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Nepal's Department of Industry Goes Fully Digital, Halting Physical Applications to Boost Business Efficiency
The Department of Industry (DoI) in Nepal is set to usher in a new era of digital governance, announcing the complete cessation of physical application submissions for most of its services starting from the upcoming Monday, August 3rd (Saun 18). This pivotal move aims to transform the department's service delivery into a fully digital and technology-friendly ecosystem, significantly streamlining processes for businesses and investors alike. Under this new directive, key services such as industry registration, approval for Foreign Direct Investment (FDI), capacity expansion, name transfers, and updates to company details will no longer require applicants to visit the DoI's physical offices. Instead, all these critical functions will be seamlessly managed through the department's robust online system, the Centralized Industry Management System (CIMS). This initiative marks a significant leap towards a paperless administration, aligning with global best practices for efficient public service delivery. According to Suresh Dahal, Information Officer at the Department, this strategic shift is designed to enhance transparency, expedite administrative procedures, and make services more user-friendly. Historically, despite some services being available online, many tasks still necessitated a physical presence at the department, leading to delays and bureaucratic hurdles. The complete transition to an online platform is expected to dismantle these barriers, fostering a more conducive environment for business operations. The benefits of this digital transformation are manifold for the business community. Industry professionals and entrepreneurs are poised to experience substantial savings in both time and operational costs. This is particularly advantageous for businesses located outside the Kathmandu Valley, who previously had to undertake arduous and time-consuming journeys to the capital for routine administrative tasks. Furthermore, the move is anticipated to provide greater ease and convenience for foreign investors looking to establish or expand their ventures in Nepal, thereby potentially boosting the nation's appeal as an investment destination. The decision has been met with widespread approval from the private sector. Kamlesh Agarwal, President of the Nepal Chamber of Commerce, lauded the DoI's initiative, emphasizing its potential to offer significant relief to businesses. He highlighted that this digital leap would not only reduce administrative complexities but also play a crucial role in establishing good governance within the industrial sector. Such endorsements underscore the private sector's readiness and eagerness for modern, efficient governmental processes. While the transition promises numerous advantages, stakeholders have also urged caution regarding its implementation. Concerns have been raised about potential technical glitches, such as internet outages or server disruptions, which could inconvenience service seekers. To mitigate these risks and ensure a smooth transition, business leaders have recommended the establishment of a robust and secure IT infrastructure, regular system maintenance, and the provision of an effective help desk. These measures are vital to ensure that the online system remains reliable and accessible, preventing any unintended disruptions to business operations. This comprehensive digitalization effort by the Department of Industry is a testament to Nepal's commitment to modernizing its administrative framework and improving the overall ease of doing business. By embracing technology, the government aims to create a more dynamic, transparent, and investor-friendly environment, which is crucial for attracting both domestic and foreign capital. The success of this initiative will not only depend on the technical robustness of the CIMS but also on continuous user support and adaptability, ultimately contributing to Nepal's broader economic development goals.
Sana Kisan Bikas Laghubitta Reports 25.36% Decline in Q4 Net Profit, Distributable Profit at Rs 1.64 Billion Amidst Sectoral Headwinds
Sana Kisan Bikas Laghubitta Bittiya Sanstha (SKBBL), a prominent microfinance institution in Nepal, has released its unaudited fourth-quarter financial report for the fiscal year 2082/83, revealing a significant downturn in its profitability. The institution reported a 25.36% decline in net profit, a key metric closely watched by investors, signaling a challenging period for the company and potentially the broader microfinance sector. According to the published report, SKBBL's net profit for Q4 FY 2082/83 stood at Rs. 65.31 crore, a notable decrease from Rs. 87.50 crore recorded in the corresponding quarter of the previous fiscal year. This substantial reduction in earnings per share (EPS), which dropped by 34.67% from Rs. 20.29 to Rs. 13.26, will undoubtedly draw the attention of shareholders and potential investors. The distributable profit, a crucial indicator for dividend prospects, also saw a decline of 10.85%, settling at Rs. 1.64 billion compared to Rs. 1.84 billion in the prior year. A deeper dive into the financial statements reveals several contributing factors to this performance. The most significant impact appears to stem from a sharp 29.08% drop in net interest income, which fell to Rs. 1.27 billion from Rs. 1.79 billion. As the primary revenue stream for financial institutions, this decline suggests either reduced lending margins, lower asset yields, or a combination of both, reflecting the competitive and often challenging operating environment for microfinance institutions in Nepal. Despite the contraction in profitability, SKBBL demonstrated resilience in certain areas. The company's paid-up capital increased by 14.25% to Rs. 4.92 billion, while reserves and surplus grew by 4.57% to Rs. 4.33 billion, indicating a strengthening of its capital base. Loans and advances to Microfinance Institutions (MFIs) and cooperatives also saw a modest increase of 3.18%, reaching Rs. 35.39 billion, suggesting continued outreach and lending activities. Furthermore, borrowings decreased by 4.04% to Rs. 19.75 billion, which could potentially ease future interest expenses. One positive highlight was the significant improvement in the cost of funds, which declined by 12.74% to 2.74%. This indicates more efficient management of funding sources or a favorable interest rate environment for borrowing. The institution also reported a reversal of impairment charges amounting to Rs. 3.26 crore, a stark contrast to the Rs. 10.40 crore in charges recorded in the same period last year. This reversal helped mitigate the overall decline in profitability, suggesting some recovery in previously impaired assets or more favorable provisioning requirements. However, concerns remain regarding asset quality. SKBBL's Non-Performing Loan (NPL) ratio inched up to 2.96% from 2.65% in the previous fiscal year. While still within manageable limits for the sector, an upward trend in NPLs warrants close monitoring as it can lead to higher provisioning requirements and impact future profitability. On a positive note, the Capital Adequacy Ratio (CAR) improved to 17.31% from 16.02%, reinforcing the institution's financial stability and its capacity to absorb potential losses. From an investor's perspective, the current Price-to-Earnings (P/E) ratio stands at a relatively high 56.72 times, based on a market price of Rs. 751.9 per share. This valuation, coupled with the declining EPS, suggests that the market may be pricing in future growth potential or sector-specific premiums, despite the recent dip in earnings. The net worth per share remained relatively stable at Rs. 221.76. In conclusion, Sana Kisan Bikas Laghubitta's Q4 FY 2082/83 report presents a mixed financial picture. While the institution faces headwinds reflected in its declining net profit and net interest income, it has also demonstrated strengths in capital adequacy, cost of funds management, and continued lending growth. Investors will be keen to observe how SKBBL navigates the evolving microfinance landscape, particularly in managing asset quality and enhancing its core revenue streams, to restore robust profitability in the upcoming fiscal periods. The performance underscores the broader challenges faced by the microfinance sector in Nepal, which is grappling with economic slowdown, increased competition, and evolving regulatory frameworks.
Chhurpi Export up by 27 Percent; Transaction Reaches Rs 1.79 Billion in a year
Chhurpi amounting to over Rs 1.79 billion 2.8 million has been exported from the Mechi Customs Office in the last year alone. With the rise in the demand for Nepali Chhurpi products in the international market, the export in the last fiscal year has increased by around 27 percent compared to the previous fiscal year. According to the Mechi Customs Office, Chhurpi worth Rs 1.41 billion 7.1 million was exported in fiscal year 2081/82 BS. Information Officer at the Office, Mangal Rai shared Chhurpi exports have been continuously rising in the last consecutive years. Chhurpi is used as feed for dogs and cats. It is mainly produced in Ilam, Panchthar and Taplejung.
MP Sitaula Questions PM's Parliamentary Accountability, Warns Against 'Governing from Behind the Curtain'
In a significant development that underscores growing concerns over governmental transparency and accountability, Nepali Congress Member of Parliament (MP) Krishna Prasad Sitaula has publicly questioned Prime Minister Pushpa Kamal Dahal 'Prachanda' and his cabinet's perceived reluctance to engage directly with the Parliament. Speaking at a National Assembly meeting on Friday, MP Sitaula urged the Prime Minister and ministers to uphold their responsibilities and be fully accountable to the legislative body. MP Sitaula expressed profound apprehension regarding the Prime Minister's apparent disinclination to address critical national issues through parliamentary channels, especially when the Parliament is in session. "Why does the Prime Minister wish to govern the country from behind a curtain? What difficulties is he facing?" Sitaula queried, highlighting a serious suspicion that has emerged in the public sphere and the market. He emphasized that the Prime Minister must articulate any challenges preventing him from operating transparently and accountably in the public domain, assuring the government of the opposition's full cooperation should such clarity be provided. Sitaula's remarks delve into the core principles of democratic governance, where the executive branch is inherently answerable to the legislature. He argued that avoiding direct engagement with Parliament, particularly in responding to questions raised by elected representatives, undermines the very essence of democracy and constitutional provisions. "When the Prime Minister chooses not to address the public through Parliament during its active session, it creates a grave suspicion," Sitaula stated, adding that such a practice risks pushing the nation towards a "serious accident," implying political instability and a potential crisis of governance. For investors and market participants, political stability and transparent governance are paramount. The perception of a government operating without full parliamentary oversight can lead to uncertainty, impacting investor confidence and potentially deterring both domestic and foreign investment. A lack of clear communication from the highest levels of government on national issues can foster an environment of speculation, which is detrimental to economic predictability and growth. MP Sitaula further stressed that questions raised in Parliament are, in essence, questions from the people. He urged the government to view these inquiries as opportunities for clarification or to accept them as constructive suggestions. He also pointed out the need for the federal government to acknowledge and coordinate effectively with other tiers of government, specifically citing the ongoing tensions in the Madhesh region. Sitaula criticized the federal government's perceived failure to adequately coordinate with the Madhesh Province government to resolve the escalating unrest, highlighting a broader issue of inter-governmental collaboration crucial for national stability. In conclusion, MP Sitaula's impassioned plea serves as a critical reminder of the importance of robust parliamentary engagement, transparency, and accountability in a democratic system. His warning against governing from 'behind the curtain' resonates deeply, particularly for an investor audience that values stability, predictability, and clear communication from political leadership. Upholding these democratic tenets is not merely a matter of political procedure but a fundamental requirement for fostering a healthy economic environment and ensuring sustained national development.
