Nepal Stock Exchange News

Kasthamandap Development Bank IPO Share Allotment Result

noreply@blogger.com (Rabindra Bhattarai) — Wed, 20 Jan 2010 10:43:00 +0000

Kasthamandap Development Bank Ltd. has allotted its ordinary share on 19 January 2010 (2066 Magh 5). The allotment result can be downloaded from here link given below:

Download the IPO Share Allotment Result

Source: Jamb News Service

LFLC declared 25% bonus share and 1:1 right share.

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:34:00 +0000

Lumbini Finance & Leasing Co. Ltd has concluded its 14th annual general meeting at Pragya Bhawan, Kamladi, Kathmandu on 14th January 2010 (2066 Poush 30). As per the annual financial report (2065/66) of the finance company, it has Rs. 120 million share capital and had collected Rs. 1.0712 billion as deposits. The operating profit was Rs. 102.6716 million and net profit at the close of fiscal year was Rs 76.1216 million. It has also decided to provide 25% bonus share from the profit of fiscal year 2065/66 and thereafter issue right share in the ratio of 1:1.
Source:Jamb News Service

13th AGM of CFCL approved 15% bonus

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:33:00 +0000

Central Finance Limited has concluded its thirteen annual general meeting today (14th January 2010). The AGM was started at 11 AM in Lalitpur Bisal Bazar, Lalitpur. The AGM has approved 15% bonus share to its shareholders from the profit of fiscal year 2065/66.

According to the annual financial report (2065/66) of the bank, it has Rs. 126.8951 million share capital and holds Rs 44.845 million in its reserve and surplus. The operating profit of the bank was Rs. 44.070 million and net profit at the close of fiscal year was Rs. 28.252 millions.
Source:Jamb News Service

NEFL concludes its 4th AGM

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:33:00 +0000

Nepal Express Finance Limited has concluded its 4th annual general meeting today (14 January 2010). The AGM has decided to augment the paid up capital and authorized capital very soon.

The finance company that has a share capital of Rs. 80 million and Rs. 28.321 million reserves and surplus was able to collected deposits of Rs. 351.733 million where as invested Rs. 101 million. Likewise, the company has earned operating profit of Rs. 11.619 million and Rs. 7.390 million net profits during the fiscal year 2065/66.
Source:Jamb News Service

5th AGM of GDBNL

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:32:00 +0000

Gurkha Development Bank (Nepal) Ltd. has concluded its 5th annual general meeting at Rastriya Naach Ghar on 14th January 2010 (2066 Poush 30). According to the annual financial report (2065/66) of the bank, it has Rs. 596.718 million share capital and holds Rs. 93.4448 million in its reserve and surplus.

Likewise, it had collected Rs. 3.3662 billion as deposits and net profit at the close of fiscal year was Rs 49.627 million. It has also decided to provide 10% bonus share after the second week of Magh.
Source:Jamb News Service

GMFIL to give 10% bonus and 3:2 right shares

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:31:00 +0000

Guheshwori Merchant Banking and Finance Limited have completed its 8th annual general meeting today (14 January 2010). The AGM has approved 10 percent bonus share to the shareholder from the profit of fiscal year 2065/66, thereafter will issue 3:2 ratio of right share.

The company has also said that, the previous decision to balance the power ratio of company as for promoter shareholder 51% and 49% to public shareholder has successfully implemented during the year. Likewise, it has also decided to trade gold on latter days hence needed to be inclusion in MOA.

The finance company has paid up capital of Rs. 109.8111 million and holds Rs. 28.271 million in its reserve and surplus account. Likewise, during the fiscal year 2065/66, it had earned Rs. 19.867 million net profits and Rs. 30.689 million operating profit.
Source:Jamb News Service

Employees without PAN may not get salary: FM

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:31:00 +0000

Finance Minister Surendra Pandey on Wednesday directed all the government employees to register with permanent account number (PAN) for taxation purpose. He also said the government might freeze salary if the employees did not register with PAN.

Pandey was in Dharan on Wednesday to attend regional workshop on control of revenue leakage. "I will finalize the actions to be taken against the employees not complying with the mandatory PAN registration as soon as I return to Kathmandu," he said. To deal with the non-compliers, Pandey said the Ministry of Finance was mulling over initially halting the payment of meeting allowances that the employees are supposed to get. Ultimately it will go to the extent of halting payment of salary to the defaulters, he added. "A circular to this connection will be issued soon. Hence, I urge all the employees to comply with it," said Pandey.

On the occasion, the Finance Minister even distributed PAN to journalists and employees of various public and private institutions. He also appealed to the businessmen and all income earners to register with PAN, saying that it will help government know how individuals and firms are contributing in revenue mobilization. "By getting PAN number, you can get tax clearance certificate at one go, something which will establish your creditworthiness and enable you to enjoy special incentives from the state," he said.

Addressing the function, Pandey expressed his concerns over prevailing practice of undertaking realty transactions with heavy under-valuation. "To address this issue, we are discussing on a provision whereby the government can buy a land in case the deal is heavily under-valued by paying 5 percent additional amount to the seller," said Pandey.

