Nepal Stock Exchange News

Right Share (10:6) of Sunrise Bank Ltd.

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:59:00 +0000

The BOD meeting of Sunrise Bank Ltd. has decided to propose 10:6 right share subject to approval from NRB and its upcoming AGM and has decided to amend the provision of MOA and AOA as required by DhitoPatra Darta Tatha Niskasan Niyamabali, 2065.

The trade of Sunrise Bank scrip at secondary market takes place from today. It was opened with price Rs. 499 but dragged down to Rs. 450 (12.50 PM) Tuesday.

As per the fourth quarter financial report (2065/66), the bank has posted Rs. 102.548 million net profit and Rs. 127.923 million operating profit. Likewise, the bank has paid up capital of Rs. 1.337 billion and holds Rs 12.208 million deficits in its reserve and surplus account.
Source:Jamb News Service

Paneru Appointed as Nepse Chairman

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:59:00 +0000

Government of Nepal has appointed Tanka Prasad Paneru as the Chairman of Nepal Stock Exchange. Paneru is Chartered Accountant and was former chairman of Institute of Chartered Accountant of Nepal and has also worked as member of Securities Board of Nepal.

Former Chairman of Nepal Stock Exchange (Nepse) Dr Narayan Prasad Paudel resigned from his post on 26th July 2009. "I couldn´t get cooperation from Nepse board members to implement some innovative programs, including skill development program for employees, prompt decision on appointment of stock brokers and introduction of Central Depository System in Nepse," Paudel had said at a press meet organized to inform about his resignation.

The Maoist-led government had appointed Dr Poudel, to the post on 1st January 2009. After his resignation, the post of Chairman at Nepse was vacant till the date of Paneru's appointment.
Source:Jamb News Service

NRB cracks the whip on margin lending

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:57:00 +0000

Nepal Rastra Bank (NRB) has directed banks and financial institutions to reduce the limit of renewal of margin lending -- lending against collateral of shares -- by 50 per cent.

NRB has taken the move to control margin lending in response to reducing share prices. According to NRB directives, banks and financial institutions can renew loan of those borrowers who have repaid 50 per cent loan.

They should have paid total interest of their loan, said NRB. This directive will further affect the Nepali capital market. Nepal Stock Exchange (Nepse) is in a bearish trend since September. Furthermore, NRB has fixed limits for investment in shares and debentures for class `B' and `C' banks and financial institutions. Class `B' companies can invest 20 per cent of paid up capital per company whereas the limit is 10 per cent for class `C' companies.

Meanwhile, NRB has prohibited financial institutions' boards of directors from using the official letterpads of the institutions. Chairpersons and directors cannot use official letterpads for correspondence, NRB said. It has also prohibited non-executive chairpersons from working as chief executive officers.
Source:

NRB urged to probe treasury position

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:57:00 +0000

Finance Ministry has expressed dissatisfaction over huge variation seen in the important statistics related to treasury position of the country and has urged the central bank to look into the matter.

A press release issued by Ministry of Finance on Sunday stated that the overall treasury position of the country was in surplus of Rs 3.25 billion in a weekly statement issued by the central bank at the end of last fiscal year.

As a result of surplus treasury position, the government mobilized Rs 6.60 billion less internal loans than planned for last year. However, all of sudden, the central bank, in its third amendment of the treasury position issued on September 20 this year, stated that the overall treasury position was in deficit by Rs 7.99 billion. Though there used to be minor adjustments in the past, the variation of such an extent is worrisome, stated the release.
Source:Republica

Bonus Share of Sahayogi Bikas Bank Ltd.

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:57:00 +0000

The 98th BOD meeting of the company has decided to propose 25% bonus share subject to approval from NRB.

Bonus Share and Cash Dividend of Central Finance Ltd.

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:56:00 +0000

The 116th BOD meeting of the company has decided to propose 15% bonus share and Rs. 1001803 cash dividend subject to approval from NRB.

Bonus Share and Cash Dividend of Subhechha Bikas Bank Ltd.

