efficient banking services to various segments of the society. EBL joined hands with Punjab National Bank (PNB), India as its joint venture partner in 1997. It has 27 branches located in various part of the country till date.
Source: Jamb News Service
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Checking 12.1 per cent inflation major challenge

It will be a Herculian task for the present government that is preparing the budget to crack the whip on the inflation that is rising by leaps and bounds. The rise is attributed to rising food prices and hike in petroleum products' prices. However, the GDP has grown by a satisfactory 5.6 per cent growth due to a good monsson. The budget deficit — on a cash basis — has also increased by 13 per cent to Rs 21.20 billion.

The year-on-year (y-o-y) inflation climbed to 12.1 per cent in mid-July 2008 from 5.1 per cent in mid-July 2007, according to current macroeconomic situation based on the data of 2007-08 published by Nepal Rastra Bank (NRB).

The average annual consumer inflation rose to 7.7 per cent in 2007-08 from 6.4 per cent in 2006-07. Rise in food prices and hike in prices of petroleum products were the driving factors for inflation in 2007-08, states the report. The annual average price index of food and beverages group rose by 10.1 per cent in 2007-08 compared to an increase of 7.2 per cent last year. Of the items under food and beverages group, price indices of oil and ghee, grains, cereal products and pulses witnessed a growth of 20.9, 14.6 and 14.2 per cent respectively in the review period compared to an increase of 6.7, 6.4 and 17 per cent respectively the previous year.

Region-wise, the annual average yearly price level in Kathmandu Valley, the Hills and the Tarai rose by 7.2, 7.4 and 8.1 per cent respectively in 2007-08. The respective rates were 6.1, six and 6.7 per cent the previous year. A relatively higher price level was observed in the Tarai region mainly on account of the effect of sporadic unrest there in the review year. Average core inflation rose by 6.1 per cent in 2007-08 from six per cent the previous year, according to the central bank. The balance of payments (BoP) recorded a surplus of Rs 29.7 billion compared to a BoP surplus of Rs 5.9 billion in 2006-07 and the budget deficit — on a cash basis — increased by 13 per cent to Rs 21.20 billion.

Preliminary estimates of national income accounts recently released by Central Bureau of Statistics (CBS) have placed real GDP growth in basic prices at 5.6 per cent and in producers' prices at 4.7 per cent in 2007-08 compared to respective growths of 2.6 and 3.2 per cent the preceding year. In 2007-08, agriculture and non-agriculture sectors are reported to have grown by 5.7 per cent and 5.6 per cent respectively. These sectors witnessed a growth of one per cent and 4.1 per cent respectively the previous year, states the report.

Paddy production surged by a whopping 16.8 per cent in 2007-08 mainly due to a favourable monsoon. Over the past three years, paddy production had experienced a continuous decline. Maize, wheat and potato production also surged by 3.2 per cent, 3.8 per cent and 5.7 per cent respectively in the review year.

Consequently, the index of food grains and other crops increased by 7.3 per cent contrary to the 2.7 per cent decline last year. Production indices of vegetables and nurseries, fruits and spices, livestock and forestry groups have accelerated. However, manufacturing production index declined by 1.4 per cent in 2007-08 compared to a growth of 2.6 per cent in the previous year. The decline was on account of a substantial fall in the production of vegetable ghee and oil, plastic products, garment and domestic metal products.
Source: THT
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Bank deposits surge to 426b

Total deposits held by the country's 25 commercial banks recorded an astonishing Rs 100 billion (around US$ 1.43 billion) rise in fiscal year 2007/08. Deposits stand at Rs 426 billion (US$ 6 billion), thanks to continued strong growth in remittance income.

Growth in deposits recorded at almost 31 percent was the highest in Nepal's recent financial history. The total amount of deposits equals more than half the national economy, which was worth Rs 720 billion (US$ 10.5 billion) in mid-July 2008.

In addition to the whopping increment in remittance, Dr Shankar Sharma, former vice chairman of the National Planning Commission, says the banking system has started receiving returns on the investment the government made in rural areas, helping to inflate the size of bank deposits.

Nepal received a hefty Rs 142.7 billion (around US$ 2.03 billion) worth of remittance during the last fiscal year, which was equal to 20 percent of the total size of its national economy. Though Nepal has officially permitted 1.4 million people to work overseas, it is estimated that there are altogether two million migrant workers sending remittances to their loved ones back home.

Nepal Rastra Bank's annual report reveals that the troubled state-owned Rastriya Banijya Bank (RBB) continues to remain the largest bank in terms of deposit mobilization, followed by semi-public Nepal Bank Limited (NBL) and privately-owned Nepal Investment Bank (NIB).

According to available figures, RBB holds deposits worth Rs 58 billion, almost 14 percent of the total deposits, while NBL and NIB hold Rs 41.4 billion and Rs 34.5 billion respectively.

In terms of instruments of deposit, savings accounts, which are popular among the middle class, continued to absorb the largest chunk with Rs 211.4 billion -- around half of total deposits -- while fixed deposits accounted for Rs 88.8 billion.