IPPAN Warns Social Unrest Threatens Nepal's Energy Sector and Economic Growth, Urges Peace and Investment Security
The Independent Power Producers' Association, Nepal (IPPAN), a pivotal body representing the nation's private energy developers, has issued a stern warning regarding the escalating social tensions and unrest observed across various parts of the country. Expressing profound concern over recent incidents, IPPAN has made an earnest appeal to all Nepalis to uphold peace, exercise restraint, and foster mutual harmony, emphasizing that a stable environment is paramount for national progress and economic prosperity. Nepal's hydropower sector stands as the cornerstone of its economic development, holding immense potential to transform the nation's financial landscape. Private sector developers, in collaboration with local communities, have been actively engaged in constructing numerous hydropower projects across the diverse geographical terrains of Nepal – from the high Himalayas to the hills and the Terai plains. These projects, often large-scale and capital-intensive, are inherently vulnerable to external disruptions. IPPAN's statement highlights that social unrest, including acts of violence, vandalism, and general strikes (bandhs), directly impede the progress of these critical infrastructure projects. The ripple effects of such instability are far-reaching. An environment of unrest not only erodes investor confidence, both domestic and international, but also significantly inflates production costs and prolongs construction timelines. This, in turn, casts a long shadow over overall economic activities, hindering growth and development. For a nation like Nepal, heavily reliant on foreign direct investment and private sector participation to harness its vast hydropower potential, maintaining a predictable and secure operational environment is non-negotiable. Delays in project completion mean deferred revenue generation, increased interest burdens on loans, and a slower pace of electrification and industrialization, ultimately impacting the national GDP and the welfare of its citizens. IPPAN unequivocally asserts that peace, social harmony, and a secure investment climate are indispensable for the successful execution of any project. In the current economic scenario, where the expansion of both private and public investment is crucial for economic revival and sustained growth, the protection of vital infrastructure becomes even more critical. The association has therefore urged the Nepal government and relevant regulatory bodies to implement effective measures to ensure the security of power projects and other industrial infrastructure. This includes robust law enforcement, swift action against perpetrators of violence, and proactive engagement with communities to address grievances through peaceful means. Furthermore, IPPAN firmly believes that dialogue, negotiation, and adherence to constitutional processes are the most effective and democratic means to resolve disagreements or disputes within Nepal's diverse society. The association has called for enhanced cooperation among civil society organizations, the private sector, local communities, and all stakeholders to cultivate positive public awareness. This collective effort, IPPAN contends, is essential to strengthen the national unity and development agenda, ensuring that the country remains on its trajectory towards sustainable economic prosperity. The press statement, signed by IPPAN Chairman Mohan Kumar Dangi, underscores a fundamental truth: only a peaceful and harmonious environment can provide the bedrock for energy development and enduring economic growth. The stability of the energy sector, particularly hydropower, is not merely an industry concern but a national imperative, directly linked to Nepal's ability to attract investment, create jobs, and improve living standards. Investors, both local and foreign, continuously assess political and social stability as a key factor in their investment decisions. Prolonged periods of unrest can lead to capital flight, deter new investments, and severely damage Nepal's reputation as an emerging market. Therefore, IPPAN's appeal serves as a critical reminder to all stakeholders about the profound economic consequences of social instability and the urgent need for collective action to safeguard the nation's developmental aspirations.
Saptakoshi Development Bank Posts 86.18% jump in Net Profit as Cost of Fund Drops to 3.7
Saptakoshi Development Bank Limited (SAPDBL) has posted a net profit of Rs. 15.04 crore in the Fourth quarter of FY 2082/83, marking an impressive 86.18% rise compared to Rs. 8.08 crore in the same period last fiscal year. Total deposits increased by 66.48%, reaching Rs. 8.88 arba, while loans and advances rose by 10.41% to Rs. 5.56 arba. Despite these improvements, net interest income dipped slightly by 0.47%, to Rs. 23.34 crores. Personnel expenses rose slightly by 0.25 percent to Rs 13.69 crore. Meanwhile, Impairment charges on loans and other losses saw a reversal of Rs 19.69 crore in the fourth quarter, compared with a reversal of Rs 4.08 crore in the same quarter last fiscal year. These cost efficiencies contributed to an operating profit of Rs. 24.79 crores, up by 132.05% compared to last fiscal year. Saptakoshi Development Bank strengthened its capital position, with the capital adequacy ratio increasing to 11.29% from 8.29%. Likewise, net worth per share rose by 30.23% to Rs. 86.71. Non-performing loans (NPL) stood at 6.15%, and the cost of funds decreased to 3.70% from 4.30%. Earnings per share (EPS) surged to Rs. 18.04 from Rs. 9.69 last year. The company’s Price-to-Earnings (P/E) ratio at the end of the quarter was 40.48 times, based on a market price of Rs. 730.1 per share. Report: Major Financial Highlights: Particulars (In Rs '000) Saptakoshi Development Bank Limited Q4 2082/83 Q4 2081/82 Difference Paid Up Capital 834,338.43 834,338.43 0.00% Retained Earnings -558,853.73 -624,096.38 -10.45% Reserves 448,010.85 345,304.97 29.74% Deposit 8,885,231.69 5,337,050.08 66.48% Loans & Advances 5,562,595.84 5,038,326.36 10.41% Net Interest Income 233,425.94 234,534.05 -0.47% Personnel Expenses 136,958.20 136,609.96 0.25% Impairment Charges/(reversal) for loans and other losses -196,908.43 -40,809.00 382.51% Operating Profit 247,965.90 106,858.60 132.05% Net Profit 150,473.89 80,820.55 86.18% Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 558,853.73 624,096.38 -10.45% Capital Adequacy (%) 11.29 8.29 36.19% NPL (%) 6.15 10.65 -42.25% Cost of Fund (%) 3.70 4.30 -13.95% EPS (In Rs.) 18.04 9.69 86.18% Net Worth per Share (In Rs.) 86.71 66.59 30.23% Qtr end PE Ratio (times) 40.48 - - Qtr End Market Price 730.1 - -
Kumari Bank Upholds Customer Commitment with Significant Insurance Payout
Kumari Bank Limited has once again demonstrated its unwavering commitment to customer welfare and financial security by facilitating a substantial insurance claim payout. The bank's Gaumul Branch recently transferred an amount of NPR 1,000,000 (Ten Lakhs Nepali Rupees) to the family of a deceased customer, underscoring the tangible benefits of its "Parivar Suraksha Bachat Khata" (Family Security Savings Account) scheme. This timely financial assistance follows the tragic accidental death of the husband of Bana Devi Bohara, providing crucial support during an incredibly challenging period for the grieving family. This incident highlights the critical role financial institutions play beyond traditional banking services. In a market as dynamic and competitive as Nepal's, banks are increasingly differentiating themselves through value-added services that address the broader financial and social needs of their clientele. Kumari Bank's "Parivar Suraksha Bachat Khata" is a prime example of such an initiative, designed to offer not just a savings avenue but also a robust safety net against unforeseen circumstances. The scheme aims to provide financial relief to families impacted by unfortunate events, thereby strengthening their sense of future financial security and peace of mind. For investors, this news offers valuable insights into Kumari Bank's operational ethos and strategic positioning. A bank that consistently honors its commitments, especially regarding insurance benefits linked to its savings products, builds significant trust and loyalty among its customer base. This customer-centric approach is a vital component of long-term sustainability and growth in the banking sector. In a country where a significant portion of the population still faces economic vulnerabilities, products like the "Parivar Suraksha Bachat Khata" resonate deeply, attracting and retaining customers who prioritize security alongside returns. Kumari Bank's extensive operational footprint further reinforces its capacity to deliver on such promises. With a legacy spanning 25 years, the bank has meticulously built a robust network comprising 285 branches, 41 extension counters, 302 ATMs, and 40 branchless banking points spread across Nepal. This widespread presence ensures that banking services, including the processing of critical claims like this one, are accessible to a broad spectrum of the Nepali populace, from urban centers to remote areas. The efficiency with which the Gaumul Branch processed this claim reflects well on the bank's internal systems and its dedication to customer service, even in sensitive situations. In an environment where financial literacy and access to comprehensive financial products are continually improving, Kumari Bank's proactive stance in integrating insurance benefits with its core offerings positions it favorably. It demonstrates a forward-thinking strategy that not only aims for profitability but also acknowledges its social responsibility. Such initiatives contribute positively to the bank's brand image, fostering a reputation as a reliable and compassionate financial partner. For stakeholders, this translates into a more stable and reputable institution, capable of navigating market challenges while maintaining strong customer relationships. The successful processing of this NPR 1 million claim is not just a transaction; it's a testament to Kumari Bank's commitment to its customers' well-being and a clear indicator of its robust service delivery capabilities.
Nepal Extends EPS Korea Application Deadline Amidst Passport Rush, Department to Operate in Two Shifts
Nepal is currently witnessing an unprecedented surge in demand for passports, primarily driven by the opening of applications for the Employment Permit System (EPS) Korea examination. This overwhelming rush for passport creation and renewal has led to significant pressure on the Passport Department, prompting the government to implement several crucial measures to streamline services and accommodate the high volume of applicants. In response to the escalating service pressure and the resultant delays in passport acquisition, the EPS Korea branch has officially extended the application deadline until Shrawan 20 (August 5, 2024). This extension provides a much-needed reprieve for thousands of aspiring Nepali migrant workers. A significant relief for applicants is the new provision allowing individuals with expired passports to submit their online applications using their old passport details. The requirement for a new, valid passport will only arise later, specifically when filling out the 'job application form' after successfully passing both the language and skill tests. This phased approach aims to reduce immediate bottlenecks and allow more individuals to initiate their application process without delay. To further alleviate the immense crowd at the Passport Department in Tripureshwor, the facility has transitioned to a two-shift operational model. The first shift runs from 7 AM to 2 PM, followed by the second shift from 2 PM to 9 PM. This extended service schedule will remain in effect until Shrawan 22 (August 7, 2024). Demonstrating a strong commitment to public service, the department has also announced that it will remain open on public holidays, including Saturdays and Sundays, from 10 AM to 4 PM. These proactive steps underscore the government's dedication to ensuring that no interested applicant is left behind due to administrative hurdles or capacity constraints. The EPS Korea program holds immense significance for Nepal, serving as a vital conduit for foreign employment and a major contributor to the nation's remittance inflows. This year, under the bilateral understanding between Nepal and South Korea, applications have been invited for a quota of 7,200 workers. The government's swift actions, including improvements in the Passport Department's system and these facilitative measures, are designed to enhance efficiency and accessibility for all eligible candidates. From an economic perspective, the smooth functioning of programs like EPS Korea is critical for Nepal. Remittances from migrant workers constitute a substantial portion of the country's Gross Domestic Product (GDP), bolstering foreign exchange reserves, supporting household incomes, and stimulating domestic consumption. Any disruption or inefficiency in the foreign employment process can have ripple effects across the economy, impacting sectors from banking to retail. Therefore, the government's proactive management of the passport rush is not merely an administrative convenience but a strategic move to safeguard and enhance a key economic pillar. For investors, while this news might not directly impact stock market movements, it offers insights into broader economic trends and governmental efficiency. A government capable of responding effectively to high public demand and streamlining critical services reflects positively on the overall administrative environment, which is a factor in investor confidence. The continued flow of remittances, facilitated by such programs, provides stability to the financial sector and contributes to a healthier economic outlook, indirectly benefiting various industries and investment opportunities within Nepal. The measures taken highlight the government's recognition of the importance of foreign employment and its commitment to facilitating opportunities for its citizens, ultimately contributing to national economic stability and growth.