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:56:00 +0000

The 91st BOD meeting of the company has decided to propose 20% bonus share and 11.1% cash dividend subject to approval from NRB.

Bonus Share and Cash Dividend of Lumbini Finance Ltd.

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:56:00 +0000

The 190th BOD meeting of the company has decided to propose 25% bonus share and 1.23% cash dividend subject to approval from NRB and its upcoming AGM.

Bonus Share of Triveni Bikas Bank Ltd.

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:55:00 +0000

The 87th BOD meeting of Tireveni Bikash Bank Ltd. has decided to propose 30% bonus share subject to approval from NRB and its upcoming AGM.

Mahakali´s IPO

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:54:00 +0000

Mahakali Development Bank, the first development bank of Mahakali zone in the far-western region, is issuing public shares from Nov 2nd. The bank will be issuing 81,800 share units, each with a face value of Rs 100. The issue will raise the paid up capital of the bank to Rs 20 million.

"The issue will be opened for four days starting from Monday," said Sudarshan Joshi, chief executive officer of the bank. He stated that the people in all the five development regions can apply for the shares, as the bank has made arrangements for accepting the applications in all the regions.

Established two years ago, Mahakali presently has a depositor base of 4,310. It has mobilized deposits of Rs 120 million and issued loans of Rs 80 million. "We managed to earn profit of Rs 1.23 million in the last fiscal year," said Joshi.

The bank has recently opened a branch in Jharali of Kanchanpur.
Source:THT

SBI's dividends

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:53:00 +0000

Nepal SBI Bank's 225th board meeting on Friday proposed 2.11 per cent cash dividend and 10:4 bonus shares to its shareholders. The decision has to be approved by the central bank and SBI's own AGM. The bank collected deposit Rs 27.96 billion in the fiscal year 2008-09 and invested Rs 15.61 billion. It posted a net profit of Rs 440.24 million in that fiscal year which was 25.20 per cent higher than the preceding year's Rs 310.64 million.
Source: THT

Jyoti Bikash Bank Ltd. to float shares

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:53:00 +0000

Jyoti Bikash Bank (JBL) will be issuing its ordinary shares to the general people soon. Jyoti Bikash Bank chief executive officer Jhalak Prasad Khanal and Ace Development Bank chief executive Siddhant Raj Pandey signed the agreement declaring Ace the issue manager. Ace will act as issue manager for the public issue of 20,52,860-unit of ordinary shares of JBL at Rs 100 per unit face value.
Source:THT

Oversubscribed Asian Life IPO issue

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:52:00 +0000

Asian Life Insurance's primary issue closed today after it was versubscribed more than tenfold. "By the end of today we expect the collection to exceed Rs 1.65 billion," said Ramesh Bhattarai, chief executive officer of Asian Life Insurance.
The Initial Public Offer (IPO) worth Rs 108 million of 10,80,000-units at a face value of Rs 100 per unit — was floated on October 27.

"After this public issue worth Rs 108 million, the paid-up capital of the company will be Rs 360 million," he said adding there is Rs 252 million paid-up capital at present. At a time when the secondary market has been performing poorly, the encouraging response has shown that there is still an attraction for primary issue. "People may have found the IPO more lucrative as there has been no IPO for some time," Bhattarai said.

Contrary to the banks and financial institutions, insurance companies declare bonus only once in three years. Of the total issue, 43,200-units are meant for the staff of the company. Contrary to other public issues, the company has allowed people to apply for minimum 10-units also.
The maximum limit for application was upto 20,000-units. After complaints about fake applications, Securities Board of Nepal (Sebon) has made it mandatory to apply with photo and bank account number for the primary issue. The regulatory authority of the capital market permitted the company on September 16 to go public and the Company Registrar's Office gave the go-ahead on October 8.

NIDC Capital Markets was the issue and sales manager of the insurance company that has — according to unaudited accounts — posted Rs 3.32 million profit in the fiscal year 2008-09. The company has projected Rs 15.29 million profit for this fiscal year. According to its prospectus, it is not going to give any dividend for another three years.