The Finance Minister further said that the government was also discussing over annulling the existing provision that allows transfer of ownership as gifts. This provision frees both the donor and recipient from various tax liabilities. He further added that the government was also discussing on possibility of introducing health insurance scheme and education loans for certain targeted groups.
Source:Republica

Machhapuchchhre's AGM

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:30:00 +0000

The 11th annual general meeting of Machhapuchchhre Bank endorsed the annual report of the fiscal year 2008/09 on Wednesday. The bank had posted a profit of Rs. 123.3 million in the last fiscal year. In the first five months of the current fiscal year, the bank has made a net profit of Rs. 104.6 million. As of now, the bank is operating from 21 branches and has plans to add 10 more branches.
Source:eKantipur

NRB to monitor EPF, regulate CIT

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:29:00 +0000

The government on Wednesday decided to hand over the responsibility of monitoring Employees Provident Fund (EPF) and regulating Citizens' Investment Trust (CIT) to Nepal Rastra Bank (NRB). Wednesday's Cabinet meeting took the decision to this effect. The central bank now onwards will monitor EPF and regulate CIT.The decision came following the central bank's initiative and willingness to regulate both the institutions.

NRB on Dec. 9 had communicated to the Ministry of Finance (MoF) stating it was ready to regulate EPF and CIT in response to the ministry's call some four months ago that NRB regulate both the institutions. Though EPF and CIT both have huge resource mobilisation, both the institutions were self-regulated. EPF has mobilised about Rs. 80 billion and CIT about Rs. 16 billion.

According to EPF, about 50 percent of its money has gone to contributors, 35 percent is in fixed deposits, 8 percent in government bonds and 5 percent in project loans. CIT holds deposits of general public and government employees. It provides certain benefits to the public by investing the money in corporate shares, debentures and government securities.

Since law doesn't allow the central bank with the right to regulate EPF, the government has decided EPF only to be monitored by it. "Our main concern was whether the government's decision would be as per the law," said Ramesh Bhattarai, Administrator of EPF. "Today's cabinet decision shows we need not worry." The government had made a provision in the budget two years ago about letting the central bank regulate these two institutions, but was yet to materialise. An MoF official said that the proposal went to the Cabinet but was cancelled. Meanwhile, the Cabinet also decided to form a committee to recommend the new governor under the convernership of Finance Minister Surendra Pandey. However, consensus could not be forged among the committee members.

According to the Section 15 of Nepal Rastra Bank Act 2002, finance minister will be the convener of the committee. As per the Act, the three-member committee will recommend three names to the Cabinet. Tenure of Bhattarai ends in January.
Source:eKantipur

Economic crisis concerns Chaudhary

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:29:00 +0000

Lawmaker and industrialist Binod Chaudhary on Wednesday said that parliament was indifferent about the economic crisis and warned that the country could face a major disaster if no swift action was taken to address the issue. "We're talking about No Work No Pay for the workers who make just about Rs. 6000 per month and here in parliament, 90 percent of the lawmakers are usually absent," said Chaudhary while speaking at the Legislature-Parliament. "Does No Work No Pay applies to you or not?"

Chaudhary said that by opting to skip parliamentary sessions, the lawmakers were ignoring issues of national importance. Chaudhary reminded that sensing the potential economic crisis he had registered a resolution motion in the parliament a year ago. "Whoever is responsible must furnish an answer," Chaudhary demanded. "Economy management is not a pastime, nor is it a part-time job. It requires fulltime dedication."
Source:eKantipur

Deposit insurance mechanism soon

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:28:00 +0000

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

NRB Left NBB Management

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:28:00 +0000

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

ILFC Headed toward Commercial Bank

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:27:00 +0000

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

NDEP Concludes 3rd AGM

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:26:00 +0000

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

SBL to issue bonus shares

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:26:00 +0000

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

Himalayan Bank in Baglung

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:26:00 +0000

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

NRB bars promoters to buy public shares

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:25:00 +0000

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

Lets build economy: FM

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:24:00 +0000

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

Liquidity Crisis: Higher Import Duty Likely

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:23:00 +0000

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

NNFC in verse to be Development Bank

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:23:00 +0000

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

Govt mulling policy measures to address liquidity crunch

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:22:00 +0000

The government is planning to adopt policy-based precautionary measures to address the liquidity crisis not affecting other various sectors. The high-level committee formed by the Cabinet to study the deepening liquidity crisis decided to adopt such measures at the committee's first meeting on Monday.

The meeting chaired by Yubaraj Khatiwada, Vice Chairman of National Planning Commission, has begun discussions to adopt policy-based precautionary measures by studying rising inflation, liquidity crisis in the financial system and external sectors. The country is facing liquidity crisis with a Balance of Payment (BoP) deficit of more than Rs. 20 billion with a decline in the growth rate of remittance inflow in the first four months of current fiscal year. In the first four months, import has increased, especially with significant growth of gold import in the country. At the same time, Nepal Rastra Bank has imposed ceiling on realty exposure for financial institutions.