NADA Expresses Grave Concern Over Eastern Nepal Unrest, Urges Government to Restore Business Stability
The NADA Automobiles Association of Nepal, a prominent representative body for the automotive sector, has voiced profound concern regarding the escalating unrest and violent incidents recently observed in several districts of Eastern Nepal, including Sunsari. The association emphasizes that such disruptions pose a significant threat to the nation's socio-economic fabric and its overall development trajectory. In a press statement issued by NADA President Surendra Kumar Upreti, the association underscored Nepal's unique identity as a multi-religious, multi-linguistic, and multi-cultural nation. Upreti highlighted that the country's greatest strength lies in its social unity and harmony, which are indispensable for progress and stability. While acknowledging the constitutional right of citizens to express their demands peacefully, NADA unequivocally stated that any form of violent activity, vandalism, or actions that undermine social harmony are unacceptable and detrimental to the national interest. Such acts not only violate the rule of law but also erode the trust and cooperation essential for a functioning society and a vibrant economy. The association articulated grave concerns about the adverse economic repercussions stemming from these disturbances. NADA warned that such regrettable incidents not only compromise peace and security but also severely disrupt the daily lives of ordinary citizens, impede industrial and business operations, deter both foreign and domestic investment, and ultimately inflict a negative impact on the entire national economy. The business community, in particular, is experiencing heightened anxiety due to the volatile environment, which threatens operational continuity and future growth prospects. Supply chains are vulnerable to disruption, consumer confidence can plummet, and the overall investment climate becomes uncertain, potentially leading to capital flight and delayed expansion plans. For a developing economy like Nepal, maintaining a predictable and stable environment is paramount for attracting the necessary capital and fostering entrepreneurship. Prolonged instability can also lead to job losses, reduced tax revenues, and a general slowdown in economic activity, impacting the national budget and public services. In light of these pressing issues, NADA has issued a fervent appeal to all concerned parties to exercise utmost restraint and to seek resolutions through constructive dialogue within the framework of legal and democratic processes. The association firmly believes that peaceful negotiation is the only sustainable path to addressing grievances and restoring normalcy. Furthermore, NADA has called upon the Nepal government and all relevant state bodies to take immediate and decisive action to guarantee peace and security across the affected regions. This includes ensuring the protection of citizens' lives and property, which are fundamental prerequisites for any thriving society and economy. The association specifically urged the authorities to prioritize efforts aimed at swiftly normalizing the disrupted business environment, thereby safeguarding livelihoods and economic activity. NADA's General Secretary, Milan Babu Malla, further reiterated the association's stance, urging media outlets to widely disseminate this crucial message. The association concluded its statement with a heartfelt appeal to all Nepali citizens to uphold social harmony, national unity, and mutual respect, encouraging everyone to play a positive and constructive role in fostering a peaceful and prosperous Nepal. The stability of the business environment is directly linked to investor confidence, both domestic and international, and any prolonged period of unrest can have lasting negative effects on the NEPSE market and the broader economic outlook. Therefore, NADA's call for immediate government intervention and a return to normalcy resonates deeply within the financial and business communities, highlighting the critical interdependence between social stability and economic prosperity.
NIC Asia Bank Bolsters Digital Payment Ecosystem with NEPALPAY Card Acquiring Services
NIC Asia Bank Limited, a prominent commercial bank in Nepal, has significantly advanced its digital banking capabilities by enabling NEPALPAY Card acquiring services. This strategic integration, facilitated by Nepal Clearing House Limited (NCHL), marks a crucial step in the bank's commitment to fostering a robust and inclusive digital payment ecosystem within the country. The move allows NIC Asia Bank to not only acquire NEPALPAY cards for its extensive customer base but also to accept international cards operating under the Discover network, including India's popular RuPay cards, across its vast network of ATMs and Point-of-Sale (POS) terminals nationwide. This initiative is a cornerstone of NIC Asia Bank's broader digital transformation strategy, aiming to offer a comprehensive suite of digital payment services under multiple card schemes. By embracing NEPALPAY, the bank reinforces its support for the national card system, aligning with the Nepal Rastra Bank's vision for a more digitized and less cash-dependent economy. For investors, this signals NIC Asia's proactive approach to innovation and its dedication to enhancing customer convenience, which can translate into increased transaction volumes and market share in the competitive banking landscape. The NEPALPAY Card is a pivotal component of Nepal's National Payment Switch (NPS), designed to standardize and streamline domestic payment transactions. As a national card scheme, NEPALPAY facilitates seamless payments within Nepal and extends its reach globally through its strategic partnership with the international Discover Network. This dual functionality is a game-changer, enabling participating banks and financial institutions (BFIs), payment service providers (PSPs), and payment system operators (PSOs) to issue NEPALPAY Cards that are accepted at a wide array of POS and ATM terminals both domestically and internationally. Concurrently, it empowers users of Discover and Discover-partnered cards to conduct transactions effortlessly within Nepal, significantly boosting inbound tourism and international business transactions. The adoption of NEPALPAY has been gaining considerable momentum across the Nepali financial sector. Currently, over 36 banks and financial institutions have subscribed to the NEPALPAY Card scheme, with many in various stages of implementation. As of now, seven BFIs have successfully issued NEPALPAY Cards, while eleven others, including NIC Asia Bank, have enabled acquiring services. This growing participation underscores the industry's collective commitment to strengthening Nepal's digital payment infrastructure and fostering greater financial inclusion. NIC Asia Bank's early adoption of acquiring services positions it as a leader in this national endeavor, potentially attracting a wider customer base seeking versatile and globally accepted payment solutions. NIC Asia Bank's extensive operational footprint further amplifies the impact of this integration. As one of Nepal's leading commercial banks, it serves millions of customers through a vast network comprising 316 branches, 103 extension counters, 33 branchless banking units, and an impressive 604 ATM terminals spread across the nation. Leveraging this widespread infrastructure, the bank is well-positioned to maximize the reach and utility of NEPALPAY Card services, making digital payments more accessible to urban and rural populations alike. This expansion of digital services is not just about convenience; it's about driving economic efficiency, reducing the costs associated with cash handling, and enhancing transparency in financial transactions. For investors, NIC Asia Bank's continuous investment in digital infrastructure and services like NEPALPAY acquiring capabilities demonstrates a forward-thinking management approach. Such strategic moves are crucial for long-term growth, as they enhance operational efficiency, improve customer satisfaction, and open new revenue streams. By supporting a national payment scheme and integrating international card networks, NIC Asia Bank is not only contributing to the modernization of Nepal's financial sector but also solidifying its position as a digitally-driven financial powerhouse, poised for sustained growth in an increasingly digital economy. This move reinforces the bank's commitment to innovation and its role in shaping the future of banking in Nepal.
Tranquility Spa Becomes First Wellness Brand in Nepal To Receive ISO Certification
Tranquility Spa Pvt. Ltd has received ISO 9001:2015 certification from United Registrar of System (USR), a globally recognized certification body accredited under UKAS and IAF, for it's Quality Management System across it's wellness and beauty services. The certification covers therapeutic massage, beauty therapy, steam, sauna, jaccuzzi, gym, swimming pool and tennis facilities, affirming that the spa's operations, hygiene standards and customer service meet internationally bench marked quality standards. The recognition makes Tranquility Spa the only wellness brand in Nepal to hold ISO certification. Operating for over 18 years since its start in Lazimpat, Kathmandu, Tranquility Spa now partners with hotels in Kathmandu, Chitwan, Pokhara, Bhairahawa, and Malaysia. The company employs over 300 professionals and has trained more than 3,500 individuals through its Tranquility International Beauty and Spa Academy
Former NRB Governor Dr. Chiranjibi Nepal: 'Economic Politics' Trapping Nepal's Economy, Urges Prudent Debt Management and Growth Focus
Dr. Chiranjibi Nepal, former Governor of Nepal Rastra Bank (NRB), has issued a stark warning, asserting that 'economic politics' is currently ensnaring the nation's economy. Speaking at a recent dialogue program in Kathmandu titled 'Public Debt: Volume, Mobilization, Productivity, and Future Strategy,' organized by the Nepal Law Society and the Constitution Monitoring Group, Dr. Nepal highlighted critical areas of concern for Nepal's economic trajectory. Dr. Nepal critically examined the prevailing narrative that discourages credit expansion, arguing that such a perception has severely hampered the country's economic vitality. He pointed out that for the past three to four years, credit expansion has stagnated, failing to surpass the 6-7 percent mark. This prolonged period of subdued credit growth, he emphasized, is a significant cause for alarm, as robust credit flow is essential for stimulating business investment, fostering job creation, and driving overall economic dynamism. Challenging widespread negative perceptions surrounding Nepal's public debt, Dr. Nepal clarified that the current public debt-to-Gross Domestic Product (GDP) ratio, standing at approximately 45 percent, is well within international standards and should not be a source of undue panic. He underscored that a substantial portion of Nepal's foreign debt has been secured at remarkably low-interest rates, typically ranging from 0.75 percent to 1.5 percent, coupled with extended repayment periods. This favorable financing structure, he argued, mitigates immediate risks and provides ample time for the nation to manage its obligations effectively. He further noted that institutions like the IMF often provide loans at zero interest, while the ADB's rates are also relatively low, around 2 percent, contrasting this with the significantly higher debt burdens carried by developed nations, such as the United States' $38 trillion debt. The former Governor reiterated his assertion that 'economic-political decisions' are inadvertently creating a trap for the economy. He identified sluggish economic growth and the ineffective utilization of capital expenditure as the primary challenges confronting the nation. Inefficient capital expenditure, he explained, directly impedes long-term infrastructure development, productivity enhancements, and the creation of a conducive environment for sustained economic progress. Dr. Nepal also reaffirmed that maintaining financial stability remains the paramount responsibility of the Nepal Rastra Bank. He stressed the delicate balance the central bank must strike between controlling inflation and fostering an environment conducive to economic growth. While acknowledging the need for vigilance, particularly in light of economic crises observed in neighboring countries like Sri Lanka, he cautioned against an overly restrictive approach to credit that could stifle legitimate economic activity. His remarks serve as a crucial reminder for policymakers to adopt a balanced approach, prioritizing both stability and growth, and to learn from international experiences without succumbing to unnecessary fear, thereby ensuring a resilient and prosperous economic future for Nepal.
