Latest NEPSE News & Share Market Updates
Nepali Gold Market Experiences Significant Surge and Volatility, Prices Cross NPR 3 Lakh Per Tola
The Nepali gold market witnessed a dramatic week of trading, with prices experiencing both significant surges and notable volatility. Over the past week, the price of gold per tola increased by a substantial NPR 4,700, ultimately crossing the psychological barrier of NPR 300,000. This upward trajectory culminated in the price reaching NPR 301,600 per tola by Friday, Saun 29 (approximately mid-August), compared to NPR 296,900 on Saturday, Saun 23. According to data released by the Nepal Gold and Silver Dealers' Association (NEGOSIDA), the week began with a sharp rise. On Sunday, Saun 24, gold prices surged by NPR 4,800 in a single day, pushing the per tola rate to NPR 301,700. This initial jump set the tone for a week characterized by dynamic price movements. The momentum, however, was not entirely sustained, as Monday, Saun 25, saw a slight correction with prices dipping by NPR 200 to settle at NPR 301,500. The most significant single-day increase occurred on Tuesday, Saun 26, when gold prices skyrocketed by an impressive NPR 6,400, reaching a peak of NPR 307,900 per tola. This substantial leap underscored the strong underlying demand and global factors influencing the precious metal. Following this peak, the market experienced a series of downward adjustments. On Wednesday, Saun 27, prices decreased by NPR 1,200, bringing the rate to NPR 306,700. This trend continued on Thursday, Saun 28, with another decline of NPR 500, settling at NPR 306,200 per tola. The week concluded on Friday, Saun 29, with a further significant drop of NPR 4,600, bringing the price back to NPR 301,600, which still represented a net gain of NPR 4,700 over the seven-day period. This intense volatility in the Nepali gold market is often a reflection of broader international trends. Gold, traditionally viewed as a safe-haven asset, tends to appreciate during periods of global economic uncertainty, geopolitical tensions, or inflationary pressures. Investors often flock to gold to preserve wealth when conventional financial markets appear unstable. The recent movements could be attributed to a combination of factors, including fluctuations in the international gold market, the strength of the US dollar, and local demand dynamics. For Nepali investors and consumers, gold holds immense cultural and economic significance. It is not only a popular choice for investment but also an integral part of cultural traditions, particularly during weddings and festivals. The crossing of the NPR 300,000 mark per tola is a significant milestone, potentially influencing purchasing decisions and investment strategies. While the recent surge offers attractive returns for existing holders, it also presents a higher entry barrier for new buyers. Looking ahead, the trajectory of gold prices in Nepal will largely depend on global economic indicators. Key factors to watch include inflation rates in major economies, interest rate decisions by central banks like the US Federal Reserve, and any escalation or de-escalation of international conflicts. A weaker US dollar typically makes gold more affordable for holders of other currencies, thereby increasing demand. Conversely, rising interest rates can make non-yielding assets like gold less attractive compared to interest-bearing investments. The Nepal Gold and Silver Dealers' Association will continue to monitor these dynamics closely, providing crucial insights into the evolving market landscape. Investors are advised to stay informed and consider the inherent volatility of the commodity market when making decisions.
NEPSE Concludes Week with Marginal Decline Amidst Reduced Trading Activity
The Nepal Stock Exchange (NEPSE) concluded the trading week with a marginal decline, reflecting a cautious sentiment among investors. The benchmark NEPSE index shed approximately 6.26 points, or 0.24%, closing at 2643.83 points, down from last week's close of 2650.09 points. This modest retreat indicates a period of consolidation after previous movements, with market participants carefully assessing economic indicators and corporate performances. Throughout the five trading days of the week, the market displayed mixed signals. NEPSE registered positive movements on three days, suggesting underlying resilience and buying interest in specific counters. However, two negative trading sessions ultimately led to the overall weekly decline, highlighting the prevailing volatility and the influence of profit-booking activities. Beyond the main index, the Float Index, which represents the freely tradable shares, experienced a slight dip of 0.03 points. In contrast, the Sensitive Index, tracking the performance of 'A' class companies, showed a modest gain of 1.17 points, while the Sensitive Float Index also edged up by 0.23 points. These movements suggest that while the broader market faced pressure, larger, more established companies exhibited relative stability or even slight growth. A notable characteristic of the week was the noticeable reduction in trading activity. The average daily turnover for the week stood at NPR 3.86 billion, a significant decrease of 9.94% compared to the previous week's average of NPR 4.29 billion. This decline in liquidity was also reflected in the average daily number of shares traded and the average daily number of transactions, both of which fell by 7.89%. Such a reduction in trading volume often accompanies periods of market uncertainty or a lack of strong directional catalysts, as investors adopt a wait-and-see approach. Consequently, the total market capitalization of NEPSE also saw a slight contraction, decreasing by NPR 6 billion to NPR 45.47 trillion from NPR 45.54 trillion at the close of the previous week. Sectoral performance presented a varied picture. Out of the thirteen sub-indices, only three managed to post gains, while the remaining ten experienced declines. The Hotels and Tourism sub-index emerged as the top performer, registering a commendable increase of 0.68%, adding 49.52 points to close at 7338.95 points. This upward movement could be attributed to renewed investor confidence in the tourism sector's recovery or specific company news within the segment. The Microfinance and 'Others' sub-indices also recorded marginal gains of 0.24% each, indicating selective interest in these areas. Conversely, the Trading sub-index suffered the steepest decline, plummeting by 4.37% or 148.04 points, to settle at 3239.86 points. This significant drop suggests a strong bearish sentiment or specific negative developments impacting companies within this sector. In terms of individual stock performance, Ghalemdi Hydro led the gainers, with its share price surging by 9.21%, closing at NPR 249 from NPR 228 last week. Khani Khola Hydropower also saw a robust increase of over 9%. On the losing end, Mahila Laghubitta Bittiya Sanstha experienced a substantial drop of 21.05%, while Aatmanirbhar Laghubitta Bittiya Sanstha also saw its share price fall by approximately 11.5%. These sharp movements in individual stocks often reflect company-specific news, earnings reports, or shifts in investor perception. The week also saw the listing of 12 million shares from two companies on NEPSE: Mount Everest Power Development and Sarbottam Paints. Such listings typically add new investment opportunities to the market, potentially diversifying portfolios for investors. A floor sheet analysis revealed that Mandu Hydropower, Mai Khola Hydropower, and Nepal Bank were among the most popular stocks for buying, indicating strong investor interest. Conversely, Shwet Ganga Hydropower & Construction, Makar Jitaya Suri Hydropower, and Prabhu Mahalaxmi Life Insurance were prominent on the "Most Popular Sell Stock" list, suggesting profit-taking or a bearish outlook on these particular scrips. Overall, the past week on NEPSE was characterized by a slight downward correction and a noticeable slowdown in trading momentum. While some sectors and individual stocks demonstrated resilience, the broader market experienced a cautious retreat. Investors will likely be closely monitoring upcoming corporate earnings, macroeconomic indicators, and regulatory developments to gauge the market's direction in the coming weeks.