Asian will be the 18th listed insurance company in Nepse as there are already 17 listed insurance companies — under Nepse's insurance companies sub-group — with a total of 20,703,504-unit shares at Rs 100 face value making a total total paid up worth Rs 2,070,350,400.
Source:THT

Interaction Program on "Futures and Derivatives Market"

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:52:00 +0000

Mercantile Exchange Nepal Limited and New Business Age jointly organized "An interaction program on Future and Derivative market" here on Friday. Challenges and opportunities of futures and derivatives market was discussed broadly at a program held at Del' Annapurna. Opinion and perception from various participants from wide array of field including NRB, SEBON, Banking and commodities market interact to promote, evaluate the scope, challenges and future perspectives of newly emerged derivative market in Nepal.

Chief Guest of the program, Mr. Krishna B. Manandhar, deputy governor of NRB said, Even though Futures and Derivatives market has emerged as prominent lucrative venue in Nepal, it has high risk and no regulatory bodies to monitor effectively. Hence, investors at this market could face in-partiality, lack of proper regulatory and could occur in hefty loss.

Similarly, Siddhanta Raj pande, CEO of Ace Development bank opined, there should be strong regulatory bodies to govern the futures market, sophisticated and reliable warehouse should be develop so as to deliver the products as per demand and there should be limited but proper managed exchanges so as to promote and develop this market effectively.

Similarly, Chairman of SEBON, Financial Advisor of Finance Ministry, representative from World Bank (Neapl), General Manager of Nepal Stock Exchange, Chairman of Bankers association and respective personalities from various field explore the need and challenge of futures and derivative market and gave contemplation to act in positive approach.

At conclusion, following points were mostly highlighted at an interaction program.

· There is lack of government regulations in Futures and Derivatives market, hence regulatory body need to act very soon to let hand in market efficiency, lucrative and partiality.

· There should be standardized warehousing with sophisticated and reliable quality standard measurement for products.

· Qualified and knowledge based human resource need to be build up for further advancement and market functioning.

· Internet connection should make thorough and speed access to assist the trade.

· Systematic and thorough knowledge to investors, brokers and respected individuals need to be disseminating in proper manner so as to maintain trade effectively and rationally.
Source:Jamb News Service

Complaint filed to halt Asian Life's IPO

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:51:00 +0000

A complaint has been registered against the primary issue of Asian Life Insurance here at the Securities Board of Nepal (Sebon). Bishwambher Ghimire has filed a complaint to stop the issue as the company has asked to deposit 100 per cent face value of the shares, which according to the Company Act should be 50 per cent as it has not completed three years of operation.

Asian Life Insurance Company floated its 10,80,000-units shares worth Rs 108 million of primary shares at a face value of Rs 100 per unit from 27th October 2009. "The company was established only two years ago and according to the Company Act, it cannot ask for the cent per cent call money of the face value," Ghimire said adding that the company cheated investors by asking them to deposit Rs 100 per unit of shares instead of Rs 50 per unit. The issue is against the Company Act and Sebon Regulation.

Sebon, the regulatory authority of the capital market has committed a mistake and it should correct its mistake by immediately halting the issue, he added. According to the Sebon Regulation also, the call money of such a company should be 50 per cent of the face value, Ghimire claimed.

But Sebon director Niraj Giri said that the company has, according to the condition of Insurance Board (IB) called for the 100 per cent call money. "The promoters have also paid the 100 per cent of their shares," he added. After this public issue worth Rs 108 million the paid-up capital of the company will be Rs 360 million, according to Asian Life Insurance that has Rs 252 million paid-up capitals at present.
Source:THT

BoK announces 40 pc bonus shares

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:50:00 +0000

The 359th board meeting of Bank of Kathmandu (BoK) held on Wednesday decided to propose 40 percent bonus share and 7.37 percent cash dividend to its shareholders.