Sopan Pharmaceuticals Appoints Rajiv Kumar Sharma as New CEO, Signaling Strategic Growth Ahead
Sopan Pharmaceuticals Limited, a prominent player in Nepal's burgeoning pharmaceutical sector, has announced the strategic appointment of Mr. Rajiv Kumar Sharma as its new Chief Executive Officer. This pivotal leadership transition was formalized during a board of directors meeting held on Wednesday, Shrawan 13, 2083 (July 29, 2026), marking a significant step for the company's future trajectory. Mr. Sharma, a distinguished chartered accountant by profession, brings an extensive and robust background in corporate and financial management to his new role. His expertise as a CA is particularly invaluable in the pharmaceutical industry, where stringent financial oversight, adherence to regulatory frameworks, and astute capital allocation are critical for sustainable growth and operational excellence. Investors and stakeholders can anticipate that his deep financial acumen will be instrumental in navigating the complex economic landscape of the healthcare sector, ensuring fiscal prudence while simultaneously driving ambitious expansion and innovation initiatives. A permanent resident of Shambhunath Municipality, Ward No. 10, Saptari district, Mr. Sharma is a familiar and respected figure within Sopan Pharmaceuticals. Prior to this elevation, he served diligently as the company's Chief Financial Officer (CFO), a role that provided him with an intimate understanding of Sopan's financial operations, market dynamics, and strategic imperatives. His tenure as CFO equipped him with comprehensive insights into the company's strengths, challenges, and opportunities. Furthermore, he had already assumed the responsibilities of Acting Chief Executive Officer before this formal appointment, ensuring a seamless transition and continuity in leadership. This internal promotion underscores the board's profound confidence in his capabilities, leadership qualities, and his deep familiarity with the company's overarching vision and operational framework. The appointment of Mr. Sharma comes at a transformative period for Sopan Pharmaceuticals and the broader Nepalese pharmaceutical industry. Nepal's healthcare sector is undergoing rapid evolution, propelled by increasing health awareness, a growing population, and concerted government initiatives aimed at bolstering domestic drug production. Companies like Sopan Pharmaceuticals play a crucial role in mitigating the nation's reliance on imported medicines, fostering self-sufficiency, and significantly contributing to public health. Under Mr. Sharma's leadership, Sopan Pharmaceuticals is strategically positioned to capitalize on these emerging opportunities, potentially expanding its product portfolio, enhancing its research and development capabilities, and strengthening its market presence across the nation. Investors will undoubtedly be keenly observing how Mr. Sharma's strategic vision will shape Sopan's future trajectory. His proven financial acumen, coupled with his prior experience as CFO and Acting CEO, suggests a strong focus on optimizing financial performance, streamlining operational efficiencies, and potentially exploring new avenues for growth, such as strategic mergers, acquisitions, or collaborative partnerships. The pharmaceutical sector in Nepal, while brimming with potential, also grapples with challenges including intense competition, stringent regulatory requirements, and the imperative for continuous innovation. Mr. Sharma's seasoned leadership will be critical in steering Sopan through these complexities, ensuring unwavering compliance, and fostering a culture of excellence and innovation throughout the organization. This executive appointment is expected to instill renewed confidence among all stakeholders, including employees, business partners, and the investor community. A robust and experienced leadership team is often a key indicator of a company's potential for sustained long-term success and stability. With Mr. Sharma at the helm, Sopan Pharmaceuticals Limited is exceptionally well-positioned to reinforce its commitment to delivering high-quality healthcare solutions and achieving its strategic objectives in the dynamic Nepalese market. This move is a clear and decisive signal of the company's intent to strengthen its leadership and vigorously pursue its growth agenda in the years to come.
Prime Minister Balendra Shah Holds Talks with Madhesh Leaders Over Madhesh Tensions
Prime Minister Balendra Shah has started discussions with leaders of various political parties representing the Madhesh region. The meeting was called to address the current political situation and recent tensions reported in several Madhesh districts, including Sunsari. The high level meeting is taking place at the Office of the Prime Minister and Council of Ministers in Singha Durbar. Discussions are primarily focused on reviewing the security situation in affected areas and finding a peaceful resolution through dialogue and mutual agreement. Prominent Madhesh focused political figures are participating in the talks, including Janamat Party Chairman Dr. C.K. Raut, Loktantrik Samajwadi Party Chairman Mahantha Thakur, senior leader Rajendra Mahato, former Madhesh Province Chief Minister Lalbabu Raut, and Nepal Samajwadi Party Chairman Samim Miya Ansari. Other leaders present include Ram K. Sharma, Prabhu Sah, Amaresh Kumar Singh, Sharat Singh Bhandari, and Jayakanta Raut. According to government officials, the meeting was organized as part of an effort to resolve recent regional unrest peacefully. The primary goal is to maintain local peace, strengthen social harmony, and guarantee safety and security for all citizens.
NRB to Collect 25 Billion from BFI's for 61 Days
Nepal Rastra Bank (NRB) has announced that it will collect deposits worth Rs. 25 billion from banks and financial institutions through a bidding process today. According to a notice published today, the central bank will collect the deposits for a period of 61 days. The bidding will take place on Shrawan 15 (July 31) through the Online Bidding System at 3 Pm. The interest rate will be decided through the bidding process. The minimum amount for bidding has been set at Rs. 10 crore, while the maximum limit is (In multiples of) 5 Crore, up to the total issue amount. However, institutions can submit multiple bids within the total announced amount. Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions approved by NRB are allowed to take part in the bidding. The deposits collected will be returned along with interest on Ashoj 14, 2083 (September 30, 2026).
Janakpurdham Curfew Disrupts Vital Rail Service: Jayanagar-Janakpur-Bhangaha Route Suspended Amidst Security Concerns
Janakpurdham, a pivotal city in Nepal's Terai region, has seen its crucial Jayanagar-Janakpur-Bhangaha rail service come to an abrupt halt following the imposition of a curfew by local administration. This suspension, driven by heightened security concerns, underscores the fragility of regional stability and its immediate impact on public services and economic activity. The Nepal Railway Company, prioritizing passenger safety, announced the indefinite suspension of operations until the curfew is lifted and security conditions are deemed safe for resumption. The decision to suspend the rail service was made with immediate effect after the local authorities in Janakpurdham issued a curfew order across various parts of the city. Ajay Kumar Singh, the Acting Head of Administration at the Nepal Railway Company, confirmed the complete cessation of rail operations during the curfew period. This vital railway line, which connects Jayanagar in India to Janakpurdham in Nepal's Dhanusha district and extends to Bhangaha in Mahottari, serves as a critical artery for both passenger transport and goods movement across the border and within the region. The sudden disruption has left thousands of daily commuters, local traders, and even tourists in a state of considerable inconvenience. For many, the train is not just a mode of transport but a lifeline, facilitating access to markets, educational institutions, healthcare facilities, and employment opportunities. The Jayanagar-Janakpur-Bhangaha route, a symbol of cross-border connectivity and regional development, has been instrumental in boosting local economies by enabling smoother trade and fostering cultural exchanges. Its closure, even temporarily, translates into significant logistical challenges and potential economic losses for businesses reliant on the railway for transporting goods and for individuals whose livelihoods depend on daily travel. While the specific reasons for the curfew have been broadly cited as "maintaining peace and security," such measures often reflect underlying tensions or potential unrest within the region. For investors, particularly those with interests in regional infrastructure, logistics, or local businesses, these events serve as a stark reminder of the non-market risks associated with operating in certain geographies. The ability of local administrations to impose such sweeping restrictions, while necessary for public order, can have immediate and tangible effects on operational continuity and profitability. The Nepal Railway Company's swift action to suspend services highlights its commitment to passenger safety, a paramount concern in times of civil unrest. However, the indefinite nature of the suspension means that the resumption of services is entirely contingent upon the assessment of the security situation by local authorities. Until then, alternative modes of transport will bear the brunt of the displaced passenger and cargo traffic, likely leading to increased costs and travel times. This incident in Janakpurdham underscores the broader challenges faced by developing regions in balancing security imperatives with the need for uninterrupted public services and economic activity. As Nepal continues its path towards economic development and enhanced connectivity, ensuring stable and predictable operational environments for critical infrastructure like railways remains crucial for fostering investor confidence and supporting sustainable growth. The community now awaits the lifting of the curfew, hoping for a swift return to normalcy and the restoration of this indispensable rail link.
Nepal Rastra Bank Mandates PSPs to Boost Digital Tax Payment Incentive Program
In a significant move to accelerate the adoption of digital payment methods for tax collection, Nepal Rastra Bank (NRB), the central bank of Nepal, has issued crucial directives to all licensed Payment Service Providers (PSPs). This initiative aims to bolster the effectiveness of the 'Taxpayer Incentive Gift Program, 2083' launched by the Nepal Government's Inland Revenue Department (IRD). The 'Taxpayer Incentive Gift Program, 2083' is designed to encourage taxpayers to utilize electronic systems for their tax payments, thereby enhancing efficiency, transparency, and convenience in the tax collection process. Recognizing the pivotal role of digital payment platforms in achieving this goal, NRB's Payment Systems Department has instructed PSPs to actively facilitate and promote the program through their mobile applications and services. Under the directive, signed by NRB Executive Director Nischal Adhikari, PSPs are required to implement several key measures to ensure seamless participation and clear communication for taxpayers. These measures are critical for establishing interoperability within the electronic payment ecosystem and maximizing the program's reach and impact. Firstly, all PSPs must integrate a dedicated 'FAQ' (Frequently Asked Questions) section within their mobile applications. This section should specifically address common queries related to the 'Taxpayer Incentive Gift Program, 2083'. The inclusion of an FAQ aims to provide immediate clarity to users, reduce the burden on customer support, and empower taxpayers with readily accessible information, fostering greater confidence in digital transactions. Secondly, PSPs are mandated to send out timely notifications to their customers via mobile apps. These notifications are to commence from Shrawan 16 (July 31st) to pre-inform users about the program, which is officially set to launch on Shrawan 21 (August 5th). Proactive communication is essential to build awareness and ensure that taxpayers are well-informed about the opportunity to participate and potentially receive incentives for their digital tax payments. Lastly, if participation in the incentive program necessitates an update to the user's mobile application, PSPs must clearly communicate this requirement through notifications. This ensures that technical readiness does not become a barrier to entry, allowing all eligible taxpayers to seamlessly engage with the program after ensuring their apps are up-to-date. This strategic intervention by Nepal Rastra Bank underscores the government's commitment to fostering a digital economy and modernizing public services. By leveraging the widespread reach of digital wallets and mobile banking applications, the program is expected to significantly increase the volume of digital tax payments. This not only offers greater convenience and security for taxpayers but also streamlines the administrative processes for the Inland Revenue Department, reducing reliance on cash transactions and enhancing data accuracy for economic planning. For investors, this development signals a growing emphasis on digital infrastructure and financial technology in Nepal. It could lead to increased transaction volumes for PSPs and a broader adoption of digital financial services, potentially boosting the overall digital payment ecosystem. The move is a testament to Nepal's ongoing journey towards a more digitized and efficient financial landscape, promising a more transparent and accessible system for both citizens and the government.
Ten Climbers, Including Five Nepalis, Feared Missing After Avalanche on Pakistan’s Broad Peak
The world renowned climber Nirmal Purja led international expedition team of 10 mountaineers is feared missing after an avalanche struck Broad Peak in Pakistan. The Alpine Club of Pakistan received reports on Thursday that an avalanche had struck the team led by Purja, 43, and there has been no communication from the climbers since, the Associated Press (AP) reported quoting club vice-president, Karrar Haidri. According to the AP, the team consists of five Nepalis, a Pakistani, an Omani, an American, a Chinese and next one whose nationality is not confirmed. Meanwhile, Minister for Culture, Tourism and Civil Aviation Ganesh Paudel has expressed a deep concern to the reports of an avalanche and the loss of contact with Nirmal Purja 'Nims Dai' and fellow Nepali climbers in Pakistan. Taking to his social site, Minister Paudel stated, "We are in regular contact with the Pakistani authorities and receiving updates on the situation". The Minister has expressed hope for the safe return of all Nepali climbers missing in the avalanche.
