Good news for depositors. Their deposit in banks and financial institutions will be insured soon. Beema Samitee (Insurance Board-IB) is initiating the establishment of a strong mechanism to guarantee deposits with banks and finance companies. IB will form a deposit insurance mechanism, said IB chairman Dr Phatte Bahadur KC. "We have finished two rounds of talk with stakeholders," he added. Budget 2009-10 announced the formation of a mechanism to safeguard deposits up to Rs 2,00,000. The move was started after the failure of Nepal Development Bank Ltd last year.
IB, insurance companies, banks and finance companies have prepared a draft to secure small deposits and it is under discussion among stakeholders. "IB is welcoming comments and suggestions from the public also," said IB spokesperson Shekhar Kumar Aryal. According to Aryal, the draft has four areas of concentration ¿ protection of depositors, stability in the financial system, promotion of competitiveness in the financial sector and financial crisis rescue. Deposit and credit guarantee mechanism was first established in the United States in 1934 to safe-guard deposits in recession. Currently, 103 countries are safeguarding deposits of small to big depositors through the mechanism. "There are different mechanisms as per the needs of different countries," an officer of Deposit Insurance & Credit Guarantee Corporation Pvt Ltd said, "But it must be strong with regulatory powers."
The Nepali private sector has been providing credit protection services to banks since 1995 but Deposit Insurance & Credit Guarantee Corporation Pvt Ltd's business is limited to few banks due to lack of legal support. "If we want to cover all banks and financial institutions, a new mechanism must be backed by law," the officer said.
Bhakti Bilash Pandey of Nepal Finance Companies Association called for representation of all stakeholders in the mechanism. "Nepal Rastra Bank (NRB), banks and financial institutions and the government must be on the board," he said adding that without a guarantee from the government it cannot work properly. Devendra Gautam, assistant director of NRB, echoed Pandey and said such a mechanism cannot run without the government's guarantee on deposits.
The draft has proposed Rs 2 billion capital base for the mechanism with Rs 1 billion paid-up capital. It has proposed to sell shares equal to Rs 710 million to 26 commercial banks, 10 per cent shares to the government and 10 per cent shares to NRB. The share of finance and insurance companies is yet to be decided.
Source:THT
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Saturday, January 16, 2010
NRB Left NBB Management
Nepal Bangladesh Bank Limited has concluded its 12th, 13th, 14th and 15th annual general meeting at Rastriya Naach Ghar on 13th January 2010 (2066 Poush 29). The NRB has handed over the management of bank to NB bank. The New board will formally operate its operation from tomorrow. The AGM has appointed Baskota and Company as its auditor for the current fiscal year. The new board consists Mohmad Ufar Rahman, Ifardin Ahamad, Laxmi Bahadur Shreshta, Tirhta Man Shakya, Indra Bahadur Thapa, Bishnu Nath Adhikari and Amrit Nath Regmi.
According to the annual financial report (2065/66) of the bank, it has Rs. 1.8603 billions share capital and holds Rs. (748.0725) millions in its reserve and surplus. Likewise, it had collected Rs. 9.9976 billions as deposits. The operating profit of the bank was Rs. 710.301 million and net profit at the close of fiscal year was Rs.2.1581 billion. The hefty surge in net profit for the previous fiscal year was primarly due to the collection from write back from provision of possible losses.
There was in fact, vary perception regarding the management of NRB and its role to handle the NB Bank. Some blamed the leadership, corporate and governance for the present situation of NBB while some said it's due to unclear and controversial provision of NRB. However, the new management has given words to present the dividend in near future which is bunged almost for five consecutive years.
Source:Jamb News Service
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According to the annual financial report (2065/66) of the bank, it has Rs. 1.8603 billions share capital and holds Rs. (748.0725) millions in its reserve and surplus. Likewise, it had collected Rs. 9.9976 billions as deposits. The operating profit of the bank was Rs. 710.301 million and net profit at the close of fiscal year was Rs.2.1581 billion. The hefty surge in net profit for the previous fiscal year was primarly due to the collection from write back from provision of possible losses.
