Government has decided not to sell the unsubscribed shares of Nepal Telecom Ltd. at present. The equity market is constantly declining and the NTC's shares are being traded at its lowest levels. Hence the finance ministry has postponed the remaining shares sale and will be deciding on the matter only after the market warms up. The shares of NTC were decided to be sold in premium at Rs. 600, but some investors even paid Rs. 2500 for a single share. Altogether, 8200000 shares got enlistment in Nepal Stock exchange. Within a short span of its trading history, NTC's share discovered new height of Rs. 1481 on 1st Sep 2008 but started to plunge down to make a lowest life-time low of Rs. 540 on 25th Nov 2008. With regard to 10 percent share of Nepal Telecom set aside for sale, Dr. Bhattarai in his budget speech stated that, the remaining share will be sold through secondary market. It seems like the investors need to wait a bit long for getting hold on the outstanding shares.
Source: Jamb News Service
Read More
|
| share with your friends |
Friday, December 12, 2008
Solution in sight to Nefisco-investor row
The lingering dispute between Nepal Finance Ltd (Nefisco) and investors is close to being resolved. Nefisco has agreed to give ordinary shares to the investors who had bought promoters' shares from the company which sold them the shares allegedly without informing them of their status. Anoj Agrawal, Broker No 6 - who had bought 3,500-unit of promoters' shares of Lumbini Bank Ltd - said Nefisco had finally agreed to give investors ‘ordinary shares' instead of the promoters' shares that it had sold them. Nefisco sold promoters' shares of Lumbini Bank to the investors as ordinary shares without declaring the status of those shares. Investors had since been urging the finance company to either give them the share certificates that they had bought or refund the money.
However, after several meetings between Nefisco and the shareholders' representative, it was decided to give investors ordinary shares. Nefisco chief executive officer (CEO) Sudhindra Lal Pradhan said that his company had finally agreed to give 3,500-units of ordinary shares instead of promoters' shares. "We had been holding dialogue with Lumbini Bank and the investors for quite some time," he said adding that Nefisco had agreed to the investors' demands.
Though promoters' shares can be sold and bought in the secondary market just like ordinary shares, they have separate status and pricing mechanism that are lower than the market price. Nefisco also came under fire for not having followed the central bank's directives. On August 13, Securities Board of Nepal (Sebon) suspended the merchant banking licence of Nefisco. It was the first time that Sebon took such stern action after it received a series of complaints from investors against the finance company.
Invoking the Securities Act-2063, Clause 58 (2)(D) and Clause 60 (C), Sebon suspended Nefisco's merchant banking licence and barred it from operating as a merchant banker due to its alleged ‘fraudulent' transaction of promoters' shares. Forbidding Nefisco to act as merchant banker, issue manager, underwriter or share registrar, Sebon said it took the step to safeguard the investors' interest after receiving a slew of complaints against Nefisco.
The investors bought the shares thinking these to be ordinary shares. After learning of the status of these shares, they accused Nefisco of duping them. Usually, the brokers for the seller knows the status of the shares before they are traded but in this case they ignored it when the transaction took place. It took a marathon round of investors' meetings with Nefisco, Sebon, Nepse and Lumbini Bank, for the case to get solved. The blame game continued between Nefisco and brokers for long.
However, this has not been the only case of sale of promoters' shares to investors. Some other other financial institutions like Kathmandu Finance Ltd had also sold its promoters' shares to the public without declaring their status.
Source:
The Himalayan Times
Read More
However, after several meetings between Nefisco and the shareholders' representative, it was decided to give investors ordinary shares. Nefisco chief executive officer (CEO) Sudhindra Lal Pradhan said that his company had finally agreed to give 3,500-units of ordinary shares instead of promoters' shares. "We had been holding dialogue with Lumbini Bank and the investors for quite some time," he said adding that Nefisco had agreed to the investors' demands.
Though promoters' shares can be sold and bought in the secondary market just like ordinary shares, they have separate status and pricing mechanism that are lower than the market price. Nefisco also came under fire for not having followed the central bank's directives. On August 13, Securities Board of Nepal (Sebon) suspended the merchant banking licence of Nefisco. It was the first time that Sebon took such stern action after it received a series of complaints from investors against the finance company.
Invoking the Securities Act-2063, Clause 58 (2)(D) and Clause 60 (C), Sebon suspended Nefisco's merchant banking licence and barred it from operating as a merchant banker due to its alleged ‘fraudulent' transaction of promoters' shares. Forbidding Nefisco to act as merchant banker, issue manager, underwriter or share registrar, Sebon said it took the step to safeguard the investors' interest after receiving a slew of complaints against Nefisco.
The investors bought the shares thinking these to be ordinary shares. After learning of the status of these shares, they accused Nefisco of duping them. Usually, the brokers for the seller knows the status of the shares before they are traded but in this case they ignored it when the transaction took place. It took a marathon round of investors' meetings with Nefisco, Sebon, Nepse and Lumbini Bank, for the case to get solved. The blame game continued between Nefisco and brokers for long.
However, this has not been the only case of sale of promoters' shares to investors. Some other other financial institutions like Kathmandu Finance Ltd had also sold its promoters' shares to the public without declaring their status.
Source:
The Himalayan Times
Read More
PGBB to become Purbanchal Bank
Purbanchal Grameen Bikash Bank Ltd. (PGBB) will soon be upgraded to a category 'A' financial institution. Talking to the Post, PGBB Director Shyam Dev Yogi said the new commercial bank will be called Purbanchal Bank. The bank, which was established to provide financial services to the rural sector, provides loans between Rs. 10,000 to Rs. 60,000 to villagers in the eastern region without collateral. It has been operating in Morang, Sunsari, Jhapa, Siraha, and Saptari since 1992. PGBB had a 66 percent capital investment by Nepal Rastra Bank (NRB), the central bank of the country, at the time of establishment. It was privatised around two years ago.
Yogi said PGBB had started preparations to upgrade to a commercial bank after fulfilling the criterion set by NRB. Of the required paid-up capital of Rs. 2 billion, promoters will own 68.2 percent of the shares while the remaining will be offered to the public and bank employees.
The bank has so far lent Rs. 7.287 billion to 53,000 villagers, and recovered Rs. 6.499 billion. Yogi also said the bank's total investment amounts Rs. 788.36 million. Currently this bank is allowed to invest Rs. 800 million. He also said the bank had earned a net profit of Rs. 8.294 million in first quarter of the current fiscal year.
Source:
Ekantipur
Read More
Yogi said PGBB had started preparations to upgrade to a commercial bank after fulfilling the criterion set by NRB. Of the required paid-up capital of Rs. 2 billion, promoters will own 68.2 percent of the shares while the remaining will be offered to the public and bank employees.
The bank has so far lent Rs. 7.287 billion to 53,000 villagers, and recovered Rs. 6.499 billion. Yogi also said the bank's total investment amounts Rs. 788.36 million. Currently this bank is allowed to invest Rs. 800 million. He also said the bank had earned a net profit of Rs. 8.294 million in first quarter of the current fiscal year.
Source:
Ekantipur
Read More
Govt spending falls, revenue up
The total government spending has decreased by 2.4 per cent to Rs 29.3 billion in the first three months of fiscal year 2008-09, compared to an increase of 53.7 percent in the corresponding period last fiscal year. The reduction of such spending was due to a decline in recurrent as well as capital expenditure, according to the central bank.
In the first quarter of this fiscal year, recurrent expenditure has decreased by 13.2 per cent to Rs 18.5 billion. In the corresponding period of the previous fiscal year, recurrent expenditure had increased by 35.6 per cent. A significant amount was spent for the preparation of the Constitution Assembly (CA) election in the previous year, there was no occurrence of such expenditure in the current fiscal year pulling the account for such a decline in recurrent expenditure in the review period.
The principal repayment expenditure has also increased by 20.8 per cent to Rs 4.2 billion mainly on account of the payment of treasury bills amounting to Rs 2.8 billion, stated a report of the Nepal Rastra Bank (NRB).
However, revenue mobilisation has seen a encouraging increase in the first quarter. It grew by 16 per cent to Rs 22.3 billion compared to an increase of 18.8 per cent in the corresponding period last fiscal year.
In the review period, income tax, VAT revenue and registration fee recorded a higher growth whereas customs, excise and vehicle tax revenue recorded a lower growth compared to that of the corresponding period of the previous year. Moreover, non-tax revenue witnessed a decline of 59.7 per cent. The revenue will increase more in the days to come as the government has come heavily on the open sale of liquors and started providing licence keeping track on its sale.
The government received foreign cash loans of Rs 936.7 million and foreign cash grants of Rs 2.5 billion in the first three months of 2008-09. The government had received foreign cash loans of Rs 845.7 million and foreign cash grants of Rs 1.2 billion in the corresponding period of the previous year. The government did not mobilize any domestic borrowing in the first three months of this fiscal year, stated the report.
Source:
The Himalayan Times
Read More
In the first quarter of this fiscal year, recurrent expenditure has decreased by 13.2 per cent to Rs 18.5 billion. In the corresponding period of the previous fiscal year, recurrent expenditure had increased by 35.6 per cent. A significant amount was spent for the preparation of the Constitution Assembly (CA) election in the previous year, there was no occurrence of such expenditure in the current fiscal year pulling the account for such a decline in recurrent expenditure in the review period.
The principal repayment expenditure has also increased by 20.8 per cent to Rs 4.2 billion mainly on account of the payment of treasury bills amounting to Rs 2.8 billion, stated a report of the Nepal Rastra Bank (NRB).
However, revenue mobilisation has seen a encouraging increase in the first quarter. It grew by 16 per cent to Rs 22.3 billion compared to an increase of 18.8 per cent in the corresponding period last fiscal year.
In the review period, income tax, VAT revenue and registration fee recorded a higher growth whereas customs, excise and vehicle tax revenue recorded a lower growth compared to that of the corresponding period of the previous year. Moreover, non-tax revenue witnessed a decline of 59.7 per cent. The revenue will increase more in the days to come as the government has come heavily on the open sale of liquors and started providing licence keeping track on its sale.
The government received foreign cash loans of Rs 936.7 million and foreign cash grants of Rs 2.5 billion in the first three months of 2008-09. The government had received foreign cash loans of Rs 845.7 million and foreign cash grants of Rs 1.2 billion in the corresponding period of the previous year. The government did not mobilize any domestic borrowing in the first three months of this fiscal year, stated the report.
Source:
The Himalayan Times
Read More
Nepse clears air over capital gain tax
Nepal Stock Exchange (Nespe) has clarified the confusion over the capital gain tax. Earlier, capital gain tax used to be calculated on the average of every closing price of a financial institution's issued bonus or rights shares. "Now onwards, capital gain tax will be calculated on the basis of base price," said Rewat Bahadur Karki, general manager of the sole secondary market.
However, the base price will be calculated after taking the average of book close price every time a company issues rights or bonus shares with the ratio of bonus and rights shares issued.