Rajbiraj Under Indefinite Curfew Amidst Heightened Security Concerns: Implications for Regional Stability and Investor Sentiment
The District Administration Office (DAO) of Saptari has taken decisive action by imposing an indefinite curfew in several sensitive areas within Rajbiraj Municipality, the district headquarters. This measure, effective from 5:00 AM today until further notice, underscores a proactive approach to maintaining law and order amidst what authorities describe as a sensitive security situation. The decision, stemming from a meeting of the District Security Committee, was formally announced through an order issued by Chief District Officer Shyam Krishna Thapa, invoking Section 6 of the Local Administration Act, 2028. This imposition of a curfew signifies a critical development for residents and businesses in the affected zones. Under the stringent terms of the order, all forms of public movement, gatherings, processions, demonstrations, meetings, and sit-ins are strictly prohibited. The specified areas under curfew are geographically delineated to ensure comprehensive coverage of potential flashpoints. To the east, the curfew extends to the Khandokhola (river); to the west, it covers the Judani-Dhalai road section of the postal highway; the northern boundary is marked by Basbitti Chowk of the Rupani road; and to the south, it encompasses the Koshi Paschim main canal, extending into Bishnupur Rural Municipality. These precise boundaries indicate a well-thought-out strategy to contain any potential unrest and ensure public safety. For investors and market participants, such developments in key regional centers like Rajbiraj warrant close attention. While the immediate impact might seem localized, prolonged periods of unrest or curfews can have broader implications for regional economic activity and investor confidence. Rajbiraj, as a significant administrative and commercial hub in the eastern Terai region, plays a role in local supply chains and economic transactions. Disruptions here, even temporary, can affect the movement of goods, daily commerce, and the operational stability of businesses with a presence in the area. The broader context of recent reports of unrest and security concerns in other parts of the eastern region, such as Siraha and Dhanusha, suggests a heightened state of vigilance across several districts. Although this specific incident in Rajbiraj is distinct, it contributes to an overarching narrative of regional instability that can influence investor sentiment towards the overall economic environment. The administration's call for full public compliance with the curfew order highlights the seriousness of the situation and the imperative to restore normalcy swiftly. Maintaining security and public order is paramount for fostering a stable environment conducive to economic growth and investment. Investors often look for predictability and stability in regions where they deploy capital. Therefore, the effectiveness and duration of this curfew, and the subsequent return to peace, will be crucial indicators. Companies with operations, supply chain dependencies, or significant customer bases in the Saptari district and surrounding areas might face temporary operational challenges. Monitoring the situation closely for de-escalation and the lifting of restrictions will be key for assessing any potential short-to-medium term impacts on regional economic performance and, by extension, on the broader market sentiment. The government's ability to manage such situations effectively is a critical factor in maintaining both social harmony and economic stability.
Gold Price Reaches Rs. 285,000 Per Tola; Check How Much it Increases Today
Gold prices have witnessed a moderate rise in the domestic market today, rises by Rs. 1000 per tola to settle at Rs. 285,000 per tola, up from the previous rate of Rs. 284,000 per tola. The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) reported that Tejabi gold price also increases by Rs. 1000 per tola to reach Rs.284,300 per tola, compared to Rs. 283,300 per tola on the previous day. Similiarly, silver prices moved in the same direction, rises by Rs. 50 per tola to Rs.4,360 per tola from Rs. 4,310 per tola on the previous day.
Muktinath Bikas Bank Signs Agreement with Nagarjun Municipality for Concessional Loans
Muktinath Bikas Bank Limited has signed an agreement with Nagarjun Municipality to provide concessional loans aimed at promoting agriculture, tourism, small and medium enterprises and women entrepreneurship to generate local employment and boost economic activity. The agreement was signed by Tej Bahadur Giri, Chief of the Agriculture and Inclusive Investment Department at Muktinath Bikas Bank and Sushila Karki, Acting Mayor of Nagarjun municipaltiy, in the presence of bank staff and represantives of the local body. Under the agreement, eligible entrepreneurs recommended by the municipality can obtain collateral-free loans of up to Rs 200,000 from the bank, depending on the nature of their business. Additionally, eligible borrowers will receive a 100 percent interest subsidy under the municipality's "Concessional Interest Subsidy Procedure, 2080." On the occasion, the bank reiterated its commitment to contributing to entrepreneurship development, expanding financial access, financial inclusion, and sustainable economic development through collaboration with local governments.
Sanakisan Bikas Laghubitta Navigates Profit Contraction with Strong Distributable Earnings and Asset Growth in Q4
Sanakisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL), a prominent wholesale microfinance institution in Nepal, has released its unaudited financial results for the fourth quarter of the last fiscal year, presenting a nuanced picture of its performance. While the institution experienced a contraction in its net profit compared to the previous year, the report underscores robust underlying financial health, characterized by strong distributable earnings, a growing asset base, and effective control over non-performing loans. For the fiscal year ending in the fourth quarter, SKBBL reported a net profit of NPR 653.1 million. This figure represents a 25.36% decrease when compared to the NPR 875 million recorded in the same period of the prior fiscal year. This decline in profitability was primarily influenced by a reduction in core revenue streams. The microfinance institution's net interest income saw a notable dip, falling from NPR 1.7963 billion to NPR 1.27397 billion. Concurrently, operating profit also contracted, moving from NPR 1.27 billion to NPR 930 million. This trend might reflect a challenging operating environment, potentially influenced by factors such as increased competition, evolving interest rate dynamics, or higher provisioning requirements within the microfinance sector. Investors often scrutinize these metrics closely as they indicate the efficiency and profitability of a financial institution's core lending activities. Despite the contraction in net profit, a key highlight for investors is SKBBL's impressive distributable profit. Thanks to a strong foundation of retained earnings and prudent regulatory adjustments, the microfinance institution boasts a substantial total distributable profit of NPR 1.6484 billion as of the end of Ashar. This translates to a robust distributable profit per share of NPR 33.46, based on its paid-up capital. This strong distributable capacity provides a solid basis for the company to offer attractive dividends to its shareholders in the current fiscal year, signaling confidence in its long-term financial stability and commitment to shareholder returns, even amidst short-term profit fluctuations. Furthermore, SKBBL has demonstrated significant growth in its financial base and overall assets. The institution's paid-up capital expanded from NPR 4.3126 billion to NPR 4.9271 billion, reinforcing its capital adequacy and capacity for future growth. Complementing this, the reserve fund stood at a healthy NPR 4.3328 billion, providing an additional buffer against potential risks and supporting its operational resilience. As a wholesale lender, SKBBL plays a crucial role in channeling funds to smaller microfinance institutions and cooperatives. Its net loans to small farmers and other cooperatives increased from NPR 34.30 billion to NPR 35.3929 billion, indicating continued expansion of its lending portfolio and outreach. The overall total assets of the company also grew, rising from NPR 41.50 billion to NPR 41.9924 billion, reflecting a healthy balance sheet expansion. The report also highlighted the institution's strong position in controlling non-performing loans, a critical indicator of asset quality and risk management effectiveness in the microfinance sector. In conclusion, while Sanakisan Bikas Laghubitta's latest quarterly report shows a dip in net profit, a deeper analysis reveals a financially sound institution with significant strengths. Its robust distributable profit, expanding capital base, growing loan portfolio, and effective NPL management position it favorably for sustained performance. For investors, SKBBL presents a compelling case of an institution balancing short-term market dynamics with long-term strategic growth and shareholder value creation, making it a noteworthy entity in Nepal's evolving financial landscape.
Saptakoshi Development Bank Reports Strong Q4 Performance, Significantly Reducing Non-Performing Loans
Saptakoshi Development Bank Ltd. (SAPDBL) has released its unaudited financial statements for the fourth quarter of the last fiscal year, revealing a substantial improvement in its financial health. The report highlights a remarkable increase in net profit and a significant reduction in non-performing loans (NPLs), key indicators that underscore the bank's enhanced operational efficiency and strengthened risk management framework. For the fiscal year ending Ashar Masanta (mid-July), Saptakoshi Development Bank achieved a net profit of NPR 15.04 crore. This represents an impressive 86.18% surge compared to the NPR 8.08 crore recorded in the same period of the previous fiscal year. Such robust growth in profitability is a testament to the bank's improved operational performance and its ability to generate higher earnings. While the net interest income experienced a slight dip, moving from NPR 23.45 crore to NPR 23.34 crore, the bank's operating profit saw a remarkable increase, escalating from NPR 10.68 crore to NPR 24.79 crore. This substantial rise in operating profit, despite a marginal decline in net interest income, suggests effective cost management and potentially higher income from other operational avenues, contributing significantly to the bottom line. A pivotal achievement for SAPDBL has been its success in drastically reducing non-performing loans. The bank managed to bring down its NPL ratio from a concerning 10.65% to a more manageable 6.15%. This reduction is a critical indicator of improved asset quality and more effective credit risk management practices. A lower NPL ratio not only enhances the bank's profitability by reducing the need for loan loss provisions but also boosts investor confidence and strengthens its regulatory standing. Furthermore, the bank's capital adequacy ratio (CAR) has improved from 8.29% to 11.29%. This increase in CAR signifies a stronger capital base, providing a greater buffer against potential financial shocks and aligning the bank more closely with regulatory requirements for capital strength, ensuring long-term stability. Despite these significant strides in profitability and asset quality, Saptakoshi Development Bank is not yet in a position to distribute dividends to its shareholders. The bank continues to grapple with accumulated losses from previous periods. However, the positive performance in the last fiscal year has helped mitigate this challenge, with the accumulated loss reducing from a negative NPR 62.40 crore to a negative NPR 55.88 crore. This reduction is a crucial step towards eventually clearing the deficit and paving the way for future dividend distributions, which will be a key milestone for attracting and retaining investors. In terms of its financial structure, the bank's paid-up capital stands at NPR 83.43 crore, while its reserve fund has grown to NPR 44.80 crore. This growth in reserves further solidifies its financial foundation. The bank has also demonstrated considerable expansion in its business operations. Total deposits surged from NPR 5.337 billion to NPR 8.8852 billion, reflecting increased public trust and successful deposit mobilization strategies. Concurrently, loans and advances to customers increased from NPR 5.0383 billion to NPR 5.5625 billion, indicating a healthy growth in its lending portfolio. The overall size of the bank's total assets expanded from NPR 8.50 billion to NPR 10.113 billion, underscoring its growing market presence and operational scale within the competitive Nepali banking sector. The improvements in Saptakoshi Development Bank's financial health, particularly the reduction in NPLs and the increase in profitability, are encouraging signs for its stakeholders. While the path to dividend distribution is still underway due to historical accumulated losses, the current trajectory suggests a bank on a steady course towards sustainable growth and enhanced financial stability within Nepal's competitive banking landscape. Investors will be keenly watching how the bank continues to manage its legacy issues while capitalizing on its recent operational successes.