There was in fact, vary perception regarding the management of NRB and its role to handle the NB Bank. Some blamed the leadership, corporate and governance for the present situation of NBB while some said it's due to unclear and controversial provision of NRB. However, the new management has given words to present the dividend in near future which is bunged almost for five consecutive years.
Source:Jamb News Service
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ILFC Headed toward Commercial Bank
International Leasing and Finance Limited have concluded its 14th annual general meeting at United World Trade Center on 13th January 2010 (2066 Poush 29). The AGM has approved 26.62% cash dividend to its shareholder from the profit of fiscal year 2065/66. Earlier, the bank has issued right share in the ratio of 1:2.1.
The bank has current paid up capital of Rs. 648 million and after the issue of right share it will fulfill Rs. 2 billion required to upgrade to the commercial bank. During the fiscal year 2065/66, the finance company has earned Rs. 81.641 million operating profit and Rs. 223.702 million net profit. The surge in net profit was primarily due to sell of land of Rs. 267.839 million.
Source:Jamb News Service
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The bank has current paid up capital of Rs. 648 million and after the issue of right share it will fulfill Rs. 2 billion required to upgrade to the commercial bank. During the fiscal year 2065/66, the finance company has earned Rs. 81.641 million operating profit and Rs. 223.702 million net profit. The surge in net profit was primarily due to sell of land of Rs. 267.839 million.
Source:Jamb News Service
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NDEP Concludes 3rd AGM
NDEP Bank Limited has concluded its third annual general meeting today (13th January 2010). The AGM was started at 11 AM in Nepal Pragya Pratishthan of Kamaladi. The AGM has approved 6.667% bonus share to its shareholders from the profit of fiscal year 2065/66. Similarly, the meeting has approved to change the name of company.
According to the annual financial report (2065/66) of the bank, it has Rs. 320 million share capital and holds Rs. 210.627 million in its reserve and surplus. Likewise, it had collected Rs. 1.832225 billion as deposits and has 38% of investment towards real estate. The operating profit of the bank was Rs. 35.952 million and net profit at the close of fiscal year was Rs. 32.128 millions.
Source:Jamb News Service
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According to the annual financial report (2065/66) of the bank, it has Rs. 320 million share capital and holds Rs. 210.627 million in its reserve and surplus. Likewise, it had collected Rs. 1.832225 billion as deposits and has 38% of investment towards real estate. The operating profit of the bank was Rs. 35.952 million and net profit at the close of fiscal year was Rs. 32.128 millions.
Source:Jamb News Service
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SBL to issue bonus shares
The 8th Annual General Meeting (AGM) of Siddhartha Bank Limited (SBL) has endorsed the decision to issue 15 percent bonus shares. With the issuance of the said bonus shares, the bank's paid-up capital will be at Rs. 1.9 billion. In the first five months of the current fiscal year bank's deposit base has reached Rs. 16.99 billion and the loan portfolio stands at Rs. 16.28 billion. In the same period, the operating profit of the bank stood at Rs. 200.02 million.
Source:eKantipur
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Source:eKantipur
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Himalayan Bank in Baglung
Himalayan Bank Limited opened its 26th branch in Baglung on Tuesday. Manoj Bahadur Shrestha, chairman of the bank, inaugurated the branch, says a press statement issued by the bank. On the occasion, Shrestha said the bank collected a deposit of Rs 37.55 billion and issued loan amounting to Rs 28.92 billion during the first five months of the fiscal year 2009/10.
The new branch is providing modern banking services, including Himal Saving Account, Himal Remit Service, ATM, Travel Check, Letter of Credit, loan for small and medium industries and vehicle loans, according to the release
Source:Republica
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The new branch is providing modern banking services, including Himal Saving Account, Himal Remit Service, ATM, Travel Check, Letter of Credit, loan for small and medium industries and vehicle loans, according to the release
Source:Republica
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NRB bars promoters to buy public shares
Nepal Rastra Bank (NRB) has imposed a restriction for promoters, along with their family members, of banks and financial institutions to buy shares allocated for public issue.
Issuing a circular on Tuesday, the central bank clarified that the new restriction would, however, not prevent the promoters and their family members to buy public shares which are left unsubscribed within specified application deadline.
The financial regulator also stated that the promoters or promoter shareholders have been restricted from filing candidacy for promoter of other company groups than the companies promoted by them.