This rule is applicable to all listed companies. For companies that are not listed, the capital gain tax will be calculated according to the company registrar's office or Over the Counter (OTC) market. "The new rule will clear all confusion and help develop the secondary market," said Karki. The finance ministry gave the green signal to the new rule today.
Meanwhile, employees of the Nepse have announced a strike demanding more facilities and training. They have also published a handbill about their series of protest programmes starting from Tuesday.
Source:
Himalayan News Service
Read More
However, the base price will be calculated after taking the average of book close price every time a company issues rights or bonus shares with the ratio of bonus and rights shares issued.
This rule is applicable to all listed companies. For companies that are not listed, the capital gain tax will be calculated according to the company registrar's office or Over the Counter (OTC) market. "The new rule will clear all confusion and help develop the secondary market," said Karki. The finance ministry gave the green signal to the new rule today.
Meanwhile, employees of the Nepse have announced a strike demanding more facilities and training. They have also published a handbill about their series of protest programmes starting from Tuesday.
Source:
Himalayan News Service
Read More
Kastamandap's IPO
Kastamandap Development Bank Ltd. is issuing 960000 general shares worth Rs. 96 million. It has appointed NIDC capital market as its issue manager. Meanwhile, Shrawan Raj Bhandari, CEO of KDB and K.H Rana, CEO of NCM signed a MOU, states a press release.
Read More
Read More
BOK's Internet banking
The Bank of Kathmandu (BOK) today launched Internet banking. The service allows customers to access their accounts, transfer funds and get updates on their daily transactions. The BOK's Internet banking is a secure medium for banking, says a statement issued by the bank.
Source:
Ekantipur
Read More
Source:
Ekantipur
Read More
Enter KIST Bank Ltd
KIST Merchant Banking and Finance held its annual general meeting (AGM) on Saturday. Acting Governor of Nepal Rastra Bank, Bir Bikram Rayamajhi, inaugurated the AGM. The bank, which has been upgraded to category 'A', announced its new name KIST Bank Ltd. at the meeting. Rajendra Shakya and Kamal Prasad Gyawali have been elected director and chairman respectively for the next four years. The company opened branches in Ithari and Siddharthanagar last week and has said it plans to have 25 branches by the end of the current fiscal year.
Source:
Ekantipur
Read More
Source:
Ekantipur
Read More
LBL's 8th AGM ends
Laxmi Bank Ltd (LBL) ended its 8th annual general meeting (AGM) at Birgunj on Wednesday. According to a press statement, the bank's operating profit increased by more than 80 per cent as compared to the previous year. The AGM approved bonus shares issue of 20 per cent and rights share issue of 40 per cent after the bonus shares which will increase the paid up capital of the bank to around Rs 1.53 billion.
Source: THT
Read More
Source: THT
Read More
KIST with dozen of branches
Kist Merchant Banking & Finance Ltd. has opened its 12th branch in Bhairawaha. In recent days, KMBF has accelerated its branch extension process. With a dozen of branches and 10 ATM counters, it has reached to different corners of the country providing the local people with all of its services. At present KMBF has 800 million paid up capital while it is issuing 1:1.5 right shares currently. Moreover, recently published first quarter financial report has notched Rs.13.885 million net profit.
Source: Jamb News Service
Read More
Source: Jamb News Service
Read More
Two members of NBL team return
Nepal Rastra Bank (NRB) has called two members of the coordination team it had sent to manage Nepal Bank Ltd (NBL) some 16 months ago under Dr Binod Atreya. Acting governor of the central bank Krishna Bahadur Manandhar confirmed that the central bank has called two members — Laxmiprapanna Niraula and Numnath Poudel — of the three-member team back. "NRB will soon publish a notice asking for application for the management team including chief executive officer (CEO)," he said, adding that NBL will get a new professional management team.
More than one-and-a-half years ago, when the foreign management team — the Bank of Scotland (Ireland) Ltd, ICC Consulting — walked out, the central bank had sent a three-member team headed by Dr Binod Atreya to manage the ailing NBL, the oldest bank of the country.
Established in 1936, NBL has in seventy-two years of operations seen many highs and lows. After being declared a sick financial institution due to chronic bad loan and mismanagement, a fore-ign management has bee-n hired under financial sector reform project.
The unaudited report for the first quarter shows that Nepali management team is also capable in handling the bank. NBL has reduced its NPA to 8.33 per cent in the first quarter of this fiscal year from 13.44 per cent in the same period last fiscal year. "Despite limited freedom on financial transaction, the bank has posted more than Rs 520 million net profit by the end of the fiscal year 2007-08," Dr Atreya said, adding that at least 44 of the NBL's 99 branches are computerised.
In the recent days, the pioneer bank has to compete with new private banks that are competitive, aggressive and technologically advanced.
"NBL is ready to compete with private financial institutions. It has started providing all modern banking facilities like e-banking and SMS banking, and will soon install ATMs," the co-ordinator added. "Due to some technical glitch, we are late but within two months NBL will also have its ATMs." NBL has 10 per cent share (Rs 42 billion) in the total deposit of 25 commercial banks that stands at Rs 426 billion. However, it has a meagre share of five per cent (Rs 17 billion) in the total lending of commercial banks.
Source:
THT
Read More
More than one-and-a-half years ago, when the foreign management team — the Bank of Scotland (Ireland) Ltd, ICC Consulting — walked out, the central bank had sent a three-member team headed by Dr Binod Atreya to manage the ailing NBL, the oldest bank of the country.
Established in 1936, NBL has in seventy-two years of operations seen many highs and lows. After being declared a sick financial institution due to chronic bad loan and mismanagement, a fore-ign management has bee-n hired under financial sector reform project.
The unaudited report for the first quarter shows that Nepali management team is also capable in handling the bank. NBL has reduced its NPA to 8.33 per cent in the first quarter of this fiscal year from 13.44 per cent in the same period last fiscal year. "Despite limited freedom on financial transaction, the bank has posted more than Rs 520 million net profit by the end of the fiscal year 2007-08," Dr Atreya said, adding that at least 44 of the NBL's 99 branches are computerised.
In the recent days, the pioneer bank has to compete with new private banks that are competitive, aggressive and technologically advanced.
"NBL is ready to compete with private financial institutions. It has started providing all modern banking facilities like e-banking and SMS banking, and will soon install ATMs," the co-ordinator added. "Due to some technical glitch, we are late but within two months NBL will also have its ATMs." NBL has 10 per cent share (Rs 42 billion) in the total deposit of 25 commercial banks that stands at Rs 426 billion. However, it has a meagre share of five per cent (Rs 17 billion) in the total lending of commercial banks.
Source:
THT
Read More
PCBL, CG Finco pact
Prime Commercial Bank Ltd (PCBL) has joined hands with CG Finco Pvt Ltd, one of the principal agents of Western Union in Nepal, to provide Western Union Money Transfer (WUMT) services. CG Finco GM Ashish Sharma and PCBL CEO Narayan Das Manandhar signed the agreement on November 27 in this regard, according to a press release.
Source:
THT
Read More
Source:
THT
Read More
Remittance inflow jumps 80.7pc
Inflow of remittance from Nepali workers in foreign countries shot up by 80.7 percent during the first three months of the current fiscal year, according to a central bank report released Sunday. Remittance growth in the first quarter of the previous fiscal year was 17.2 percent, Nepal Rastra Bank (NRB) said.
The big jump in remittance also helped boost the country's overall balance of payments (BOP) during the period pushing it into positive territory after a long time, the report said.
According to the quarterly report on the current macroeconomic situation of the country, Nepal's BoP recovered from a deficit of Rs. 5.6 billion recorded in the first quarter of Fiscal Year 2007/08 to a surplus of Rs. 7.7 billion in the first three months of Fiscal Year 2008/09.
Similarly exports witnessed an upsurge of 27.1 percent during the first quarter of the current fiscal year against a mere 4.3 percent rise in the corresponding period last year.
NRB said that exports to both India and third countries swelled this year. It said exports to India during the period increased by 10.1 percent against a 0.6 percent rise recorded during the corresponding months last year. Likewise, exports to countries other than India swelled by 58.3 percent compared to an increase of 11.9 percent last year.
Exports to India increased due to a rise in export of readymade garments, shoes and sandals, polyester yarn, copper wire rods and G.I. pipes. An upsurge in export of pulses, woolen carpets, pashmina, herbs and tanned skin mainly contributed to an increase in overall exports to third countries.
Meanwhile the country imported 30.6 percent more in the first quarter this year. In the corresponding period last year, imports had gone up 13.1 percent.
Imports from India went up 19.3 percent in the review period, compared to a 13.7 percent rise in the corresponding period last year. NRB attributed the growth to rise in petroleum imports and higher import of vehicles and spare parts, cold rolled steel in coil, hot rolled sheet in coil and cement among other from India.
On the other hand imports from other countries jumped 48.5 percent in the three months while it had grown just 12.1 percent during the corresponding period last year. NRB said higher inflow gold, MS billet, telecom equipment and parts, computers and related products, and polythene granules among others from these countries contributed to the big surge.
During the first three months of the current fiscal year, total government spending decreased by 2.4 percent to Rs. 29.3 billion compared to an increase of 53.7 percent in the corresponding period last year.
The government's failure to make both recurrent and capital expenditures at significant levels resulted in the decline of overall expenditures. Given the relatively huge size of the budget, spending money has remained a big challenge for the government.
Recurrent expenditures increased by 13.2 percent to Rs. 18.5 billion compared to an increase of 35.6 percent in the corresponding period last year.
The government's budget deficit stood at Rs. 2.9 billion compared to a deficit of Rs. 9.4 billion in the corresponding period last year.
At the same time revenue collection saw an increase of 16 percent during the review period to Rs. 22.3 billion. The Ministry of Finance has said on Nov. 21 that revenue collection increased by 35.5 percent between mid-October and mid-November this year. It said Rs 32.97 billion had been collected in revenue in the first four months of this fiscal year. The government aims to increase revenue by 31.7 percent to meet its target of Rs. 142 billion, set for this year.
Domestic credit claims by non-financial government enterprises increased by 6.2 percent over the period compared to a decline of 17.3 percent in the corresponding period last year.
Higher credit claims by government enterprises like Janakpur Cigarette Factory, Nepal Oil Corporation, Nepal Airlines Corporation, Janak Education Material Center and Nepal Electricity Authority contributed to the increase, NRB said.
However, claims on government financial institutions declined by 6.7 percent in the review period. Meanwhile, overall domestic credit increased by 6.8 percent during the period against 6.9 percent recorded in the corresponding period last year.
Gross foreign exchange reserves stood at Rs. 230.8 billion in mid-October, an increase of 8.5 percent compared to a decline of 4.1 percent in the corresponding period last year. The current level of reserves is adequate for financing merchandise imports for 10.1 months, and merchandise and service imports for eight months, according to NRB.