SEBON Unveils Consultation Paper to Introduce Short Selling, Margin Lending, and SLB in Nepali Capital Market
The Nepal Securities Board (SEBON) has taken a significant stride towards modernizing the Nepali capital market by initiating the process to introduce advanced securities financing services. In a landmark move, SEBON has publicly released a comprehensive 'Consultation Paper' outlining the framework for 'Margin Lending,' 'Securities Lending and Borrowing' (SLB), and 'Short Selling.' This marks the first instance where SEBON has published such a detailed consultation document, signaling a proactive approach to gauge market readiness and solicit invaluable feedback from all relevant stakeholders. This strategic initiative aligns directly with the Nepal government's budget statement for the fiscal year 2083/84, which explicitly announced the phased introduction of sophisticated market instruments such as intraday trading, short selling, and derivatives. SEBON's current action is a crucial step in materializing this vision, aiming to elevate the domestic capital market to international standards. **A Leap Towards a Competitive and Modern Market** Globally, advanced capital markets leverage services like margin trading, securities lending, and covered short selling to enhance their depth, competitiveness, and overall efficiency. SEBON firmly believes that integrating these instruments will serve as a cornerstone in transforming Nepal's capital market, making it more robust and attractive to a broader spectrum of investors. The board articulated its conviction, stating, "These instruments will prove to be a milestone in making Nepal's capital market international standard and expanding investor participation." The introduction of these mechanisms is expected to inject greater liquidity into the market, foster price discovery, and provide investors with more diverse strategies to manage risk and capitalize on market movements. Margin lending, for instance, allows investors to borrow funds against their securities to purchase more shares, potentially amplifying returns but also increasing risk. Securities Lending and Borrowing (SLB) facilitates the temporary transfer of securities from one party to another, typically for short selling or to cover failed trades. Short selling, a more advanced strategy, involves selling borrowed securities with the expectation of repurchasing them at a lower price in the future, profiting from a decline in value. SEBON's focus on 'covered short selling' indicates a cautious approach, ensuring that sellers must first borrow the shares before selling, thereby mitigating certain risks associated with naked short selling. **Deep Dive into the Consultation Paper** The meticulously prepared consultation paper by SEBON is structured into four pivotal chapters, each addressing a critical aspect of this market transformation: 1. **Current State of Nepal's Capital Market and the Need for Reform:** This section likely provides an in-depth analysis of the existing market infrastructure, its limitations, and the compelling reasons why these new financial services are essential for its evolution. 2. **International Experience, Best Practices, and Lessons for Nepal:** This chapter will offer insights into how similar instruments are implemented and regulated in mature markets worldwide, drawing crucial lessons and identifying best practices adaptable to the Nepali context. 3. **Regulatory Impact Analysis:** A thorough assessment of the potential regulatory implications, challenges, and necessary adjustments to the existing legal and operational framework will be detailed here. 4. **Appropriate Models and Specific Policy Recommendations for Margin Lending, Securities Lending and Borrowing, and Short Selling for Nepal:** This crucial section will propose tailored models and policy guidelines specifically designed for the Nepali market, considering its unique characteristics and developmental stage. Furthermore, the paper meticulously delineates the roles and responsibilities of key market participants, including the Nepal Securities Board itself, the Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSC), securities brokers, banks and financial institutions, and institutional investors. It also comprehensively addresses vital areas such as legal reforms, the modernization of information technology infrastructure, and the implementation of robust risk management measures to ensure a secure and efficient trading environment. **A Call for Collaborative Development** SEBON has extended an open invitation to all stakeholders, including investors, brokers, financial institutions, and market experts, to provide constructive feedback on this consultation paper. This collaborative approach underscores SEBON's commitment to developing a regulatory framework that is both comprehensive and practical. The insights gathered from these suggestions will be instrumental in the subsequent formulation of specific regulations, including the 'Margin Lending Regulations,' 'Securities Lending and Borrowing Regulations,' and 'Covered Short Selling Regulations.' The successful implementation of these new services is anticipated to bring about a paradigm shift in the Nepali capital market. SEBON projects increased market liquidity, enhanced stability, and significant support for the long-term capital mobilization efforts of the private sector. This initiative is poised to unlock new avenues for investment, foster greater market efficiency, and ultimately contribute to the broader economic development of Nepal. Interested parties can access the detailed consultation paper via a link or QR code available on SEBON's official website.
SEBON Orients Merchant Bankers on New IPO Standards; Primary Market White Paper Forthcoming
The Nepal Securities Board (SEBON) has initiated a significant stride towards bolstering the integrity and transparency of the primary capital market. In a recent orientation and interactive program held at its office, SEBON informed chief executive officers and high-ranking officials from various merchant banking institutions about the new 'Standards related to Financial Review for Initial Public Offering, 2082'. This crucial initiative aims to make the public issuance process more responsible, transparent, and qualitatively robust. Effective from Baisakh 1, 2083 (mid-April 2026), these new standards are meticulously designed to enhance the quality, reliability, and financial governance of financial statements submitted by organizations seeking to go public. The program saw the participation of approximately 65 individuals, including SEBON's Chairman, board members, and representatives from various merchant bankers, underscoring the collaborative effort required for such pivotal reforms. Addressing the attendees, Dr. Gopal Prasad Bhatta, Chairman of SEBON, reiterated the board's unwavering commitment to continuous policy reforms aimed at fostering a more organized, transparent, and investor-friendly primary capital market in Nepal. He made a significant announcement regarding the board's preparations to unveil a 'Primary Market Reform White Paper'. This forthcoming white paper is expected to place a strong emphasis on safeguarding investor interests and driving a qualitative transformation within the primary market, signaling a strategic vision for its future growth and maturity. Chairman Bhatta also highlighted the indispensable role of merchant bankers in the primary securities market. He urged them to embrace greater responsibility and proactively champion the protection of investor rights. He expressed confidence that the implementation of these new standards would significantly strengthen the financial health and corporate governance of issuing companies, thereby building greater trust among investors. During the program, Mr. Anandaraj Sharma Wagle, a SEBON board member and President of the Institute of Chartered Accountants of Nepal (ICAN), delivered a detailed presentation on the technical aspects of the new standards. He elaborated on the objectives behind their issuance, the implementation process, and their utility, emphasizing that these standards would serve as a cornerstone in ensuring the reliability of financial statements submitted for public issuance. Queries raised by participating merchant bankers during the interactive session were addressed by SEBON board members, fostering a clear understanding of the new regulatory framework. This comprehensive orientation program is anticipated to facilitate a smoother implementation of the new standards, ultimately enhancing public confidence in the capital market. By elevating the benchmarks for financial scrutiny and corporate governance, SEBON is not only protecting investors but also laying a stronger foundation for sustainable growth and attracting both domestic and international capital into Nepal's burgeoning economy. These reforms are critical for the long-term health and credibility of the Nepalese stock exchange, ensuring that the primary market serves as a reliable conduit for capital formation and wealth creation.
National Kheer Day: A Cultural Festival Driving Significant Economic Activity in Nepal's Dairy Sector
Nepal recently celebrated 'Saun 15,' a day deeply embedded in the nation's cultural fabric, traditionally known as 'Kheer Khane Din' or 'Kheer Eating Day.' This annual observance, which falls in the middle of the monsoon season, serves as a joyous occasion for Nepalis across the country to unwind from the arduous farming activities of Ashar (mid-June to mid-July) and to replenish energy with a nutritious and wholesome dish: Kheer. Far from being merely a culinary tradition, Saun 15 has emerged as a significant economic driver, particularly for Nepal's burgeoning dairy sector, generating over NPR 1 billion in economic transactions in a single day. The cultural and religious significance of Saun 15 resonates from the high hills to the fertile plains of the Terai, and from remote villages to bustling urban centers. On this day, kitchens nationwide are filled with the comforting aroma of Kheer, a delectable rice pudding prepared with milk, rice, ghee, sugar, and an assortment of aromatic spices. This communal culinary experience not only fosters a sense of unity but also underscores the rich diversity of Nepali traditions, as various communities celebrate with their unique customs while sharing the common joy of Kheer. Farmers, in particular, mark the successful completion of rice planting by offering Kheer to deities before partaking in the festive meal themselves, a gesture of gratitude and hope for a bountiful harvest. The month of Shrawan, in which Saun 15 falls, is also sacred to Lord Shiva, leading many to distribute Kheer as 'Prasad' (blessed food) in temples, further intertwining the celebration with spiritual devotion. The economic ripple effect of Saun 15 is substantial and directly impacts the livelihoods of thousands. According to the Nepal Dairy Association, this year's Saun 15 witnessed an unprecedented surge in milk consumption across the country. The association estimated that approximately 10 million liters of milk were consumed nationwide on this single day, translating into an impressive economic turnover exceeding NPR 1 billion. This remarkable figure highlights the immense potential of cultural festivals to stimulate local economies and support vital industries. The increased demand for milk directly benefits rural livestock farmers, who form the backbone of Nepal's agricultural sector. For these farmers, Saun 15 provides a crucial boost in sales and income, offering much-needed relief and encouragement. Recognizing its multifaceted importance, the Government of Nepal officially declared Saun 15 as 'National Kheer Day' in 2077 BS (2020/21 AD). This governmental endorsement has further elevated the festival's profile, transforming it into a national celebration with a clear economic and cultural agenda. This year, the day was celebrated under the inspiring slogan, "Kheer cuisine, respect for farmers, pride of the dairy industry, identity of Nepali culture." This slogan encapsulates the holistic vision behind the observance, emphasizing the preservation of indigenous cuisine, honoring the hard work of farmers, promoting the self-reliance of the dairy industry, and reinforcing Nepal's unique cultural identity. The National Milk Development Board has also played a pivotal role, noting that such festivals are instrumental in promoting domestic dairy production and reducing reliance on imports. Beyond individual households, collective Kheer-feeding programs were organized in various schools, colleges, and offices in the capital, further amplifying the celebration and its economic impact. From a health perspective, medical experts also endorse the consumption of Kheer during the monsoon season. They note that the body's immune system can be compromised during this period, and warm Kheer, made from milk and rice, offers positive health benefits. Enriched with ingredients like walnuts, almonds, coconut, and raisins, Kheer provides essential energy and nutrients, contributing to overall well-being. In essence, Saun 15 is more than just a day for enjoying a traditional delicacy; it is a powerful testament to how cultural heritage can intertwine with economic prosperity. By preserving indigenous culinary practices, it revitalizes local markets, injects significant capital into the dairy industry, and provides tangible support to rural farming communities. This annual festival not only strengthens national unity and cultural identity but also makes a tangible and positive contribution to the broader national economy, showcasing the vibrant interplay between tradition and economic development in Nepal.