Source:Republica
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Issuing a circular on Tuesday, the central bank clarified that the new restriction would, however, not prevent the promoters and their family members to buy public shares which are left unsubscribed within specified application deadline.
The financial regulator also stated that the promoters or promoter shareholders have been restricted from filing candidacy for promoter of other company groups than the companies promoted by them.
Source:Republica
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Lets build economy: FM
Every Nepali should be serious about making the economy stronger, said Finance Minister Surendra Pandey. He said this while distributing PAN card, an unique identification number that identifies each taxpayer uniquely, to high-level government officials, police officers and media persons at Dharan today.
The government will make PAN card essential for all government employees, he said, adding that those failing to climb aboard the PAN card bandwagon will not receive their salary. "We are bringing in a policy that bars government officials, who do not obtain PAN card, from receiving allowances they get while participating in various seminars organised at the government and non-government levels," he said. Saying that only 20 per cent population of the country is paying tax, minister Pandey said the government is trying to bring every Nepali in the tax net.
Source:THT
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The government will make PAN card essential for all government employees, he said, adding that those failing to climb aboard the PAN card bandwagon will not receive their salary. "We are bringing in a policy that bars government officials, who do not obtain PAN card, from receiving allowances they get while participating in various seminars organised at the government and non-government levels," he said. Saying that only 20 per cent population of the country is paying tax, minister Pandey said the government is trying to bring every Nepali in the tax net.
Source:THT
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Liquidity Crisis: Higher Import Duty Likely
The government plans to hike the customs duty on major goods to control soaring imports if the monetary measures taken by Nepal Rastra Bank (NRB) fails to solve the liquidity crisis. Rising imports against declining exports have been cited as the major reason behind the persisting cash crunch.
Senior economic advisor at the Finance Ministry Keshav Acharya said that the government would take fiscal measures including hiking the duty on gold at first and other commodities whose volume surged one after another calculating the situation to rescue the economy from a rising trade deficit. "We have not finalised the goods on which we will be imposing extra duty at the moment," he said.
Exports declined by 23.7 percent against a rise in imports by 27.8 percent during the four months of the current fiscal year leading to a trade deficit of 48 percent, as per the latest NRB report on the country's macro-economic situation.
Terming gold imports as the major factor behind the surge in total imports that stood at Rs. 25 billion during the last five months as per the data of the Department of Customs, the central bank took stringent measures including forcing importers to deposit at least 40 percent cash of the amount sought for bank guarantee. Earlier, importers could import gold on the basis of a bank guarantee even if they didn't have cash at hand.
The central bank has also directed banks and financial institutions not to surpass the loans and advances 80 percent of total deposits and primary capital in order to force them to maintain comfortable liquidity. Another major decision taken by the central bank is the capping of loans in the real estate sector forcing them to maintain the loan exposure to real estate under 40 percent by the current fiscal year.
NRB has already injected Rs. 20 billion in the market through repo (central bank injecting money to the banks against their treasury bills) and outright purchase over the last two months. About Rs. 5 billion was injected into banking system through repo on Sunday.
NRB's executive director Lila Prakash Sitaula said that the latest injection of liquidity by the central bank eased the crisis and the interest rates of inter-bank lending and standing liquidity facility (NRB giving money to banks to address short-term liquidity problems) went down to around 10 and 11 percent respectively from above 12 and 14 percent in the past. He said that the various measures taken by the central bank in recent days would not let banks face an acute cash crunch in the coming days.
But chief executive officer of Kumari Bank Radhesh Pant said that the banks which didn't own much treasury bills (TBs) to offer to the central bank for repo were still in a cash crunch, whereas those having TBs and liquidity offered very few interest rates resulting in low liquidity in the banking system. "That's why inter-bank lending has not come down to a comfortable level," he said.
Source:eKantipur
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Senior economic advisor at the Finance Ministry Keshav Acharya said that the government would take fiscal measures including hiking the duty on gold at first and other commodities whose volume surged one after another calculating the situation to rescue the economy from a rising trade deficit. "We have not finalised the goods on which we will be imposing extra duty at the moment," he said.