Source:
Ekantipur
Read More
The big jump in remittance also helped boost the country's overall balance of payments (BOP) during the period pushing it into positive territory after a long time, the report said.
According to the quarterly report on the current macroeconomic situation of the country, Nepal's BoP recovered from a deficit of Rs. 5.6 billion recorded in the first quarter of Fiscal Year 2007/08 to a surplus of Rs. 7.7 billion in the first three months of Fiscal Year 2008/09.
Similarly exports witnessed an upsurge of 27.1 percent during the first quarter of the current fiscal year against a mere 4.3 percent rise in the corresponding period last year.
NRB said that exports to both India and third countries swelled this year. It said exports to India during the period increased by 10.1 percent against a 0.6 percent rise recorded during the corresponding months last year. Likewise, exports to countries other than India swelled by 58.3 percent compared to an increase of 11.9 percent last year.
Exports to India increased due to a rise in export of readymade garments, shoes and sandals, polyester yarn, copper wire rods and G.I. pipes. An upsurge in export of pulses, woolen carpets, pashmina, herbs and tanned skin mainly contributed to an increase in overall exports to third countries.
Meanwhile the country imported 30.6 percent more in the first quarter this year. In the corresponding period last year, imports had gone up 13.1 percent.
Imports from India went up 19.3 percent in the review period, compared to a 13.7 percent rise in the corresponding period last year. NRB attributed the growth to rise in petroleum imports and higher import of vehicles and spare parts, cold rolled steel in coil, hot rolled sheet in coil and cement among other from India.
On the other hand imports from other countries jumped 48.5 percent in the three months while it had grown just 12.1 percent during the corresponding period last year. NRB said higher inflow gold, MS billet, telecom equipment and parts, computers and related products, and polythene granules among others from these countries contributed to the big surge.
During the first three months of the current fiscal year, total government spending decreased by 2.4 percent to Rs. 29.3 billion compared to an increase of 53.7 percent in the corresponding period last year.
The government's failure to make both recurrent and capital expenditures at significant levels resulted in the decline of overall expenditures. Given the relatively huge size of the budget, spending money has remained a big challenge for the government.
Recurrent expenditures increased by 13.2 percent to Rs. 18.5 billion compared to an increase of 35.6 percent in the corresponding period last year.
The government's budget deficit stood at Rs. 2.9 billion compared to a deficit of Rs. 9.4 billion in the corresponding period last year.
At the same time revenue collection saw an increase of 16 percent during the review period to Rs. 22.3 billion. The Ministry of Finance has said on Nov. 21 that revenue collection increased by 35.5 percent between mid-October and mid-November this year. It said Rs 32.97 billion had been collected in revenue in the first four months of this fiscal year. The government aims to increase revenue by 31.7 percent to meet its target of Rs. 142 billion, set for this year.
Domestic credit claims by non-financial government enterprises increased by 6.2 percent over the period compared to a decline of 17.3 percent in the corresponding period last year.
Higher credit claims by government enterprises like Janakpur Cigarette Factory, Nepal Oil Corporation, Nepal Airlines Corporation, Janak Education Material Center and Nepal Electricity Authority contributed to the increase, NRB said.
However, claims on government financial institutions declined by 6.7 percent in the review period. Meanwhile, overall domestic credit increased by 6.8 percent during the period against 6.9 percent recorded in the corresponding period last year.
Gross foreign exchange reserves stood at Rs. 230.8 billion in mid-October, an increase of 8.5 percent compared to a decline of 4.1 percent in the corresponding period last year. The current level of reserves is adequate for financing merchandise imports for 10.1 months, and merchandise and service imports for eight months, according to NRB.
Source:
Ekantipur
Read More
StanChart's scheme
Standard Chartered Bank Nepal Ltd has launched Diva Account. The account is a variant of the generic local currency savings accounts, designed and packaged for women. Account holders will get 0.5 per cent more interest than on normal savings account. Minimum balance for opening the account is Rs 500. The account will also provide an option for free accidental insurance coverage upto Rs 200,000.
Source: THT
Read More
Source: THT
Read More
StanChart's scheme
Standard Chartered Bank Nepal Ltd has launched Diva Account. The account is a variant of the generic local currency savings accounts, designed and packaged for women. Account holders will get 0.5 per cent more interest than on normal savings account. Minimum balance for opening the account is Rs 500. The account will also provide an option for free accidental insurance coverage upto Rs 200,000.
Source: THT
Read More
Source: THT
Read More
GMFIL to give bonus and dividend
The 80th BOD meeting of Guheswori Merchant Banking & Finance Ltd. held on 19th November 2008 (2065 Mangshir 4) has decided to propose 15% bonus share and 0.79% cash dividend (tax purpose) from the profit of fiscal year 2064/2065. GMFIL has posted Rs. 6.142 million net profit (unaudited figure) in its recently published first quarter financial report.
Source:
Jamb News Service
Read More
Source:
Jamb News Service
Read More
SBL to give bonus and right share
The 110th BOD meeting of Siddhartha Bank Ltd. held on 27th November 2008 (2065 Mangshir 12) has proposed to give 15% bonus share from the profit of 2064/65. Furthermore, it has decided to issue 2:1 right share in the near future. Both these proposals are to be approved from NRB and its AGM. After the issuance of bonus and right shares, the paid up capital of the bank will reach to Rs. 1.4283 billion. Meanwhile, the bank has plans of extending 10 more branches within a year.
Source:
Jamb News Service
Read More
Source:
Jamb News Service
Read More
Banks collect 22pc more deposit in Q1
Nepali commercial banks collected 22 percent more deposit during the first quarter (Q1) of the current fiscal year than they did in the corresponding period last year, according to the unedited financial date released by Nepal Rastra Bank (NRB), the central bank of the country.
The 25 commercial banks in Nepal collected Rs. 450 billion in deposits during the period against the Rs. 351 billion collected during the corresponding period last year. There were only 23 commercial banks during the first quarter of Fiscal Year 2007/08.
The deposit figures for the first quarter of Fiscal Year 2008/09 also included Rs. 37.59 billion in foreign currency and the remaining in domestic currency.
According to NRB, Rastriya Banijya Bank (RBB), the largest bank of the country, collected the most deposits in the period followed by Nepal Bank Ltd. (NBL). RBB collected Rs. 56.7 billion while NBL collected Rs. 40 billion during the first quarter of this year.
Likewise, collective loans and advances of the commercial banks increased by 25.5 percent during the first quarter of the current fiscal year.
The 25 commercial banks provided loans and advances amounting Rs. 321 billion against Rs. 239 billion provided by the 23 banks in last fiscal year's first quarter.
Nepal Investment Bank Ltd. was the largest provider of loans and advances during the period with Rs. 31.5 billion followed by Agriculture Development Bank, Nepal (ADBN) with Rs. 31.1 billion, the NRB report said.
Despite being the two largest banks of the country, RBB and NBL didn't provide the biggest amount of loans and advances as they were tied down by their negative net-worth. The central bank has fixed limitation on loans for banks with negative net-worth.
In the meantime, commercial banks collectively earned a net profit of Rs. 2.59 billion during the period against Rs. 1.91 billion last year. Among the 25 banks, RBB declared the highest net profit amounting Rs. 374 million, followed by Standard Chartered Bank Nepal Ltd (SCBNL) with Rs. 249 billion.
Source:
Ekantipur
Read More
The 25 commercial banks in Nepal collected Rs. 450 billion in deposits during the period against the Rs. 351 billion collected during the corresponding period last year. There were only 23 commercial banks during the first quarter of Fiscal Year 2007/08.
The deposit figures for the first quarter of Fiscal Year 2008/09 also included Rs. 37.59 billion in foreign currency and the remaining in domestic currency.
According to NRB, Rastriya Banijya Bank (RBB), the largest bank of the country, collected the most deposits in the period followed by Nepal Bank Ltd. (NBL). RBB collected Rs. 56.7 billion while NBL collected Rs. 40 billion during the first quarter of this year.
Likewise, collective loans and advances of the commercial banks increased by 25.5 percent during the first quarter of the current fiscal year.
The 25 commercial banks provided loans and advances amounting Rs. 321 billion against Rs. 239 billion provided by the 23 banks in last fiscal year's first quarter.
Nepal Investment Bank Ltd. was the largest provider of loans and advances during the period with Rs. 31.5 billion followed by Agriculture Development Bank, Nepal (ADBN) with Rs. 31.1 billion, the NRB report said.
Despite being the two largest banks of the country, RBB and NBL didn't provide the biggest amount of loans and advances as they were tied down by their negative net-worth. The central bank has fixed limitation on loans for banks with negative net-worth.
In the meantime, commercial banks collectively earned a net profit of Rs. 2.59 billion during the period against Rs. 1.91 billion last year. Among the 25 banks, RBB declared the highest net profit amounting Rs. 374 million, followed by Standard Chartered Bank Nepal Ltd (SCBNL) with Rs. 249 billion.
Source:
Ekantipur
Read More
NIBL's hat-trick as Bank of the Year
Nepal Investment Bank Ltd (NIBL) has been awarded the prestigious ‘Bank of the Year 2008' by the London-based Financial Times Group's The Banker Magazine — making it the first Nepali bank to win the award for the third time. NIBL won the ‘Bank of the Year' award in 2003 and 2005. It was selected for this honour amongst the Nepali banks as it has met the stringent benchmark criteria set by The Banker. The award is based on the growth and performance in terms of capital, assets, return on equity, management staff and business strategy. The capital base of the bank is at 2,919 million, making NIBL's the largest capital base among banks and reflecting security and stability. In the fiscal year 2007-08, NIBL boosted its net profit to Rs 697 million, a growth of 39.12 per cent over the previous fiscal year. The deposit of the bank in this quarter of this fiscal year stands at 38,914 million, a growth of 42.8 per cent over the previous quarter. Non-performing loan (NPL) of the bank stands at 0.98 per cent. The bank has 46 ATM's and 22 branches across the country. It plans to have over 50 branches by 2010. NIBL has also introduced various products for its 1,83,000-strong clientele. It has several firsts to its credit, like being the first Nepali bank to introduce 365 days banking and the first to introduce Visa Electron Debit Card with 1,60,000 cards issued. It is the first among non-government banks in Nepal to introduce loans against gold and silver, a much-demanded short-term facility and also the first to introduce utility payment through ATMs. NIBL general mnager Jyoti Prakash Pandey said that it has striven to prove that a Nepali bank can provide top quality service.
Source:
THT
Read More
Source:
THT
Read More
Blasts govt `negativity' toward investors Securities Board chief quits
Cheif of the regulatory body of Nepal's securities market Wednesday quit bemoaning the government's apathy toward the capital market.
Announcing his resignation at a press conference on Wednesday evening, Securities Board of Nepal (SEBON) Chairman Dr. Chiranjibi Nepal said the government looked at investors as gamblers and instead of taking steps to safeguard their investment, it was discouraging further investment.