Nepal Market Update: Curfew in Siraha's Lahan Amidst Tensions, Sanima Bank Posts Improved Q4 Results
Nepal's economic landscape continues to present a mixed bag of regional challenges and corporate successes. In a significant development from the Eastern Terai, a curfew has been imposed in Siraha's Lahan market following escalating clashes linked to the Kaptanganj incident in Sunsari. This regional unrest casts a shadow over local commerce and daily life, while simultaneously, Sanima Bank Limited (SANIMA) has delivered a positive financial update, reporting improved performance in its fourth-quarter results for the last fiscal year. **Curfew in Lahan: A Response to Escalating Regional Tensions** The decision to impose a curfew in Lahan Municipality, Siraha, came into effect from Thursday afternoon at 4 PM, and will remain in force until further notice. This measure was necessitated by growing tensions and clashes stemming from the Kaptanganj incident in Sunsari, highlighting the fragile security situation in parts of Eastern Nepal. Siraha's Chief District Officer, Surendra Paudel, issued the curfew order, explicitly prohibiting all forms of movement, gatherings, demonstrations, assemblies, meetings, encirclements, and slogan chanting within the designated areas. The restricted zones in Lahan Municipality are extensive, encompassing the area from the East-West Highway eastward to Balan Khola, westward to Saraswati Khola (specifically west of Batika Hotel), and extending a 500-meter radius southward from the East-West Highway. Such stringent measures underscore the seriousness of the situation and the administration's commitment to restoring peace and order. The imposition of a curfew, especially in a bustling market area like Lahan, inevitably impacts local economic activities. Businesses face closures, daily wage earners suffer income losses, and the overall flow of goods and services is disrupted. For investors, regional instability of this nature can lead to dampened sentiment, particularly for companies with significant operations or customer bases in the affected areas. The broader context of recent unrest in Eastern Nepal, as reflected in other news reports, suggests a need for careful monitoring of the socio-political environment and its potential long-term economic implications. Ensuring stability and security is paramount for fostering a conducive environment for investment and economic growth. **Sanima Bank's Robust Q4 Performance Signals Financial Health** In contrast to the regional challenges, Sanima Bank Limited (SANIMA) has provided a reassuring update from the corporate sector. The bank recently unveiled its unaudited financial statement for the fourth quarter of the last fiscal year, indicating a commendable improvement across key financial metrics. According to the published details, Sanima Bank has successfully enhanced its main income, net profit, and dividend capacity when compared to the preceding fiscal year. This positive performance is a strong indicator of the bank's operational efficiency, strategic financial management, and resilience in a dynamic market. Improved main income typically suggests healthy growth in core banking activities, such as interest income from loans and advances, and fee-based services. A rise in net profit directly translates to increased profitability for shareholders and strengthens the bank's capital base. Furthermore, an enhanced dividend capacity signals the bank's ability to reward its investors, potentially through higher cash dividends or bonus shares, which can significantly boost investor confidence and market appeal. Sanima Bank has consistently been a notable player in Nepal's competitive banking sector, known for its prudent lending practices and customer-centric approach. The robust Q4 results not only reflect the bank's individual strength but also offer a glimpse into the broader health of the Nepali banking industry, which remains a cornerstone of the national economy. Such positive corporate earnings reports are crucial for maintaining investor optimism and attracting further capital into the stock market, even amidst regional uncertainties. The bank's ability to deliver improved performance underscores its strong fundamentals and strategic positioning for future growth. **Conclusion** The juxtaposition of regional unrest in Lahan and the strong financial performance of Sanima Bank highlights the multifaceted nature of Nepal's current economic and social landscape. While local administrations grapple with maintaining peace and order in conflict-prone areas, the corporate sector continues to drive growth and demonstrate resilience. For investors, these developments underscore the importance of diversified portfolios and a keen eye on both macro-level stability and micro-level corporate fundamentals when navigating the NEPSE market.
Indefinite Curfew Imposed in Parts of Dhanusha and Siraha Amid Security Concerns
The District Administration Offices (DAOs) of Dhanusha and Siraha have imposed curfew orders in selected areas of the two districts, citing concerns over the prevailing security situation and the need to maintain law and order. In Dhanusha, Chief District Officer Prem Prasad Luintel issued an order imposing an indefinite curfew in several sensitive areas of the district. The decision, taken during a meeting of the District Security Committee, came into effect from 3:30 pm today and will remain in force until further notice. Issued under Section 6 of the Local Administration Act, 2028, the order prohibits movement, public gatherings, processions, demonstrations, meetings, and sit-ins within the designated curfew zones. The administration has warned that anyone violating the order will face legal action under existing laws. According to the DAO, the curfew covers the area stretching from Lakshminiya Haatbazar Chowk in the north to Siurjoda Chowk in the west, from Laxmipur Novwa through a point 500 meters east of MU Steel on Belouni Road to the National Primary School in the east, from the Nagaraine Municipality area to Nagaraine Chowk in the south, and the Siurjoda–Sohni–Manimandap–Nepal Nursery–ISKCON–Janakpur–Dhalkebar Bridge–Bela–Kadari Mosque corridor in the west. The District Administration Office has appealed to the public to strictly comply with the curfew order, stating that the measure has been taken in view of the sensitive situation and to safeguard peace and public security. Meanwhile, the District Administration Office, Siraha has also imposed a curfew in parts of Golbazar Municipality, citing the possibility of a deterioration in the law and order situation. According to an order issued by Chief District Officer Surendra Paudel, the curfew was enforced under Section 6(a) of the Local Administration Act, 2028, following a decision by the District Security Committee in light of recent security concerns and the possibility of protests and disturbances. The curfew is in effect from 2:00 pm today until further notice. It covers the area from Kaharaha Khola in Ward No. 3 along the East-West Highway in the east to Chaurhawa Chowk in the west, and from Sainik Chowk in Ward No. 6 in the north to the vicinity of the Rajakiya Technical Multipurpose Campus in Ward No. 4 in the south. The Siraha administration has urged residents to cooperate by fully observing the curfew orders and warned that legal action will be taken against anyone found violating the restrictions. It also stated that security agencies have been placed on high alert, surveillance has been intensified in the affected areas, and residents have been advised to remain indoors except for essential purposes.
Sanima Bank Ltd.: A Fourteen - Year Financial Performance Review (Q4 2069/70 - Q4 2082/83)
Background of Sanima Bank Limited (SANIMA) Sanima Bank Ltd. (SANIMA) is one of the prominent commercial banks in Nepal. It was established in 2004 A.D. Sanima Bank is promoted by a group of prominent and dynamic Non-Resident Nepalese (NRNs) businesspersons. The bank initially commenced operations in 2004 as a National Level Development Bank. Since February 2012, Sanima Bank has been functioning as an "A" Class Commercial Bank with its registered office at 'Alakapuri', Naxal, Kathmandu. Sanima Bank will start its operations as the 32nd commercial bank of the country from Wednesday Feb 15, 2012 (Falgun 3, 2068 B.S.). Afterward, the bank is operating as one of the most competitive commercial bank. Currently, the bank is serving the nation thorough its 106 full-fledged branches and 28 extension counters spread from all 7 provinces across the country by employing 1,219 staff (As of Annual report 2081/82) nationwide. As of Q4 2082/83, banks total’s assets stood at Rs. 291.21 billion. At the same time, total equity stood at Rs 27.59 billion. How has SANIMA emerged over the period and role as a national level player in own class? Let’s look at its ups and downs on financial performance during this journey (Q4 2069/70 to Q4 2082/83) of 14 years. Balance Sheet Analysis Assets The overall asset size of SANIMA has increased by 13.25 times, from Rs. 21.97 billion to Rs. 291.21 billion. The proportion of Loans and Advances to Customers to Total Liabilities and Equity remained around the same level at 68.67% in the base year to 67.25% in Q4 2082/83. Below are the major asset indicators over the review period. 1. Cash and Cash Equivalents Cash and cash equivalents increased from Rs. 1.68 billion to Rs. 18.96 billion. Holding cash and cash equivalents above regulatory requirement is generally not considered efficient for banks. In this regard, SANIMA has an excess position due to higher liquidity in the market. 2. Loans and Advances to Customers The bank has remarkably expanded its core lending business. Loans and advances increased by 12.98 times, from Rs. 15.09 billion as of Q4 2069/70 to Rs. 195.88 billion by Q4 2082/83. Over the fourteen - year period, the bank achieved remarkable growth in business expansion. 3. Property and Equipment Property and Equipment initially stood at Rs. 46.94 crore and showed an increasing trend and reached Rs. 1.34 billion in Q4 2082/83. This category may also include certain non-banking properties. 4. Total Assets Total assets increased with higher growth during the initial years. Although the growth rate slowed in recent years, assets continued to grow steadily. Overall, SANIMA's asset base expanded by 13.25 times, increasing from Rs. 21.97 billion in Q4 2069/70 to Rs. 291.21 billion in Q4 2082/83. Liabilities Total liabilities (excluding equity) stood at Rs. 19.54 billion in Q4 2069/70. They increased by 13.49 times, reaching Rs. 263.62 billion by Q4 2082/83. Deposits from customers, the bank's core liability, grew at a median annual growth rate of 13.57%, increasing from Rs. 17.78 billion to Rs. 249.11 billion. Meanwhile, total liabilities and equity combined increased from Rs. 21.97 billion to Rs. 291.21 billion. The major liability trends are discussed below. 1. Deposits from Customers Deposits from customers increased at a median annual growth rate of 13.57%. Within total liabilities (excluding equity), deposits accounted for 91% of total liabilities in Q4 2069/70, increased to 95% by Q4 2082/83. This indicates that the bank remains highly dependent on customer deposits and may need to diversify its funding sources by utilizing other financial instruments. 2. Other Liabilities Other liabilities are steadily increasing throughout the review period. From Q4 2069/70 to Q4 2082/83, they increased by 14.10 times. This category reached its highest level in recent review period, which is in increasing trend. 3. Total Liabilities Total liabilities followed a pattern similar to customer deposits, recording a median annual growth rate of 16.73%. Since deposits constitute the largest portion of liabilities, total liabilities closely tracked deposit growth. 4. Equity Analysis Total equity of SANIMA increased at a median annual growth rate of 13.28%. During the same period, share capital grew at a median annual rate of 10%, while reserves increased at a median annual rate of 23.85%. Profit and Loss Analysis 1. Interest Income and Expenses Interest income and interest expense represent the bank's core revenue-generating activities and the cost of funding those assets, respectively. Interest income declined after reaching its peak of Rs. 21.61 billion in Q4 2079/80. Thereafter, both interest income and interest expense decreased steadily. By Q4 2082/83, interest income had fallen to Rs. 16.60 billion. During the declining interest rate environment, SANIMA’s net interest income continued to increase. Although the interest spread rate narrowed, the bank appeared to have successfully expanded its lending business. 2. Net Fees and Commission Income Another positive aspect of SANIMA is the steady growth in its net fees and commission income. SANIMA earned Rs. 1.49 billion in Q4 2082/83, representing a significant increasement of 63.99 times over review period. 