Exports declined by 23.7 percent against a rise in imports by 27.8 percent during the four months of the current fiscal year leading to a trade deficit of 48 percent, as per the latest NRB report on the country's macro-economic situation.
Terming gold imports as the major factor behind the surge in total imports that stood at Rs. 25 billion during the last five months as per the data of the Department of Customs, the central bank took stringent measures including forcing importers to deposit at least 40 percent cash of the amount sought for bank guarantee. Earlier, importers could import gold on the basis of a bank guarantee even if they didn't have cash at hand.
The central bank has also directed banks and financial institutions not to surpass the loans and advances 80 percent of total deposits and primary capital in order to force them to maintain comfortable liquidity. Another major decision taken by the central bank is the capping of loans in the real estate sector forcing them to maintain the loan exposure to real estate under 40 percent by the current fiscal year.
NRB has already injected Rs. 20 billion in the market through repo (central bank injecting money to the banks against their treasury bills) and outright purchase over the last two months. About Rs. 5 billion was injected into banking system through repo on Sunday.
NRB's executive director Lila Prakash Sitaula said that the latest injection of liquidity by the central bank eased the crisis and the interest rates of inter-bank lending and standing liquidity facility (NRB giving money to banks to address short-term liquidity problems) went down to around 10 and 11 percent respectively from above 12 and 14 percent in the past. He said that the various measures taken by the central bank in recent days would not let banks face an acute cash crunch in the coming days.
But chief executive officer of Kumari Bank Radhesh Pant said that the banks which didn't own much treasury bills (TBs) to offer to the central bank for repo were still in a cash crunch, whereas those having TBs and liquidity offered very few interest rates resulting in low liquidity in the banking system. "That's why inter-bank lending has not come down to a comfortable level," he said.
Source:eKantipur
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NNFC in verse to be Development Bank
The first AGM of Narayani National Finance has been completed after the merger of Narayani Finance and National Finance. Both companies have presented their financial statement separately as they merge to become Narayani National Finance in 17 Kartik.
It was declared that Narayani Finance and National Finance have made Rs. 42.254 million and Rs. 34.040 million net profit respectively.
The AGM also concluded to distribute the dividend separately as the merger has been took place after the end of fiscal year. The shareholder of Narayani Finance will entitled to get 12.63% dividend and National finance will provide 13.68 % dividend.
After the merger of two companies, it is decide to give 2:1 right share. The present total paid up capital of the company is Rs. 433.30 million which will be increased to Rs. 650 million. The AGM has also appointed the new management team as Ram Krishna Manandhar, Mahesh Lal Pradhan, Laxmi Das Manandhar and Suresh Krishna Pudashini were appointed.
At the end of first quarter of current fiscal year the company has collected total deposit of Rs. 1.8464 billion, total loan was Rs. 1.9324 billion and operational profit is Rs. 26.311 million. The finance company is operating through 5 regional offices after the merger. In this coming fiscal year it is decided to open 3 new branches inside the Kathmandu valley and 2 outside the Kathmandu valley. Similarly, it is planning to buy new software and aspire to provide ABBS as well as ATM services to its customer.
Source:Jamb News Service
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It was declared that Narayani Finance and National Finance have made Rs. 42.254 million and Rs. 34.040 million net profit respectively.
The AGM also concluded to distribute the dividend separately as the merger has been took place after the end of fiscal year. The shareholder of Narayani Finance will entitled to get 12.63% dividend and National finance will provide 13.68 % dividend.
After the merger of two companies, it is decide to give 2:1 right share. The present total paid up capital of the company is Rs. 433.30 million which will be increased to Rs. 650 million. The AGM has also appointed the new management team as Ram Krishna Manandhar, Mahesh Lal Pradhan, Laxmi Das Manandhar and Suresh Krishna Pudashini were appointed.
At the end of first quarter of current fiscal year the company has collected total deposit of Rs. 1.8464 billion, total loan was Rs. 1.9324 billion and operational profit is Rs. 26.311 million. The finance company is operating through 5 regional offices after the merger. In this coming fiscal year it is decided to open 3 new branches inside the Kathmandu valley and 2 outside the Kathmandu valley. Similarly, it is planning to buy new software and aspire to provide ABBS as well as ATM services to its customer.
Source:Jamb News Service
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