"The stock market has been sliding for the last two months, but the government has not paid any attention," he said.
The Nepal Stock Exchange (NEPSE) Index which stood at 1004.28 points on Sept. 21, tumbled to 698.81 on Tuesday, its lowest point in a year and half. However before the announcement of the board chairman's resignation, the market rallied by 29.76 points on Wednesday. It had nosedived by 27.66 points on Tuesday.
"At a time when governments around the world are working to boost investor morale by cutting taxes on their investment in the capital market, the Nepali government hikes the capital gain tax," Dr. Nepal said.
The government raised the capital gain tax to 15 percent from 10 percent in its budget for the current fiscal year.
Dr. Nepal also cited a string of ‘rumours' which have circulated for over a month that the government had decided to impose a cap on rights issue spread and introduce a provision that would require investors to declare their sources of income. According to the rumour, the government would fix the base price for shares from rights issues at Rs. 100 and zero for bonus shares while calculating capital gain tax.
"Rumours that it would impose taxes on rights issues have sent shockwaves through market and spread panic among investors. But the government has not yet clarified whether there is any basis for the rumour," he said.
"When investor confidence is shaken and the market is falling, the Finance Minister should have asked SEBON about the development and discussed measures to boost investor confidence," Dr. Nepal said. "But, I was never called to talk on the issue by the new government although I was called twice on different occasions in the last three months."
He said Finance Minister Dr. Baburam Bhattarai had called the share market a ‘gambling ground' and this had also affected morale.
Calling the government's attitude towards investors ‘negative', he said efforts by a lone SEBON could not restore investor confidence.
Dr. Nepal warned that if the capital market crashed, it could take down many financial institutions with it. Many investors have invested in the share market by taking loans from financial institutions. "If they default due to their loss at the share market, the banks may also suffer heavily," he said.
Source:
Ekantipur
Read More
Announcing his resignation at a press conference on Wednesday evening, Securities Board of Nepal (SEBON) Chairman Dr. Chiranjibi Nepal said the government looked at investors as gamblers and instead of taking steps to safeguard their investment, it was discouraging further investment.
"The stock market has been sliding for the last two months, but the government has not paid any attention," he said.
The Nepal Stock Exchange (NEPSE) Index which stood at 1004.28 points on Sept. 21, tumbled to 698.81 on Tuesday, its lowest point in a year and half. However before the announcement of the board chairman's resignation, the market rallied by 29.76 points on Wednesday. It had nosedived by 27.66 points on Tuesday.
"At a time when governments around the world are working to boost investor morale by cutting taxes on their investment in the capital market, the Nepali government hikes the capital gain tax," Dr. Nepal said.
The government raised the capital gain tax to 15 percent from 10 percent in its budget for the current fiscal year.
Dr. Nepal also cited a string of ‘rumours' which have circulated for over a month that the government had decided to impose a cap on rights issue spread and introduce a provision that would require investors to declare their sources of income. According to the rumour, the government would fix the base price for shares from rights issues at Rs. 100 and zero for bonus shares while calculating capital gain tax.
"Rumours that it would impose taxes on rights issues have sent shockwaves through market and spread panic among investors. But the government has not yet clarified whether there is any basis for the rumour," he said.
"When investor confidence is shaken and the market is falling, the Finance Minister should have asked SEBON about the development and discussed measures to boost investor confidence," Dr. Nepal said. "But, I was never called to talk on the issue by the new government although I was called twice on different occasions in the last three months."
He said Finance Minister Dr. Baburam Bhattarai had called the share market a ‘gambling ground' and this had also affected morale.
Calling the government's attitude towards investors ‘negative', he said efforts by a lone SEBON could not restore investor confidence.
Dr. Nepal warned that if the capital market crashed, it could take down many financial institutions with it. Many investors have invested in the share market by taking loans from financial institutions. "If they default due to their loss at the share market, the banks may also suffer heavily," he said.
Source:
Ekantipur
Read More
Bonus Share of HBL
The BOD meeting of the Himalayan Bank Ltd. held on 25 November 2008 (2065 Mangsir 10) has decided to propose 25% cash dividend and 20% bonus share of the profit of 2064/2065. The subject to be approved by NRB and the AGM of the company.
Source: Jamb News Service
Read More
Source: Jamb News Service
Read More
Book Closure of BOK
The BOD meeting of Bank of Kathmandu Ltd. held on 25th November 2008 (2065 Mangshir 10) has decided to conduct the 14th annual general meeting on 21st December 2008 (2065 Poush 6). In this regard, the book closure of the bank is announced to be done from 3rd December 2008 to 21st December 2008 (2065 Mangshir 18 to 2065 Poush 6).
Source:
Jamb News Service
Read More
Source:
Jamb News Service
Read More
NMB, NLGIC ink pact
Upendra Poudel, CEO of NMB Bank Ltd and Bijay Shah, CEO of NLG Insurance signed an agreement on providing insurance through the bank. According to the MoU, the insurance of collateral will be easy, states a press release
Source:
THT
Read More
Source:
THT
Read More
SCBNL's dividend
Standard Chartered Bank Nepal Ltd's (SCBNL)22nd AGM on Tuesday approved 80 per cent cash dividend and 50 per cent bonus share. The bank's has posted Rs 818.9 million net profit for the fiscal year 2007-08, a growth of 18.4 per cent in comparison to the previous year, states a press release. The bank has also posted a growth of 20.68 per cent in its deposit at Rs 29.744 million for 2007-08.
Source:
THT
Read More
Source:
THT
Read More
Hopes to prevent high risk investment in real estate
Nepal Rastra Bank (NRB), the country's central bank, is tightening the country's monetary policy to discourage financial institutions from further investing in real estate without considering the risks.
The International Monetary Fund (IMF) had said Sunday that the loose monetary policy adopted by NRB had, to some extent, contributed to boost real estate prices.
IMF had also warned that decline in real estate prices would have a negative impact on banks and their output growth.
Talking to the Post, NRB Acting Governor Krishna Bahadur Manandhar said the central bank had increased 'risk weight' provisioning to 150 percent in the real estate sector against 100 percent in other portfolios.
He informed that NRB had also increased cash reserve ratio (CRR), the minimum reserves a bank must hold to deposits, to 5.5 percent from five percent to discourage banks and financial institutions from investing in high risk ventures.
NRB said 13 percent of Nepali banks' investment was in the real estate sector, which could not be termed 'massive'.
However, Manandhar said that some banks had invested up to 40 percent in the retail sector. "Especially new banks as well as some old ones have high investment in the retail sector," he said.
President of Nepal Banker's Association Radhesh Pant was of the view that banks should be more cautious in investing in real estate and NRB should monitor the banks closely.
Banks should make correct valuation of the collateral given that real estate had been witnessing a bubble for the last few years, Pant said.
Pant, who also heads Bank of Kathmandu, stressed the need to diversify investment among various portfolios to minimise risk.
It should be noted that the current global financial crisis started from the real estate sector after financial institutions investing heavily in sub-prime and other high risk mortgages were hit by high rate of defaults after housing prices in the U.S. dropped significantly.
Another concern of IMF was the growing number of financial institutions licensed by NRB, which, it said, was putting NRB's supervisory soundness under strain.
Manandhar said NRB could not prevent any bank from coming into the market if it fulfilled the set criteria.
He said that NRB had increased capital adequacy to Rs. 2 billion for commercial banks just to start their operation from the earlier requirement of Rs. 1 billion in order to discourage the launch of new banks.
"We have also provisioned for disclosure of income sources of new investors in banks," he said. "And yet, we have failed to stop new banks from coming into the market."
Three new national level commercial banks and 32 other financial institutions are currently awaiting the central bank's approval, according to NRB. There are 25 national level commercial banks already in operation.
Manadhar was also confident that inflation would decline to a single digit although IMF had predicted it would hover at around 11 percent. "Inflation has already reached its highest level. It cannot grow at the same level this year," he said. "Given the global economic slowdown and the nosedive in petroleum prices, inflation is certain to go down," he added.
Source:
Ekantipur
Read More
The International Monetary Fund (IMF) had said Sunday that the loose monetary policy adopted by NRB had, to some extent, contributed to boost real estate prices.
IMF had also warned that decline in real estate prices would have a negative impact on banks and their output growth.
Talking to the Post, NRB Acting Governor Krishna Bahadur Manandhar said the central bank had increased 'risk weight' provisioning to 150 percent in the real estate sector against 100 percent in other portfolios.
He informed that NRB had also increased cash reserve ratio (CRR), the minimum reserves a bank must hold to deposits, to 5.5 percent from five percent to discourage banks and financial institutions from investing in high risk ventures.
NRB said 13 percent of Nepali banks' investment was in the real estate sector, which could not be termed 'massive'.
However, Manandhar said that some banks had invested up to 40 percent in the retail sector. "Especially new banks as well as some old ones have high investment in the retail sector," he said.
President of Nepal Banker's Association Radhesh Pant was of the view that banks should be more cautious in investing in real estate and NRB should monitor the banks closely.
Banks should make correct valuation of the collateral given that real estate had been witnessing a bubble for the last few years, Pant said.
Pant, who also heads Bank of Kathmandu, stressed the need to diversify investment among various portfolios to minimise risk.
It should be noted that the current global financial crisis started from the real estate sector after financial institutions investing heavily in sub-prime and other high risk mortgages were hit by high rate of defaults after housing prices in the U.S. dropped significantly.
Another concern of IMF was the growing number of financial institutions licensed by NRB, which, it said, was putting NRB's supervisory soundness under strain.
Manandhar said NRB could not prevent any bank from coming into the market if it fulfilled the set criteria.
He said that NRB had increased capital adequacy to Rs. 2 billion for commercial banks just to start their operation from the earlier requirement of Rs. 1 billion in order to discourage the launch of new banks.
"We have also provisioned for disclosure of income sources of new investors in banks," he said. "And yet, we have failed to stop new banks from coming into the market."
Three new national level commercial banks and 32 other financial institutions are currently awaiting the central bank's approval, according to NRB. There are 25 national level commercial banks already in operation.
Manadhar was also confident that inflation would decline to a single digit although IMF had predicted it would hover at around 11 percent. "Inflation has already reached its highest level. It cannot grow at the same level this year," he said. "Given the global economic slowdown and the nosedive in petroleum prices, inflation is certain to go down," he added.
Source:
Ekantipur
Read More
Sebon grants licence to more merchant banks
Securities Board of Nepal (Sebon) granted permission to three more financial institutions to work as the Merchant Banks whereas three others are in pipeline. Development Credit Bank Ltd (DCBL), Vibor Bank Ltd (VBL) and Nepal Housing and Merchant Finance Ltd (NHMFL) got the licence to work as Merchant Banks making it to a total of 11 financial institutions working as Merchant Banks. "With more companies floating their shares, number of Merchant Banks has also increased," said Dr Chiranjivi Nepal, chairman of the Sebon, the regulatory authority of the capital market.