3. Operating Profit and Net Profit Operating profit reflects the bank's profitability before taxation and provisioning, while distributable net profit represents earnings attributable to shareholders. SANIMA recorded its highest-ever net profit of Rs. 3.55 billion in Q4 2082/83. Overall, the bank has maintained a steady growth trend in net profits. Over the review period, the bank has achieved media growth rate of 30.27 percent in net profits. Expenses Interest expense remains the bank's largest expense and is considered the primary direct cost in the banking industry. This expense has shown a declining trend. However, persistently lower interest expenses may make it more challenging for the bank to retain depositors' funds. Other operating expenses have remained at a moderate level. Personnel expense of SANIMA is in increasing trend. Tax liability is directly related to profit. Rising profit increases tax liability of SANIMA. Trends in Key Performance Indicators Earnings Metrics Earnings Per Share (EPS) The bank's Earnings Per Share (EPS) has experienced considerable stable over the past ten fiscal years, reflecting bank’s strength to absorb external shock. The profitability remain relatively stable. EPS remained above Rs. 15 and in increasing trend from 2080/81. A sharp decline from Rs. 34.17 in 2072/73 to Rs. 18.85 in 2073/74 represents the higher decline in earnings performance during the review period. The bank recorded an stable recovery with EPS rising to Rs. 28.04 on 2075/76 from Rs. 18.85 in 2073/74, the trend fluctuating with lower spread in the series. As of Q4 2082/83, EPS reached Rs. 24.92. Q4 2082/83 closed with Distributable EPS of Rs. 20.85, indicating that profitability has stable compared to the last year, it is ascending to the peak achieved in 2082/83. Overall, the long - term trend suggests that the bank has successfully stabilizing profitability even in the various earnings shock. Efficiency Measures Return on Equity (RoE) RoE broadly mirrors the movement in EPS. The ratio declined sharply to 14.35% during Q4 2073/74 due to weak profitability. It rebounded to 18.85% in Q4 2075/76, afterward RoE is in declining trend this is because of equity stably increasing meanwhile profit is fluctuating and profit growth rate is not significant. FY2082/83 recorded 13.23%, reflecting improved earnings generation from shareholders' equity. Although current returns not a remarkable own previous level but can say the bank has restored a healthy profitability profile. Return on Assets (RoA) RoA followed a similar trajectory. It achieved highest RoA 2.06 on Q4 2075/76 deep the lowest at 0.98% on Q4 2081/82. The ratio recovered afterward, in Q4 2082/83 recorded 1.22%, the highest level in the last five years. This indicates the bank retaining good return on asset and efficiency in utilizing total assets to generate profits. Valuation Multiples Price-to-Earnings (P/E) Ratio The exceptionally high 31.17 times P/E in Q4 2070/71 was primarily driven market sentiment and stock price in ascending trends as well as SANIMA's earnings were also on an upward trend. This ratio should not be evaluated in isolation; it should be compared with industry peers. Over the last five years, the P/E ratio has fluctuated between 12 and 20 times, suggesting relatively stable market valuation. Price-to-Book (P/B) Ratio The P/B ratio remained close to 1.67 times in Q4 2079/80 lower in over review period. A marginaly increase to 1.86 times on Q4 2082/83. Since then, the ratio has stabilized below 3 times. Q4 2082/83 recorded 1.86 times, median pb ratio of SANIMA stay at 2.31 times. The ratio increased to 1.86 times in Q4 2082/83, both the share price and net worth have shown an increasing trend. Indicating the market continues to value the bank well above its book value, reflecting positive investor expectations. Health Indicators The Capital Fund to Risk-Weighted Assets Ratio never exceeded 16%. SANIMA's risk-weighted assets did not fluctuate significantly over the period indicating smoot and efficient assets management capacity on such assets. It stood at 13.1% in Q4 2082/83. The NPL ratio has shown a consistent upward trend over the review period. In last ten year, it increased from 0.01% in Q4 2073/74 to 2.87% in 2082/83, indicating gradual deterioration in loan quality. This ratio increased in recent years with higher rate, this is a matter of concern. The cost of funds declined significantly from the peak level 8.27% in Q4 2079/80 to 3.51% in Q4 2082/83, reflecting easing interest rates and lower deposit costs. Similarly, Base Rate declined from 10.15% to 4.91% just over the last four years. Interest Spread remained at lower side, SANIMA median spread rate 3.98% in study base year it was 4% to 3.39% the most recent review period, indicating compliance with NRB directives and increasing competition. This may put pressure on profit margins. Dividend History The bank's dividend history demonstrates that shareholder returns have closely followed its earnings performance. Dividend payouts weakened significantly during periods of lower profitability. Profitability may be affected by economic or policy shocks, business slowdown or higher NPL provisioning. SANIMA has distributed median total dividends of 14.15 percent. Another aspect of SANIMA didn’t leave shareholder hand empty based on the fourteen-year reviewed period. Data: The data for this article has been taken from SS Pro by ShareSansar.
NEPSE Grapples with Investor Confidence Amidst High Supply and Regional Tensions: An Expert's Market Outlook
The Nepal Stock Exchange (NEPSE) has been navigating a challenging period, marked by a palpable lack of investor confidence and persistent selling pressure. Despite intermittent attempts by market operators to drive prices higher, any modest gains of NPR 10-20 are swiftly met with a wave of sell orders, effectively stifling upward momentum. This struggle is compounded by various factors, including the ongoing unrest in Eastern Nepal, which some market participants believe is contributing to the subdued sentiment. Furthermore, stringent government policies and administrative actions have been cited as deterrents, overshadowing recent policy easements that might otherwise have bolstered market activity. In this complex environment, technical analyst Rajan Subedi offers a nuanced perspective on the market's current trajectory. Subedi highlights a significant "supply heavy" situation, where the sheer volume of shares available for sale outweighs demand. Technically, the market had shown signs of breaking a downtrend but failed to sustain momentum, notably failing to respect the 2560 order block based on the Smart Money Concept. Instead, it dipped further to 2545, a move Subedi describes as a "liquidity sweep." While the market did rebound from the crucial Fibonacci 0.5 to 0.618 "golden ratio" or optimal trade entry zone, it has since encountered strong rejection at higher levels, forming a "break-away gap." Subedi anticipates a potential correction, with the NEPSE index possibly retreating to the 2630 or 2610 levels. He attributes the operators' diminished confidence partly to increased scrutiny and actions from the new government and the Balen Shah administration, which has initiated investigations and crackdowns on market manipulation. Despite these headwinds, Subedi suggests that the market is unlikely to establish a new low, indicating a potential floor in the current correction. For individual investors, Subedi strongly advises against solely focusing on the NEPSE index. Instead, he recommends a meticulous examination of individual stock technicals and fundamentals. He points out that stocks showing volumetric activity in demand zones or undergoing prolonged accumulation phases are poised for upward movement. Citing examples like HPPL and NRN, where institutional investment and profit-boosting strategies yielded positive results, Subedi emphasizes the power of institutional demand. He suggests that investors should daily analyze the top 40 stocks by gain, turnover, and volume from the Nepal Stock Exchange website. Rather than diversifying across 30-40 stocks, which might not yield significant returns even if the market reaches 3200, Subedi advocates for tracking a select few (4-5) quality stocks where "smart money" is active. The focus, he asserts, should be on momentum-driven stocks rather than passively observing the broader index. Subedi also shares insights into his personal trading strategy, which primarily involves identifying areas where sell-side liquidity has been taken and observing bullish divergences in the Relative Strength Index (RSI). He places significant importance on the Fibonacci 0.786 level for entry and exit decisions. His approach is to enter positions when the market revisits "unmitigated order blocks" (areas where selling occurred but have not been retested) and to exit if targets are met or stop-loss levels are breached. Essentially, his strategy revolves around buying in demand zones and selling in supply zones. Regarding the activities of "smart money," Subedi reveals that institutional players are currently seeking opportunities to exit positions where they might be "trapped." He explains that smart money typically engages in "silent accumulation" and "loud distribution." A key indicator for retail investors to watch out for is when positive news about a particular stock becomes pervasive across various platforms; this often signals that the stock is in its distribution phase. Operators, he warns, frequently utilize charts and news to entice and trap retail investors. Therefore, he advises investors to analyze charts and volume patterns to discern whether a stock is in an accumulation, manipulation, mark-up, or distribution phase. Despite the prevailing challenges, Subedi believes that opportunities always exist for astute traders. Even during periods when the market index hovered between 1800 and 2200, sectors like hotels and finance witnessed rallies. The crucial skill, he notes, is the ability to shift focus to stocks exhibiting significant volumetric activity. Currently, he observes accumulation in the hydropower and some microfinance sectors, and he anticipates a potential "small rally" in the banking sector. However, he reiterates that the fundamental issue remains investor confidence. He urges the government to foster an environment conducive to investment and business, rather than intimidating investors and entrepreneurs. A major contributor to the current market supply, according to Subedi, is the influx of Initial Public Offerings (IPOs). Many investors who initially invest a modest NPR 5,000 tend to sell their shares as soon as their investment reaches NPR 50,000, often using the proceeds for consumer goods like mobile phones, rather than reinvesting in the secondary market. This trend prevents capital from recirculating within the market, disrupting the demand-supply balance. To address this, Subedi stresses the importance of educating investors about the "power of compounding." He also advocates for reputable companies to enter the market through "book building" processes and for regulatory bodies to prevent struggling companies from launching IPOs, which often end up burdening retail investors. Subedi identifies several common mistakes made by investors, with "overtrading" being the most significant. He advises patience, suggesting that if a favorable market setup isn't present, investors should be prepared to wait for up to six months. However, many investors, driven by the availability of funds, prematurely force setups, leading to undue stress. Another prevalent issue is greed, which prevents investors from booking profits on small gains (NPR 10-20) and a reluctance to implement stop-loss orders. He emphasizes that adherence to a well-defined system, strategy, and discipline is paramount to success. Investors should learn to filter out market "noise," especially rumors from social media groups, and instead rely on official media and their own technical analysis. Looking ahead, Subedi does not foresee an immediate breakthrough to the 3000 or 3200 levels, primarily due to the absence of strong accumulation. While discussions around intraday trading and short selling are positive developments for experienced traders, he cautions that these can be highly risky for uninformed retail investors. Therefore, he underscores the importance of continuous learning, viewing expenses incurred for education as an investment rather than a loss. His final advice is to avoid excessive optimism in the current market. For those who are currently "trapped" in positions, he suggests using any market rallies as opportune moments to exit. He concludes by reminding investors that market operators are often waiting for buyers, urging everyone to trade with utmost caution and awareness. Amidst this detailed market analysis, it is worth noting that Sanima Bank Limited (SANIMA) has recently published its unaudited financial statements for the fourth quarter of the last fiscal year. The report indicates an improvement in the bank's core income, net profit, and dividend capacity compared to the previous fiscal year, signaling a positive corporate performance in an otherwise challenging economic landscape.