"We should not create a situation where decision to solve one problem gives rise to another problem," said a member of the committee. "We should not take any hasty decision as well." The government had constituted the committee to make necessary recommendations to address the liquidity crunch. The committee comprises has finance secretary, deputy governor and experts as its members.

According to a member of the committee, decision should be taken after evaluating the internal and external sectors. "We need to have a detailed analysis of the situation," he added. The committee will be making decisions without leaving a long-term negative impact. The committee is of the view that the central bank and the Ministry of Finance should have a unanimous voice regarding the economic situation.

The committee is planning to make concrete advises to the government in the next meeting scheduled to be held in 15 days. "We can also call for meeting before 15 days to arrive at decision if need be," said the member.
Source:eKantipur

Inter-bank rate down to 11 pc

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:22:00 +0000

The inter-bank lending declined by over three percentage points on Monday from its pick of 14.5 percent, thanks to huge amount of cash that the central bank injected into the system on Sunday.

Bankers told that the inter-bank lending rate too scaled down to 11 percent at maximum from 14.5 percent recorded last week.

"Market has stated showing positive impacts of the additional liquidity injected by the central bank and it is likely that the rate will further decline once the full impact of the added liquidity is felt in the money market," a banker told myrepublica.com.

The central bank on Sunday issued the largest-ever repo worth Rs 10 billion, of which only half was subscribed, bringing down the short-term central bank lending rate to 7.41 percent on average from 12.42 percent recorded last week.

The latest step of NRB came after the earlier injection, amounting Rs 15 billion failed to satisfy market demand
Source:Republica

KIST branch in Hetauda

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:21:00 +0000

KIST Bank has opened its 44th branch in Hetauda. The new branch was inaugurated on Monday by Kamal Prasad Gyawali, managing director of the bank. The bank plans to expand its branch network to 50 within this fiscal year, states a press release of the bank. KIST will be opening branches in Swayambhu, Kathmandu and Dhadingbesi shortly.
Source:eKantipur

Interests worry industrialists

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:21:00 +0000

Industrialists have said that the increased interest rates banks were charging would raise their cost of production and ultimately market prices. Banks have hiked the interest rate on lending as they are paying more for liquidity. The banking system has been beset by a cash crunch which has not eased even after an injection of Rs. 25 billion by Nepal Rastra Bank over the last two months..

A banker said that interest rates on lending had increased by 1-2 percent in recent days. Some banks have already imposed their new interest rates and some are informing businessmen that they would be increasing the rates soon.

Pradeep Jung Pandey, vice president of the Federation of Nepalese Chambers of Commerce and Industry said that the banks he was dealing with informed him that the interest rates would go up by 2 percent from mid-January. "I have been informed that the interest rates would go up to 12 percent from around 10 percent I have been receiving loans at," he said. "This will increase the cost of production of our industries at least by 5 percent and this will cause inflation to go up," he added.

The country's inflation went up to 9.9 percent in the fourth month of the current fiscal year for the first time after a continuous decline for three months of the year. Inflation had reached 9.3 percent in three months, according to the latest report of NRB on the country's economy. Industrialist Diwakar Golchha said that he was getting loans at 8-8.5 percent until recently, and the banks he was dealing with were informing him that the rates would go up from mid-January. He, however, said that the big banks were yet to revise their interest rates.

He was of the view that industries would be hit hard further by the increased interest rates given that the industries were hit hard by load-shedding, labour problems and other infrastructure-related problems. Managing director of the K.L. Dugar Group Kumud Dugar sad he had to pay 10-11 percent interest now although he was getting loans at around 7-8 percent. "Some banks already imposed the new interest rates and some have informed us that they are going to charge higher rates soon," he said.

He said that the relatively low interest rates of Nepali banks were the only advantage for Nepali agriculture-based industries against the Indian ones and the hike in the interest rates would make Nepali industries uncompetitive. "It may help in increasing Indian agriculture products to flood the Nepali market as Nepali products will be more expensive as a result of the increased cost of production," he said.

A banker, however, said that the increased interest rate would not make a huge difference to well operating industries although he supported the idea that it would definitely cause the cost of production to go up. However, an increased cost of production for export industries would not help the central bank's policy of discouraging imports and reducing the ballooned trade deficit of 48 percent.
Source:eKantipur

Bishwa Bikash Bank opens seventh branch

noreply@blogger.com (Rabindra Bhattarai) — Sat, 16 Jan 2010 03:20:00 +0000

Bishwa Bikash Bank has succeeded in opening its seventh branch within two years of operation. The branch is Butwal was inaugurated by Jagan Bahadur Gurung, chairman of the bank, on Monday.

Speaking on the occasion, Gurung said that the bank is looking forward to extend its services and prove itself effective through competitive banking services. "The main objective of the bank is to accumulate inactive capital and circulate it to the investors and thus utilize it for different development activities," Gurung said.

The bank has been providing effecitve services to its clients though 365 days banking service and ATM service among others. The bank has branches in Kaski, Tanahun, Makawanpur, Syangja, Parvat, Chitwan, Bara, Parsa, Nawalparasi and Rupandehi district. The bank is also planning to issue primary shares worth Rs 93.6 million.
Source:Republica