The Merchant banks can work as Issue and sales Manager, Share Registrar, Underwriter and Portofolio Manager, according to the Merchant Banker Regulation-2064 that has come into effect from February 15 to help better manage capital market. The regulation has clearly defined — Issue Manager, Underwriter, Share Registrar and Portfolio Manager — four entities. They all have to get licences from the board before operating. "A company can also work as all the four," according to the regulation.
Issue Manager manages issues of shares, Underwriter underwrites shares that are not sold and buys unsold shares, Share Registrar keeps all the records of shareholders and helps register shares, while Portfolio Manager helps investors to manage their portfolio. They all have to get licence separately to operate as either one of the four, or all from the regulatory authority, the Sebon. In case, any company wants to operate as all the four, it must have a paid up capital of Rs 70 million. However, the paid up capital for Issuer Manager is Rs 30 million, Underwriter is Rs 40 million, Share Registrar is Rs 10 million and Portfolio Manager is Rs 10 million.
According to the regulation, Merchant Banks must disclose their annual report within the three months after the end of fiscal year to maintain transparency. They also have to submit their half-yearly report within the 60 days of half yearly closing to the Sebon.
"They are regulated by the board," said Nepal adding that earlier due to dual regulation of Nepal Rastra Bank (NRB) and the board, there had been some confusion. However, Issue managers have been in trouble regarding the allotment of Initial Public Offerings (IPOs) of some financial institutions recently. NIDC Capital Markets Ltd faced wrath from the investors during the allotment of Global Bank's shares. A week ago that NMB Bank had also faced the similar music during the allotment of Clean Energy Development Bank's shares.
Source:
THT
Read More
The Merchant banks can work as Issue and sales Manager, Share Registrar, Underwriter and Portofolio Manager, according to the Merchant Banker Regulation-2064 that has come into effect from February 15 to help better manage capital market. The regulation has clearly defined — Issue Manager, Underwriter, Share Registrar and Portfolio Manager — four entities. They all have to get licences from the board before operating. "A company can also work as all the four," according to the regulation.
Issue Manager manages issues of shares, Underwriter underwrites shares that are not sold and buys unsold shares, Share Registrar keeps all the records of shareholders and helps register shares, while Portfolio Manager helps investors to manage their portfolio. They all have to get licence separately to operate as either one of the four, or all from the regulatory authority, the Sebon. In case, any company wants to operate as all the four, it must have a paid up capital of Rs 70 million. However, the paid up capital for Issuer Manager is Rs 30 million, Underwriter is Rs 40 million, Share Registrar is Rs 10 million and Portfolio Manager is Rs 10 million.
According to the regulation, Merchant Banks must disclose their annual report within the three months after the end of fiscal year to maintain transparency. They also have to submit their half-yearly report within the 60 days of half yearly closing to the Sebon.
"They are regulated by the board," said Nepal adding that earlier due to dual regulation of Nepal Rastra Bank (NRB) and the board, there had been some confusion. However, Issue managers have been in trouble regarding the allotment of Initial Public Offerings (IPOs) of some financial institutions recently. NIDC Capital Markets Ltd faced wrath from the investors during the allotment of Global Bank's shares. A week ago that NMB Bank had also faced the similar music during the allotment of Clean Energy Development Bank's shares.
Source:
THT
Read More
CEDBL's "hydro fund" operational
Clean Energy Development Bank Ltd. has come up with a "hydro fund" worth Rs. 300 million. A program held on Monday announced that the fund would be invested on a hydro project with 50 MW capacity or more depending upon the attractiveness of the project.
Manoj Goyal, the CEO of CEDBL said that the fund targets on the hydro projects that have already received the license but aren't able to even finance the study and research programs. From project analysis to construction, all the financial need would be facilitated by the fund created.
U.S. Agency for International Development's South Asia Regional Initiative for Energy (USAID's SARI/Energy) is providing technical assistance to the Clean Energy Development Bank (CEDB) to develop the fund. Such fund is created for the first time in Nepal and it will enable 40 hydropower projects edifice within two years.
CEDBL will be providing up to 70% loan from the established fund and remaining 30% capital will also be arranged by the bank itself. Moreover, the construction work for the most feasible project will soon be started.
Source:
Jamb News Service
Read More
Manoj Goyal, the CEO of CEDBL said that the fund targets on the hydro projects that have already received the license but aren't able to even finance the study and research programs. From project analysis to construction, all the financial need would be facilitated by the fund created.
U.S. Agency for International Development's South Asia Regional Initiative for Energy (USAID's SARI/Energy) is providing technical assistance to the Clean Energy Development Bank (CEDB) to develop the fund. Such fund is created for the first time in Nepal and it will enable 40 hydropower projects edifice within two years.
CEDBL will be providing up to 70% loan from the established fund and remaining 30% capital will also be arranged by the bank itself. Moreover, the construction work for the most feasible project will soon be started.
Source:
Jamb News Service
Read More
USAID supports investment in hydropower
The USAID has launched the "Nepal Small Hydro Fund," to support the investment in the hydropower sector.
The fund is an initiative of the U.S. Agency for International Development's South Asia Regional Initiative for Energy (SARI/Energy).
"A Rs. 300 million hydropower deposit fund has been created to develop hydropower projects in Nepal, unlocking the potential of the hydro survey licenses that have been issued by the government," says a press release issued by US Embassy.
The fund was launched at a programme where potential investors, developers, and high level representatives from the Government of Nepal, USAID/Nepal and SARI/Energy were present at the event organized by the Clean Energy Development Bank.
USAID's SARI/Energy is providing technical assistance to the Clean Energy Development Bank (CEDB) to develop the fund. SARI/Energy supports private sector financial institutions to enable investment in small and medium-sized hydropower projects.
Reiterating the need for investment in hydropower for sustainable economic development, Beth S. Paige, Mission Director of USAID/Nepal, said "Encouraging private sector financial institutions to invest in hydropower is an important first step to accelerate Nepal's efforts in developing its indigenous hydro-resources to fulfill its own and regional energy needs. Nepal with its vast hydropower potential can be a regional electricity supplier which will foster closer regional cooperation on a broad range of other issues."
USAID's SARI/Energy promotes clean energy access in South Asia through three main areas: cross border energy trade, energy market formation, and regional clean energy development. Through these activities, SARI/Energy facilitates efficient regional energy resource utilization, works toward transparent and profitable energy practices, mitigates the environmental impacts of energy production, and increases regional access to energy. The countries participating in the initiative are Nepal, Afghanistan, Bangladesh, Bhutan, India, Maldives, Pakistan, and Sri Lanka.
Source:
nepalnews.com
Read More
The fund is an initiative of the U.S. Agency for International Development's South Asia Regional Initiative for Energy (SARI/Energy).
"A Rs. 300 million hydropower deposit fund has been created to develop hydropower projects in Nepal, unlocking the potential of the hydro survey licenses that have been issued by the government," says a press release issued by US Embassy.
The fund was launched at a programme where potential investors, developers, and high level representatives from the Government of Nepal, USAID/Nepal and SARI/Energy were present at the event organized by the Clean Energy Development Bank.
USAID's SARI/Energy is providing technical assistance to the Clean Energy Development Bank (CEDB) to develop the fund. SARI/Energy supports private sector financial institutions to enable investment in small and medium-sized hydropower projects.
Reiterating the need for investment in hydropower for sustainable economic development, Beth S. Paige, Mission Director of USAID/Nepal, said "Encouraging private sector financial institutions to invest in hydropower is an important first step to accelerate Nepal's efforts in developing its indigenous hydro-resources to fulfill its own and regional energy needs. Nepal with its vast hydropower potential can be a regional electricity supplier which will foster closer regional cooperation on a broad range of other issues."
USAID's SARI/Energy promotes clean energy access in South Asia through three main areas: cross border energy trade, energy market formation, and regional clean energy development. Through these activities, SARI/Energy facilitates efficient regional energy resource utilization, works toward transparent and profitable energy practices, mitigates the environmental impacts of energy production, and increases regional access to energy. The countries participating in the initiative are Nepal, Afghanistan, Bangladesh, Bhutan, India, Maldives, Pakistan, and Sri Lanka.
Source:
nepalnews.com
Read More
Thursday, December 11, 2008
EBL AGM okays 30pc bonus shares
The 14th Annual General Meeting of Everest Bank Ltd. (EBL) has approved 30 percent bonus shares and 20 percent cash dividend for its shareholders, the bank said in a statement Monday. The bank also declared a 52.2 percent rise in its disposable net profit in Fiscal Year 2007/08, which had gone up from Rs. 296.4 million in Fiscal Year 2006/07 to Rs. 451.2 million last year. Similarly the bank said its operating profit went up 39.7 percent to Rs. 823.9 million. Earnings per share had gone up from Rs. 78.40 to Rs. 91.82 in the period; the bank said adding that deposits had grown by 31.8 percent, advances by 34 percent while the bank's non performing loans had been cut to 0.68 percent from the previous year's 0.80 percent. The bank said it had a net NPA of minus 1.96 percent after provisioning.
Source:
Ekantipur
Read More
Source:
Ekantipur
Read More
CHCL to give dividend
The 147th BOD meeting of Chilime Hydropower Co. Ltd. has decided to make a provision to distribute 35% cash dividend. CHCL has built Chilime Hydropower Plant at Rasuwa with the installed capacity of 22.1 MW; which is the first hydropower plant built mobilizing the national financial resources and technical skill. It has started its commercial generation since 2060-5-8 BS.
The Commission for the Investigation of Abuse of Authority (CIAA) has already directed Chilime Hydropower Company to issue its shares to the public within three months. It had allocated shares for its employees three years ago but the ordinary shares of the company are not yet issued.
Source:
Jamb News Service
Read More
The Commission for the Investigation of Abuse of Authority (CIAA) has already directed Chilime Hydropower Company to issue its shares to the public within three months. It had allocated shares for its employees three years ago but the ordinary shares of the company are not yet issued.
Source:
Jamb News Service
Read More
EBL profit up 68pc
Everest Bank Ltd's (EBL's) operating profit went up by 67.7 percent in the first four months of the current fiscal year. The bank earned an operating profit of Rs. 357 million in the four month period against the Rs. 213 million it earned in the corresponding period last year, it said in a statement Sunday. The bank also said that it will be opening branches in Kirtipur in December and in Tulsipur and Surkhet soon.
Source:
Ekantipur
Read More
Source:
Ekantipur
Read More
Banks walking on thin ice: IMF warns of dangers of real estate investment
The International Monetary Fund (IMF) has asked Nepal Rastra Bank (NRB), the country's central bank, to tighten the monetary policy to prevent risks posed by the growing exposure of the financial sector to real estate.