Similarly, extension of loans and investments also witnessed a massive rise of 34 percent to Rs 374 billion (around US$ 5.37 billion) during the last fiscal year. Loan extensions to the private sector, which absorbs 77 percent of total banking loans, grew by an impressive 31 percent.

As a result of substantial increment in deposit mobilization compared to the flow of loans, the total liquid assets of commercial banks ballooned to a record Rs 66.8 billion, whereas the figure last year was Rs 43.3 billion.
Source: eKantipur
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Remittance flow shoots up 43pc to Rs 143b

Nepal saw a huge 42.5 percent rise in workers' remittances in 2007/08, as more Nepalis went overseas to work amid shrinking employment opportunities at home.

According to Nepal Rastra Bank's (NRB) annual report, the country's migrant workforce sent back Rs 142.7 billion during the last fiscal year. As swelling remittances boosted consumption, Nepal's imports grew 16.1 percent in 2007/08, overtaking the figure for the previous year.

"In total, Nepal's imports grew by more than Rs 30 billion and touched Rs 226 billion in the last fiscal year," says the NRB report released Friday. Of the total imports, purchases from India expanded by 24.7 percent, while imports from other countries rose by 3.5 percent.

The country's exports, however, continued to flounder as a result of internal and external problems. Consequently, total exports inched up a mere 2.4 percent to Rs 60.78 billion. Moreover, exports to India declined by 7.4 percent in 2007/08. Exports to other countries increased by 25.5 percent.

Higher imports and slowed exports widened the country's trade deficit to Rs 165 billion. The trade deficit with India alone amounted to Rs 105.9 billion.

A downturn in sales and restrictions imposed by India resulted in the production of vegetable ghee and oil, plastic products, garments and domestic metal products falling during the year.

"That dragged down the country's manufacturing production index by 1.4 percent in 2007/08, compared to a growth of 2.6 percent in the previous year," says the report.

The report added that prices of consumable goods and services soared 12.1 percent in mid-July 2008 compared to mid-July 2007. The average annual consumer inflation remained at 7.7 percent.

Among major products, oil and ghee prices went up by 21 percent, grain and cereal by about 15 percent and pulses by 14 percent. The prices of rice and rice products rose by 14 percent. The annual average prices of non-food items and services increased by 5.1 percent in 2007/08.

With the improved law and order situation in the country, Nepal received Rs 9.8 billion worth of foreign direct investment commitments in 2007/08. Increased remittances also expanded the gross foreign exchange reserves to Rs 212.6 billion in mid-July 2008.

Between mid-July 2007 and 2008, the Nepali currency depreciated by 5.33 percent vis-à-vis the US dollar. A year before, it had appreciated by 14.26 percent, according to the report.

Moreover, in 2007/08, NRB purchased Indian currency worth Rs 70.6 billion by selling US$ 1.37 billion, as the Indian rupee ran short in the market due to a widening current account deficit with India and the higher amount of payments made to the Indian Oil Corporation.
Source: eKantipur
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Sagarmatha Merchant Banking & Finance's Share Allotment

Shares of Sagarmatha Merchant Banking & Finance Ltd. has been allotted. You can access the allotment information here
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Lumbini Bank Decides To Increase Capital

Lumbini Bank Ltd. has decided to increase its paid up capital by issuing 10:3 right share.
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Prime Bank's Upcoming 1st AGM

Prime Bank Ltd. has announced its 1st annual general meeting to be held on 26th September 2008 (2065 Ashoj 10).
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Pathivara Bikash Bank's Forthcoming 1st AGM

Pathivara Bikash Bank Ltd. has announced its 1st annual general meeting to be held on 27th September 2008 (2065 Ashoj 11).
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ShubhaLaxmi Finance's Upcoming 1st AGM

ShubhaLaxmi Finance Ltd. has announced its 1st annual general meeting to be held on 26th September 2008 (2065 Ashwin 10).
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Rastriya Banijya Bank's new ATM

Rastriya Banijya Bank (RBB) has opened its ATM service at Balaju. According to a press statement, the bank has ATM counters at Singhadurbar, Teku, Bir Hospital, Thamel, Maharajgunj, Baneshwor and Lalitpur. It plans to provide ATM services at 30 more places including Jorpati, Nepal Airlines Corporation, Dharmapath and in Butwal and Pokhara within this fiscal year.
Source:THT
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Right shares of ACEDBL listed

960000 right shares of Ace Developmet Bank Ltd. issued on 25th May 2008 has been listed on the stock exchange today.
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Insurance companies to be more transparent

By: Kuber Chalise
Sector wise Distribution of the market as of 3rd Sept 2008

Beema Samiti, the regulatory authority of insurance companies, is doing homework to make insurance companies more transparent. "We are working to make them publish their quarterly reports to maintain transparency and inform small investors about the companies' financial health," said Devendra Pratap Shah, chairman of the regulatory authority that has the primary duty to protect policy holders, adding that "protecting the interest of small investors is also our duty."

At present, the insurance companies submit their reports yearly to the board but do not need to publish that in the newspapers. "We have just started a new regulation of submitting detailed reports," Shah said adding that earlier disclosure system was not very good.