According to a press release, the bank earned a net profit of Rs 461.73 million in the last fiscal year, which was a growth of about 28 percent compared to the preceding fiscal year. The decision of the board, however, is subject to the approval of Nepal Rastra Bank.

Moreover, the release notes that the bank has managed to increase its deposits by 14.21 percent and loans and advances by 17.24 percent in 2008/09, compared to the previous year. The bank has also announced that its non-performing loans in the last fiscal year have dropped to 1.27 percent from 1.86 percent of a year ago.
Source:Republica

NIC Bank announces 15 pc bonus shares

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:50:00 +0000

The board of directors of Nepal Industrial & Commercial Bank Limited (NICB) has decided to recommend distribution of 15 percent bonus shares and 0.79 percent cash dividend to its shareholders for fiscal year 2008/09. The recommendation will be made at the bank´s annual general meeting and be forwarded to Nepal Rastra Bank for approval, the bank said in a statement Wednesday.

NIC Bank, which was established in July 1998, now has eight branches inside the Kathmandu Valley and 14 outside it. The bank´s corporate office is in Kamaladi, Kathmandu.
Source:Republica

5% Cash Dividend: Siddhartha Development Bank

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:49:00 +0000

The BOD meeting of the Siddhartha Development Bank Ltd. has decided to give 5% cash dividend from the profit of fiscal year 2065/66 on subject to approval from NRB and its upcoming AGM. According to fourth quarter financial report of the bank, it has posted Rs. 42.389 millions as net profit and Rs. 56.446 operating profit.

Just few weeks before, Nepal Rastra Bank has agreed in principle to allow Siddhartha Development Bank Ltd. to increase its capital base and upgrade it to a national level development bank. The development bank said it would soon move its headquarters to Kathmandu and start providing financial services at the national level. The bank has a client base of more than 25,000 and has a paid-up capital of Rs 645 million.

Right Share Listing: Narayani Development Bank

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:49:00 +0000

Total of 99884 units right share of of Narayani Development Bank Ltd. from Serial No. 250001 to 350000 has been listed for trading in Nepal Stock Exchange.

Right Share Listing: Civil Merchant Bittiya Sanstha

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:49:00 +0000

Total of 499270 units right share of Civil Merchant Bittiya Sanstha Ltd. has been listed for trading in Nepal Stock Exchange.

Bonus Share Listed: Nirdhan Utthan Bank

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:48:00 +0000

Total of 209936 units' bonus share of Nirdhan Utthan Bank Ltd. has been listed for trading in Nepal Stock Exchange.

Right Share Listed: Pokhara Finance

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:48:00 +0000

Total of 12720 units right share of Pokhara Finance Ltd. been listed for trading in Nepal Stock Exchange.

10% Cash Dividend: Siddhartha Bank

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:47:00 +0000

The 128th BOD meeting of Siddhartha Bank Ltd. has decided to propose 10% cash dividend to its shareholders from the profit of fiscal year 2008/09 on subject to approval from NRB and its upcoming AGM. Last year, the bank had provided 15 percent bonus shares and also decided to issue 2:1 right share, however the book closure of right share is yet not finalized.

According to the fourth quarter financial report of the bank (2065/66), the bank has posted Rs. 215.602 million net profit and Rs. 347.660 million operating profit. Likewise, the bank has Rs. 952.200 million as paid up capital and holds Rs. 331.759 millions in its reserve and surplus account.
Source:Jamb News Service

Holiding Share Sell Notice: Machhapuchchhre Bank

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:44:00 +0000

Machhapuchchhre Bank Ltd. has issued notice to general public for sell of 8943000 units share (its holding) of Himalayan Distilary (Source: Jamb News Services)

Right Share Issue: Laxmi Bank

noreply@blogger.com (Rabindra Bhattarai) — Tue, 03 Nov 2009 17:43:00 +0000

Laxmi Bank Limited is issuing right share in the ratio of 10:4 from 19 November 2009 to 23 December (2066 Mangsir 4 to poush 8)