Brian J. Aitken, deputy division chief of the IMF for Asia and Pacific, said at a press meet on Sunday that a decline in real estate prices would have a negative effect on banks and ultimately on output given their growing investment in the sector.
Aitken, who is also the chief of the visiting delegation to Nepal, said that some banks were really in a most vulnerable position. He, however, declined to name those banks. He said that the loose monetary policy was also responsible to some extent for fuelling the ongoing developments in the real estate market.
The IMF has also shown concern over the mushrooming banks and financial institutions licensed by NRB. "It is straining the supervisory soundness of the central bank," it said.
When asked if he thought that licenses should not be given to new banks and financial institutions, Aitken said that NRB needed more resources and manpower to supervise the growing number of financial institutions.
The IMF forecasted that the country's average inflation could increase to around 11 percent in the current fiscal year. Inflation had increased by 14.1 percent in mid-October this year against the corresponding period last year, according to NRB.
When asked about the likely impact of the global recession on the country, Aitken said Nepal need not worry as it was largely isolated from the global economy. He stressed the need to lead the ongoing peace process to a logical conclusion saying that it was critical for Nepal's economic development.
He said that the global recession could have an impact on the flow of remittances into Nepal due to job cuts in foreign countries. But he said Nepal' foreign currency reserves were at a satisfactory level. Aitken termed the recently approved government budget "ambitious"; and warned that if it failed, macro-economic stability might be threatened.
He was especially concerned about the "ambitious" revenue collection target. He, however, said that the goal could be met if progress continued at its current pace.
When asked whether Nepali officials had discussed the IMF's Poverty Reduction and Growth Facilities (PRGF) arrangement for Nepal, Aitken said that Finance Minister Dr. Baburam Bhattarai had asked his team to start a fresh one as the old one had expired. He, however, revealed that discussions were at a preliminary stage. He also expressed satisfaction over the finance minister's commitment to invite tenders for a management contract for two ailing government-owned banks -- Nepal Bank Ltd. and Rastriya Banijya Bank.
He said that the IMF supported the idea that the financial institutions should operate commercially.
Source:
Ekantipur
Read More
Brian J. Aitken, deputy division chief of the IMF for Asia and Pacific, said at a press meet on Sunday that a decline in real estate prices would have a negative effect on banks and ultimately on output given their growing investment in the sector.
Aitken, who is also the chief of the visiting delegation to Nepal, said that some banks were really in a most vulnerable position. He, however, declined to name those banks. He said that the loose monetary policy was also responsible to some extent for fuelling the ongoing developments in the real estate market.
The IMF has also shown concern over the mushrooming banks and financial institutions licensed by NRB. "It is straining the supervisory soundness of the central bank," it said.
When asked if he thought that licenses should not be given to new banks and financial institutions, Aitken said that NRB needed more resources and manpower to supervise the growing number of financial institutions.
The IMF forecasted that the country's average inflation could increase to around 11 percent in the current fiscal year. Inflation had increased by 14.1 percent in mid-October this year against the corresponding period last year, according to NRB.
When asked about the likely impact of the global recession on the country, Aitken said Nepal need not worry as it was largely isolated from the global economy. He stressed the need to lead the ongoing peace process to a logical conclusion saying that it was critical for Nepal's economic development.
He said that the global recession could have an impact on the flow of remittances into Nepal due to job cuts in foreign countries. But he said Nepal' foreign currency reserves were at a satisfactory level. Aitken termed the recently approved government budget "ambitious"; and warned that if it failed, macro-economic stability might be threatened.
He was especially concerned about the "ambitious" revenue collection target. He, however, said that the goal could be met if progress continued at its current pace.
When asked whether Nepali officials had discussed the IMF's Poverty Reduction and Growth Facilities (PRGF) arrangement for Nepal, Aitken said that Finance Minister Dr. Baburam Bhattarai had asked his team to start a fresh one as the old one had expired. He, however, revealed that discussions were at a preliminary stage. He also expressed satisfaction over the finance minister's commitment to invite tenders for a management contract for two ailing government-owned banks -- Nepal Bank Ltd. and Rastriya Banijya Bank.
He said that the IMF supported the idea that the financial institutions should operate commercially.
Source:
Ekantipur
Read More
Global recession could hit Nepal's remittance income: IMF
The ongoing global economic crisis could hit the remittance earnings for Nepal, according to officials of International Monetary Fund (IMF).
The remittance earning is the mainstay of foreign exchange earning for Nepal. Last year, Nepal earned nearly Rs 100 billion from remittances. And in recent years, the remittance earning have grown by thirty percent, on average.
Addressing a press conference in Kathmandu, Sunday, Brian J. Aitken, deputy division chief, Asia and Pacific department of IMF, said, "Remittances remain the primary source of foreign exchange and they have been growing very rapidly. What we expect is there will be slowdown of that growth rate. And if it occurs it will take place over several years."
But he pointed that economic situation of India will have far more bearing on Nepal than the global recession.
"Nepal is fairly isolated from the global economic situation. But the main shadow is probably the slower growth in India," he said.
Aitken, however, downplayed concerns that donor assistance for Nepal could also be decreased due to slowdown in economies of western countries.
"I don't see any slowdown in donor pledges. And I certainly do not expect any over the next year or two. Governments may reassess their pledges but they certainly haven't done so in case of Nepal," he said.
Aitken had led an IMF delegation, which had come to Kathmandu, to evaluate the budget prepared by the new government.
The delegation has concluded that the budget, particularly its revenue target, is ambitious and could jeopardize the budget's stability if they are not met.
Source:
Nepalnews
Read More
The remittance earning is the mainstay of foreign exchange earning for Nepal. Last year, Nepal earned nearly Rs 100 billion from remittances. And in recent years, the remittance earning have grown by thirty percent, on average.
Addressing a press conference in Kathmandu, Sunday, Brian J. Aitken, deputy division chief, Asia and Pacific department of IMF, said, "Remittances remain the primary source of foreign exchange and they have been growing very rapidly. What we expect is there will be slowdown of that growth rate. And if it occurs it will take place over several years."
But he pointed that economic situation of India will have far more bearing on Nepal than the global recession.
"Nepal is fairly isolated from the global economic situation. But the main shadow is probably the slower growth in India," he said.
Aitken, however, downplayed concerns that donor assistance for Nepal could also be decreased due to slowdown in economies of western countries.
"I don't see any slowdown in donor pledges. And I certainly do not expect any over the next year or two. Governments may reassess their pledges but they certainly haven't done so in case of Nepal," he said.
Aitken had led an IMF delegation, which had come to Kathmandu, to evaluate the budget prepared by the new government.
The delegation has concluded that the budget, particularly its revenue target, is ambitious and could jeopardize the budget's stability if they are not met.
Source:
Nepalnews
Read More
Ace's dividends
The 13th AGM of Ace Development Bank on Thursday approved 10 per cent stock dividend and 0.53 per cent cash dividend from the profit of the fiscal year 2007-08. It also approved proposed 10:6.4 rights shares. "Paid up capital and post rights shares issue will be Rs 750.4 million," said a press release. The AGM ratified new share holding structure. Ace first quarter results shows 610 per cent improvement in its net profit compared to the same period last fiscal.
Source:
THT
Read More
Source:
THT
Read More
13 more companies to venture into insurance market
At a time when the entire insurance sector is plagued by unethical competition, thirteen more insurance companies are set to make their foray into the country's insurance market, reports Abhiyan Weekly.
The Insurance Board (IB) is carrying out necessary homework to issue licenses to these new players to commence their services.
Of the 13 insurance companies which are shortly coming into operation, eight are life insurance companies whereas the remaining five will provide non-life insurance service, the report said.
It is learnt that the people who have invested in these new companies have different background ranging from ordinary citizens to even Non-Resident Nepalese (NRN)'s.
The Insurance Act entitles the IB to issue operating licenses to non-life insurance companies directly. However, at the same time, it is mandatory for the board to get prior approval from the Finance Ministry to issue licenses to life insurance companies.
With the formal entry of these new insurance companies, the total number of insurance companies in the country will stand at 38. Most of the new insurance companies are said to have made necessary arrangements regarding logistics and manpower with the hope of coming into operation at the earliest.
"However, they are now complaining the lethargy being displayed by the board to issue operating licenses promptly,'' the political-economic weekly quoted a source as saying.
Source:
Nepalnews.com
Read More
The Insurance Board (IB) is carrying out necessary homework to issue licenses to these new players to commence their services.
Of the 13 insurance companies which are shortly coming into operation, eight are life insurance companies whereas the remaining five will provide non-life insurance service, the report said.
It is learnt that the people who have invested in these new companies have different background ranging from ordinary citizens to even Non-Resident Nepalese (NRN)'s.
The Insurance Act entitles the IB to issue operating licenses to non-life insurance companies directly. However, at the same time, it is mandatory for the board to get prior approval from the Finance Ministry to issue licenses to life insurance companies.
With the formal entry of these new insurance companies, the total number of insurance companies in the country will stand at 38. Most of the new insurance companies are said to have made necessary arrangements regarding logistics and manpower with the hope of coming into operation at the earliest.
"However, they are now complaining the lethargy being displayed by the board to issue operating licenses promptly,'' the political-economic weekly quoted a source as saying.
Source:
Nepalnews.com
Read More
Govt pledges SEZ law by December end
Minister for Industry Asta Laxmi Shakya said the government would be introducing a Special Economic Zone (SEZ) law by the end of December to bolster industrialization in the country. "SEZs are necessary to create a conducive industrial environment, but we are lacking laws governing them," said Minister Shakya, adding that the government had prepared the draft of a law regarding SEZs. Business people have been demanding implementation of the SEZ concept by enacting the necessary laws to facilitate industrial activities and promote exports. The government has declared 10 places including Panchkhal, Birgunj, Bhairahawa and Biratnagar as potential SEZs. Speaking at an interaction on the new industrial policy, trade policy, SEZ and industrial rehabilitation organized by the Confederation of Nepalese Industries (CNI) on Tuesday, Minister Shakya said the government had set a target of exporting 85 percent of the goods produced in SEZs where physical facilities and favourable labour laws will be enforced to encourage smooth industrial activities. Expressing concern over the ailing state of industries, she attributed their plight to lack of infrastructure, unskilled management and lack of loyalty of management staff. She revealed that the government would be coming up with the much awaited industrial policy by December this year. CNI president Binod Kumar Chaudhary asked the government to stimulate the Ministry of Industry to widen its role for the sake of industrial development. Anuj Agrawal, executive member of the CNI, presented the proposed industrial policy on behalf of the apex body of Nepal's industrialists. The draft policy envisages creating and developing the competitive strengths of domestic enterprises, promoting foreign direct investment, introducing modern technology and efficient management, developing necessary human resources, and generating employment at all levels especially in the rural areas, among others.