The capital market is financial institutions-dominated because they are transparent due to the Nepal Rastra Bank (NRB) rule. According to the central bank rule, financial institutions must publish their quarterly accounts regularly. Failure to do so will invite penalty. The insurance company group comes third in terms of trading of their shares at the Nepal Stock Exchange (Nepse) after financial institutions ¿ Commercial banks, development banks and finance companies ¿ and hydropower groups.

Currently, 17 insurance companies are listed under the insurance group that has a total of 17,187,384-unit shares worth Rs 1,718,738,400, according to Nepse. They have earned Rs 3.23 billion premium collectively in the fiscal year 2005-06 and the total collection of premium might be above Rs 4.5 billion at the end of 2007-08, but that has yet to be finalised.

Apart from these listed insurance companies, new companies like Prime Life Insurance (PLI), Gurans Life Insurance (GLI), Surya Life Insurance (SLI) and Asian Life Insurance (ALI) are floating 1.1 million-unit shares worth Rs 110 million each as life insurance companies need to have Rs 360 million for life insurance while non-life insurance companies need to have Rs 100 million, according to the new regulation. The paid up and issue capital of all these insurance companies is equal to Rs 360 million, of which Rs 250 million belongs to promoters. "Within a year of its operation, Prime Life Insurance will issue 1.1 million-unit shares worth Rs 110 million," said Laxman Rizal, chief executive officer (CEO) of Prime Life Insurance.

New players' entry in the insurance group ensures market expansion and more supply of shares that will help stabilise the capital market. Buying shares of insurance companies is a more secure venture than any other companies as the insurance business itself is a secure one. Insurance is a tool of the financial sector that guarantees a insurer of their future.

At present, less than five per cent of the total Nepali populace is reaping the benefits of insurance. Even property holdings of national importance are not insured. The life insurance sector's contribution to the GDP is only two per cent and it has generated around 20,000 direct and indirect jobs. In Nepal, most people do not know insurance is a necessity and it is not at the top of their priority list. However, the fact remains that insurance is a valuable tool to protect a person's family from unforeseen events that can severely damage their financial futures. Sadly, not many people pay enough attention to this fact.
Source: THT
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Pre-budget discussion : Govt to try to entice more investment

The Maoist-led government is gearing up to announce a budget that will attract more investment, both domestic and foreign, contrary to popular belief that the CPN-Maoist policy will deter investors.

"Have confidence in us, unlike what others are expecting from us we will bring a budget that will attract more investment," Finance Minister Dr Baburam Bhattarai said today while addressing entrepreneurs at a Pre-budget discussion programme organised by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) here.

"We know massive investment in physical and social infrascture is the need of the hour," Dr Bhattarai said adding that the Maoists-led government would create an investment-friendly environment. "Due to political transition — we call it a transitional economic model — we may not be able to provide you all what we want to," he said, trying to clarify the type of economic model his party would foster. "We will encourage the private sector, and the public-private partnership (PPP) will be our main policy, followed by flexible Labour Act and practical tax rates," Dr Bhattarai said. Reiterating the CPN-Maoist promise of encouraging national industrial capitalism, he said the Maoists wanted a stable government and sound policies that entrepreneurs have asked for. He said that efforts would be made to maintain the maximum level of transparency.

FNCCI Tax & Revenue Committee president Pradeep Man Vaidya urged the Finance Minister to bring a budget that would check growing inflation, increase productivity and generate more employment. Mentioning the hurdles in doing business in Nepal, Vaidya said, "The government needs to bring short-term and long-term economic vision, attract more tourists, commercialise agriculture, promote exports and implement multi-VAT for a prosperous and new Nepal." Dr Bhattarai assured Vaidya that the the suggestions would be incorporated in the budget.

FNCCI president Kush Kumar Joshi, vice-president Bhaskar Raj Raj Karnikar and other entrepreneurs also offered suggestions on various policy-related issues.
Source: THT
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Govt to take up transformative economic policies: FM Bhattarai

Minister for Finance Dr Baburam Bhattarai on Wednesday said that the government will take up transformative economic policies. Rather than analysing polices based on any ‘isms' Dr Bhattarai said, he preferred calling it a ‘transformative economic policy' reflecting the period of transformation the country is undergoing.

Speaking at the pre-budget discussion in the capital today, the finance minister said the government bring in the budget in a way that it will encourage the private sector.

"Many people fear that the Maoist budget would discourage the investment. But you will get to see more investment attracted." he said and added, "Even foreign investment will be attracted."

Saying that the government will follow the model of public private partnership, Dr Bhattarai added, "If any problems arise during the transformation period, only the Maoists cannot be blamed."

"There is problem in mobilisation rather than in capital itself," he said. "The government will simplify it."

Saying that there will be no obscurity in policy and the government will be stable, he assured the business men that while determining the tax rates the issue will of industrial security will be taken into consideration.

In the programme, business entrepreneurs said that the professional environment has not been created because of the instable government and policy, corruption, lack of infrastructure, no access to capital and lack of transparency in tax.
Source: eKantipur
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