Source:
eKantipur
Read More
Source:
eKantipur
Read More
56 billion of Nepali bank's international investment in peril
Amid the global financial crisis, the international investments of most of the commercial banks have fallen in dangerous zone. According to Nepal Rastra Bank, 12 out of 25 commercial banks in Nepal have dumped their heavy bucks in the foreign land. Either it may be in the form of deposits, bonds or shares around 55.98 billion of the finances of the local banks are in the hands of European, American, Singaporean and Indian companies.
To talk about the rules, Nepalese financial institutions are prohibited to cast off their investments in the transnational company¿s financial instruments. But ¿rules are to break¿ and violating the so called rules, banks back home have invested millions of dough¿s overseas.
Lists of companies with their respective international investments are presented in the table given below:
As per the figure above, NMB Bank Ltd. has invested around 50% of its total investments in international securities. However, Nepal Credit & Commercial Bank Ltd. has 86 million international investments which is only 0.15% of its total investment.
In the situation when the world¿s largest economies are in tailspin and the global economic slowdown are blowing rapidly on the face of the Asian market the safety of international investments has grown up as a major issue.
Source:
Naya Patrika
Read More
To talk about the rules, Nepalese financial institutions are prohibited to cast off their investments in the transnational company¿s financial instruments. But ¿rules are to break¿ and violating the so called rules, banks back home have invested millions of dough¿s overseas.
Lists of companies with their respective international investments are presented in the table given below:
Banks | Investments (in 100 thousand) |
| Nepal Bank Ltd. | 25997 |
| Rastriya Banijya Bank | 618555 |
| Nabil Bank Ltd. | 25585 |
| Nepal Investment Bank Ltd. | 73454 |
| Standard Chartered Bank Ltd. | 46412 |
| Nepal SBI Bank Ltd. | 1050 |
| Nepal Bangladesh Bank Ltd. | 2525 |
| Nepal Credit & Commercial Bank Ltd. | 864 |
| Lumbini Bank Ltd. | 9583 |
| Nepal Industrial & Commercial Bank Ltd. | 6778 |
| Agriculture Development Bank Ltd | 5796 |
| NMB Bank Ltd. | 279901 |
As per the figure above, NMB Bank Ltd. has invested around 50% of its total investments in international securities. However, Nepal Credit & Commercial Bank Ltd. has 86 million international investments which is only 0.15% of its total investment.
In the situation when the world¿s largest economies are in tailspin and the global economic slowdown are blowing rapidly on the face of the Asian market the safety of international investments has grown up as a major issue.
Source:
Naya Patrika
Read More
Nepali economy feels chill of global crisis
Though Nepal is not closely integrated into the global economy, the ongoing world financial crisis has taken a heavy toll on commodity prices. Prices of major construction materials have dropped significantly over the past 10 weeks.
"A sharp fall in commodity prices has resulted in losses amounting to around Rs. 7 billion over the last 10 months," Rajendra Khetan, an industrialist, told a program on the global financial crisis Monday.
"Construction materials like steel, plastic and copper have plunged and laid a heavy liability on the shoulders of businessmen," added Khetan. Last year, the price of construction materials had gone up to record highs driving up building costs almost twofold.
Real estate, commodities and stocks have been most affected by the financial crisis whose epicentre is the U.S.A. Khetan warned that negative impacts would be seen in exports, remittances and tourism besides investment in big projects in Nepal as a result of the slowdown.
Prof. Bishowmbher Pyakurel, an economist, said real estate was more vulnerable to the impact of the global crisis as commercial banks had invested about 10 percent of their total portfolio in this sector. He added that foreign direct investment in Nepal would also be affected due to an adverse situation in the capital market which is the major source of capital for investors. Radhes Panta, president of the Bankers' Association, claimed that investments made by Nepali banks were not at risk as they were adhering to strict regulations and maintaining adequate transparency.
Madhukar Shamser Rana, an economist, said the global meltdown had created ideological, social and geopolitical impacts across the world.
Source:
Ekantipur
Read More
"A sharp fall in commodity prices has resulted in losses amounting to around Rs. 7 billion over the last 10 months," Rajendra Khetan, an industrialist, told a program on the global financial crisis Monday.
"Construction materials like steel, plastic and copper have plunged and laid a heavy liability on the shoulders of businessmen," added Khetan. Last year, the price of construction materials had gone up to record highs driving up building costs almost twofold.
Real estate, commodities and stocks have been most affected by the financial crisis whose epicentre is the U.S.A. Khetan warned that negative impacts would be seen in exports, remittances and tourism besides investment in big projects in Nepal as a result of the slowdown.
Prof. Bishowmbher Pyakurel, an economist, said real estate was more vulnerable to the impact of the global crisis as commercial banks had invested about 10 percent of their total portfolio in this sector. He added that foreign direct investment in Nepal would also be affected due to an adverse situation in the capital market which is the major source of capital for investors. Radhes Panta, president of the Bankers' Association, claimed that investments made by Nepali banks were not at risk as they were adhering to strict regulations and maintaining adequate transparency.
Madhukar Shamser Rana, an economist, said the global meltdown had created ideological, social and geopolitical impacts across the world.
Source:
Ekantipur
Read More
Revenue up 35.5 pc
Revenue collection increased by 35.5 percent during first four months of the current fiscal year, an official at the Ministry of Finance said Monday.
According to revenue secretary Krishna Hari Baskota, the government collected Rs. 32.97 billion in revenue between mid-July and mid-Nov, which is Rs. 8.62 billion more it did during the corresponding period last year. During the first four months of Fiscal Year 2007/08, revenue collection stood at Rs. 22.33 billion, a 16.3 percent rise compared to a year earlier.
Baskota attributed the rise in revenue to active patrolling along the border, mobilisation of customs officials through the Chief District Officers in 17 bordering districts and vigorous monitoring by the Inland Revenue Department to execute effective billing systems in the market.
Source:
Ekantipur
Read More
According to revenue secretary Krishna Hari Baskota, the government collected Rs. 32.97 billion in revenue between mid-July and mid-Nov, which is Rs. 8.62 billion more it did during the corresponding period last year. During the first four months of Fiscal Year 2007/08, revenue collection stood at Rs. 22.33 billion, a 16.3 percent rise compared to a year earlier.
Baskota attributed the rise in revenue to active patrolling along the border, mobilisation of customs officials through the Chief District Officers in 17 bordering districts and vigorous monitoring by the Inland Revenue Department to execute effective billing systems in the market.
Source:
Ekantipur
Read More
Inflation hits 14pc, wages up 9pc
Driven by a significant rise in food and beverage prices besides non-food and services, inflation based on consumer price index swelled to 14.1 percent in mid-October 2008 against 6.3 percent during the corresponding period in the previous year.
Inflation was higher in mid-October than in mid-September when prices had gone up by 13.5 percent.
Nepal Rastra Bank (NRB) said in a statement on Monday that inflation had more than doubled in the review period this year as the food and beverage group witnessed a 15.2 percent rise in prices and the non-food and service group went up by 12.9 percent.
Their prices had gone up by 9.5 percent and 2.9 percent respectively during the period last year.
Sugar products became dearer by 39.5 percent while the price of oil and ghee-based products shot up by 35.4 percent. Sugar had gone down by 18.4 percent in the review period last year. Oil and ghee had witnessed a price rise of 12.8 percent.
The price index of transport and communication and building materials soared by 23.1 and 18.3 percent respectively this year against minus 0.5 and 2.5 percent last year.
Core inflation rose to 13.1 percent from 4.7 percent during the review period a year ago, NRB said.
However, the overall wholesale price inflation moderated to 9.3 percent in mid-October this year against 10.3 percent a year ago. The moderation was caused mainly by a decline in the prices of cash crops, fruits and vegetables despite a sharp price rise in imported commodities. This year, the price of agricultural commodities fell by 0.5 percent compared to 14.1 percent last year.
Among imported goods, petroleum products and coal went up 39.4 percent while vehicle and machinery prices increased by 30.4 percent.
With regard to domestic manufactured goods, food-related products and construction materials soared by 21.5 and 18.9 percent respectively. Their prices had risen by 5.9 and 15.5 percent last year.
The overall index of salaries and wages rose by 9.1 percent in the review period this year against 11.9 percent last year.
Source:
Ekantipur
Read More
Inflation was higher in mid-October than in mid-September when prices had gone up by 13.5 percent.
Nepal Rastra Bank (NRB) said in a statement on Monday that inflation had more than doubled in the review period this year as the food and beverage group witnessed a 15.2 percent rise in prices and the non-food and service group went up by 12.9 percent.
Their prices had gone up by 9.5 percent and 2.9 percent respectively during the period last year.
Sugar products became dearer by 39.5 percent while the price of oil and ghee-based products shot up by 35.4 percent. Sugar had gone down by 18.4 percent in the review period last year. Oil and ghee had witnessed a price rise of 12.8 percent.
The price index of transport and communication and building materials soared by 23.1 and 18.3 percent respectively this year against minus 0.5 and 2.5 percent last year.
Core inflation rose to 13.1 percent from 4.7 percent during the review period a year ago, NRB said.
However, the overall wholesale price inflation moderated to 9.3 percent in mid-October this year against 10.3 percent a year ago. The moderation was caused mainly by a decline in the prices of cash crops, fruits and vegetables despite a sharp price rise in imported commodities. This year, the price of agricultural commodities fell by 0.5 percent compared to 14.1 percent last year.
Among imported goods, petroleum products and coal went up 39.4 percent while vehicle and machinery prices increased by 30.4 percent.
With regard to domestic manufactured goods, food-related products and construction materials soared by 21.5 and 18.9 percent respectively. Their prices had risen by 5.9 and 15.5 percent last year.
The overall index of salaries and wages rose by 9.1 percent in the review period this year against 11.9 percent last year.
Source:
Ekantipur
Read More
CBIL shares
Citizens Bank Inter national Ltd (CBIL) is going to float shares worth Rs 300 million among the general people. According to a press statement, the bank will provide the facility of zero balance account to those willing to buy the shares but who do not have an ac count at the bank.
Source: THT
Read More
Source: THT
Read More
NBL to get its core team
Nepal Bank Ltd (NBL) — the oldest bank under Nepal rastra Bank's management at present — will soon get a chief executive officer (CEO) and a managerial team.
"A committee formed under Finance Minister Dr Baburam Bhattarai will soon bring out a blueprint of NBL's future course," said acting executive director of the central bank's supersivion department Narayan Poudel.
Confusion over the future of Nepal's first bank is affecting its employees, said bank employees' union leaders today while speaking on the occasion of the bank's 72nd anniversary. It was established in 1936.
"Let there be no confusion over the issue of management," assured Dr Bhattarai. "We are working on the modalities of how to run the institution that is an epitome of Nepal's entry into the era of modern industrial capitalism," He added that the finance ministry was also seriously working on short-middle-and-long term policies for its development.
"The bank will get a professional managerial team. However, it should focus its investments on infrastructure, industries and productive sectors instead of unproductive sectors for short-term gains," Dr Bhattarai suggested. He also urged the employess to identify and help punish those trying to push the bank into the red.
Speaking on the occasion, union leaders raised questions over the financial sector reform programme also. The bank had a foreign consultant under the financial reform programme, some 16 months ago, to rescue it. "The foreign management under the financial sector reform programme brought about some positive changes," said Poudel.
Agreed Dr Binod Atreya, coordinator of the NRB-induced three-member management team that is looking after the bank since the last 16 months, "At least 44 of the NBL's 99 branches are computerised. NBL is providing all modern banking facilities like e-banking and SMS banking, and will soon install ATMs also." The bank's NPA has reduced to 8.33 per cent in the first quarter of this fiscal year from 13.44 per cent in the same period the last fiscal. It has also posted more than Rs 520 million net profit by the end of the fiscal year 2007-08.
NBL has 10 per cent share (Rs 42 billion) in the total deposit of 25 commercial banks and that stands at Rs 426 billion. However, it has a meagre share of five per cent (Rs 17 billion) in the total lending of Rs 296 billion of all the commercial banks.
There are 25 commercial banks, 59 development banks, 78 finance companies, five rural development banks and many cooperatives.
Source:
THT
Read More
"A committee formed under Finance Minister Dr Baburam Bhattarai will soon bring out a blueprint of NBL's future course," said acting executive director of the central bank's supersivion department Narayan Poudel.
Confusion over the future of Nepal's first bank is affecting its employees, said bank employees' union leaders today while speaking on the occasion of the bank's 72nd anniversary. It was established in 1936.
"Let there be no confusion over the issue of management," assured Dr Bhattarai. "We are working on the modalities of how to run the institution that is an epitome of Nepal's entry into the era of modern industrial capitalism," He added that the finance ministry was also seriously working on short-middle-and-long term policies for its development.
"The bank will get a professional managerial team. However, it should focus its investments on infrastructure, industries and productive sectors instead of unproductive sectors for short-term gains," Dr Bhattarai suggested. He also urged the employess to identify and help punish those trying to push the bank into the red.
Speaking on the occasion, union leaders raised questions over the financial sector reform programme also. The bank had a foreign consultant under the financial reform programme, some 16 months ago, to rescue it. "The foreign management under the financial sector reform programme brought about some positive changes," said Poudel.
Agreed Dr Binod Atreya, coordinator of the NRB-induced three-member management team that is looking after the bank since the last 16 months, "At least 44 of the NBL's 99 branches are computerised. NBL is providing all modern banking facilities like e-banking and SMS banking, and will soon install ATMs also." The bank's NPA has reduced to 8.33 per cent in the first quarter of this fiscal year from 13.44 per cent in the same period the last fiscal. It has also posted more than Rs 520 million net profit by the end of the fiscal year 2007-08.
NBL has 10 per cent share (Rs 42 billion) in the total deposit of 25 commercial banks and that stands at Rs 426 billion. However, it has a meagre share of five per cent (Rs 17 billion) in the total lending of Rs 296 billion of all the commercial banks.
There are 25 commercial banks, 59 development banks, 78 finance companies, five rural development banks and many cooperatives.
Source:
THT
Read More
NEPSE lists more RMBFL shares
Nepal Stock Exchange (NEPSE) Friday listed 615,843 units of ordinary shares of Royal Merchant Banking and Finance Ltd. (RMBFL) Issuing a statement, RMBFL said it now has 1,220,000 units of its shares listed at Nepal's sole secondary market with a face value and paid-up value of Rs. 100 per unit. The company also distributed rights issues in the ratio of 1:1 in Fiscal Year 2007/08, it said.
Source:
eKantipur
Read More
Source:
eKantipur
Read More
Central Finance to give dividends
A board meeting of Central Finance Ltd (CFL) decided to distribute bonus shares and cash dividends from its profit of the fiscal year 2007-08. The bonus shares will be granted after permission from Nepal Rastra Bank. It gained an operating profit of Rs 43.2 million in the fiscal 2007-08 while in the current fiscal 2008-09 it collected a deposit of Rs 900 million along with an investment of Rs 800 million.
Source: THT
Read More
Source: THT
Read More
Rights shares listed
Nepal Stock Exchange Ltd listed 6,15,843-unit right share of Royal Merchant Banking and Finance Ltd (RMBFL). According to a press statement, it made a total of 12,20,000-unit share listed at the Nepse. During fiscal year 2007-08 it distributed 1:1 rights share.
Source: THT
Read More
Source: THT
Read More
Wednesday, December 10, 2008
Special General Meeting: Valley
Valley Finance Ltd. has announced its special general meeting to be held on 24th December 2008 (2065 Poush 9).
Read More
Read More
Promoter Share Sale Notice: PFLBS
Patan Finance Ltd. has announced the sale of its promoter share.
Read More
Read More
Right Share Sale Notice: KFL
Kathmandu Finance Ltd. has published a notice for the sale of remaining 11113 right shares separated for the promoters.
Read More
Read More
Right Share Issue:BBBLN
Bageshwori Development Bank Ltd.is issuing 2:1 right share from today.
Read More
Read More
Right Share Issue: KMBF
KIST Merchant Bank. & Fin Ltd. is issuing 1:1.50 right share from Nov-09-08 to Dec-14-08.(2065 Kartik 24 to 2065 Mangshir 29 )
Read More
Read More
Upcoming 1st AGM: Mahakali
Mahakali Bikas Bank Ltd. has announced its forthcoming 1st annual general to be held on 2nd January 2008 (2065 Poush 18).
Read More
Read More
Upcoming 2nd AGM: Sewa
Sewa Bikash Bank Ltd. has announced its forthcoming 2nd annual general meeting to be held on 27th December 2008 (2065 Poush 12).
Read More
Read More
Upcoming 34th AGM: SHL
Soaltee Hotel Ltd. has announced its forthcoming 34th annual general meeting to be held on 8th January 2008 (2065 Poush 24).
Read More
Read More
General Share Certificate Distribution: Triveni
Triveni Bikas Bank Ltd. is distributing its general share certificate from 7th December 2008 (2065 Mangshir 22).
Read More
Read More
Bonus Share Certificate Distribution: SIFC
Shree Investment Finance Co. Ltd. is distributing its bonus share certificate from 7th December 2008 (2065 Mangshir 22).
Read More
Read More
Right Share Issue: PFL
Pokhara Finance Ltd. is issuing 1:3 right share from 29th December 2008 to 1st February 2009 (2065 Poush 14 to 2065 Magh 19).
Read More
Read More
Upcoming 15th AGM: SBI
Nepal SBI Bank Ltd. has announced its forthcoming annual general meeting to be held on 26th December 2008 (2065 Poush 11)
Read More
Read More
Bonus Share Certificate Distribution: NABIL
Nabil Bank Ltd. is distributing 60% cash dividend and 40% bonus share from 30th November 2008 (2065 Mangshir 15).
Read More
Read More
Special General Meeting: Prime
Prime Bank Ltd. has announced its special general meeting to be held on 15th December 2008 (2065 Mangshir 30).
Read More
Read More
Right Share Certificate Distribution: YFL
Yeti Finance Ltd. distributed its right share certificate from 1st December 2008 (2065 Mangshir 16).
Read More
Read More
Right Share Allotment Notice: NFC
National Finance Ltd. has allotted its right shares on 25th November 2008 (2065 Mangshir 10).
Read More
Read More
Right Share Certificate Distribution: HGI
Himalayan General Insurance Co. Ltd. is distributing its right share certificate from 1st December 2008 (2065 Mangshir 16).
Read More
Read More
Right Share Certificate Distribution: NFL
Narayani Finance Ltd. is distributing its right share certificate from 3rd December 2008 (2065 Mangshir 18).
Read More
Read More
Upcoming 4th AGM: Biratlaxmi Bikash Bank
Biratlaxmi Bikash Bank Ltd. has announced its annual general meeting to be held on 27th December 2008 (2065 Poush 12).
Read More
Read More
Special General Meeting: Samjhana Finance
Samjhana Finance Co. Ltd. has announced its special general meeting to be held on 19th December 2008 (2065 Poush 4).
Read More
Read More
Upcoming 1st AGM: Elite
Elite Capital Ltd. has announced its forthcoming first annual general meeting to be held on 15th December 2008 (2065 Mangshir 30).
Read More
Read More
Right Share Issue Date Extended :UFCL
Union Finance Co. Ltd. has extended its right share issue date upto 15th December 2008 (2065 Mangshir 30).
Read More
Read More
Upcoming 1st AGM: Surya
Surya Life Insurance Co. Ltd. has announced its forthcoming annual general meeting to be held on 17th December 2008 (2065 Poush 2).
Read More
Read More
Upcoming 2nd AGM: Kamana
Kamana Bikash Bank Ltd. has announced its forthcoming annual general meeting to be held on 20th December 2008 (2065 Poush 5).
Read More
Read More
Upcoming 14th AGM: BOK
Bank Of Kathmandu Ltd. has announced its forthcoming 14th annual general meeting to be held on 21st December 2008 (2065 Poush 6).
Read More
Read More
Upcoming 1st AGM: Unique
Unique Financial Institution Ltd. has announced its forthcoming 1st annual general meeting to be held on 13th December 2008 (2065 Mangshir 28)
Read More
Read More
Right Share Issue: Bageshwori Development Bank Ltd
Bageshwori Development Bank Ltd. is issuing 2:1 right share from 9th December 2008 to 12th January 2009 (2065 Mangshir 24 to 2065 Poush 28).
Read More
Read More
Upcoming 14th AGM: Narayani Finance Ltd
Narayani Finance Ltd. has announced its forthcoming 14th annual general meeting to be held on 24th December 2008 (2065 Poush 9)
Read More
Read More
Upcoming 5th AGM: Pashupati Development Bank
Pashupati Development Bank Ltd.has announced its Five annual general meeting to be held on 13th December 2008 (2065 Mangshir 28)
Read More
Read More
Right Share Issue: Nepal Bangladesh Bank
Nepal Bangladesh Bank Ltd.is issuing 1:1.50 right share from 8th December 2008 (2065 Mangshir 24) to the share holders upto 11th January 2009 (2065 Push 27).
Read More
Read More
Upcoming 11th AGM: Nepal Industrial and Commercial Bank
Nepal Industrial and Commercial Bank Ltd. has announced its forthcoming eleventh annual general meeting to be held on 17th December 2008 (2065 Poush 2).
Read More
Read More
Upcoming 10th AGM: Nirdhan Utthan Bank
Nirdhan Utthan Bank Ltd. has announced its tenth annual general meeting to be held on 12th December 2008 (2065 Mangshir 27).
Read More
Read More
Subscribe to:
Posts (Atom)
If you are interested to publish your own articles and stories related to stock exchange, then you may submit your articles via our email. If you are interested to display your picture, then you may send your passport size picture. Our contact email address is: 