Microfinance Sector Navigates Challenges: Q4 Reports Reveal Mixed Performance Amidst Rising NPLs
Nepal's microfinance sector has concluded the fiscal year 2079/80 with a mixed bag of financial results, as institutions released their fourth-quarter reports. The period highlights both robust profitability for some key players and significant challenges, particularly a concerning rise in non-performing loans (NPLs) that has put a damper on overall sector growth and dividend capacity. While a few large microfinance institutions (MFIs) managed to cross the impressive NPR 1 billion profit mark, the broader landscape reflects an industry grappling with loan recovery issues and regulatory constraints. Leading the pack in terms of net profit is Chhimek Laghubitta Bittiya Sanstha, which reported a substantial net profit of NPR 1.2989 billion for the fiscal year. This stellar performance solidifies its position as a dominant force within the microfinance landscape. Following closely is Jeevan Bikas Laghubitta Bittiya Sanstha, which also achieved a remarkable milestone by earning NPR 1.0822 billion in net profit, underscoring the potential for high returns in this segment despite prevailing headwinds. Other notable performers include Deprox Laghubitta Bittiya Sanstha, which posted a respectable net profit of NPR 989.4 million, nearing the billion-rupee threshold. However, the spectrum of profitability was wide, with some smaller institutions like Ween Nepal Laghubitta Bittiya Sanstha reporting a modest net profit of just NPR 8.3 million, indicating the varying scales and operational efficiencies across the sector. A critical challenge casting a shadow over the microfinance sector's performance is the escalating rate of non-performing loans. The inability to recover invested capital in a timely manner has directly impacted the profitability of many institutions, preventing the expected improvement in their financial health. Nesdo Samriddha Laghubitta Bittiya Sanstha recorded the highest NPL ratio at a staggering 20.66%, signaling significant asset quality concerns. Dhaulagiri Laghubitta Bittiya Sanstha and Nerude Mirmire Laghubitta Bittiya Sanstha also faced substantial NPLs, reporting 20.52% and 19.86% respectively. In stark contrast, Support Microfinance Bittiya Sanstha demonstrated commendable risk management, keeping its NPLs limited to a mere 2.16%, setting a benchmark for its peers. This disparity in NPLs highlights the urgent need for enhanced credit assessment and recovery mechanisms across the industry. From an investor's perspective, dividend capacity remains a key metric. Jeevan Bikas Laghubitta Bittiya Sanstha emerged as the most attractive in this regard, boasting an impressive dividend capacity of 80.04%. Nesdo Samriddha Laghubitta Bittiya Sanstha and Chhimek Laghubitta Bittiya Sanstha also showed strong potential with dividend capacities of 69.17% and 59.72%, respectively. However, it is crucial for investors to note that the actual dividend distribution by microfinance companies is subject to regulatory limits imposed by Nepal Rastra Bank, which often restricts them from distributing dividends commensurate with their full capacity. Furthermore, several institutions, including Forward, Nerude Mirmire, Samudayik, Ganapati, Manushi, Dhaulagiri, and Ween Nepal Laghubitta, reported negative dividend capacity, implying they are currently not in a position to distribute profits to their shareholders. In terms of Earnings Per Share (EPS), a measure of a company's profitability, CYC Nepal Laghubitta Bittiya Sanstha stood out with an impressive EPS of NPR 110.66. This figure reflects the company's strong capital utilization and efficiency in generating profits. Global IME Laghubitta Bittiya Sanstha and Jeevan Bikas Laghubitta Bittiya Sanstha also reported robust EPS figures exceeding NPR 61, indicating healthy operational performance. The Q4 reports collectively paint a picture of a microfinance sector at a crossroads. While top-tier institutions continue to demonstrate resilience and strong profitability, the pervasive issue of rising NPLs poses a systemic risk that demands immediate attention. For investors, a nuanced understanding of individual company performance, coupled with an awareness of broader sector challenges and regulatory environments, will be crucial in navigating this dynamic segment of Nepal's financial market. The industry's ability to mitigate credit risks and enhance loan recovery will be pivotal for sustainable growth and improved shareholder returns in the coming fiscal years.
Nepal's EV Battery Recycling Challenge: Industry Leader Urges Comprehensive Policy Beyond Importer Responsibility
Akash Golchha, a prominent figure in Nepal's automobile industry and founder of the Nepal Automobiles Importers and Manufacturers Association (NAIMA), has issued a critical call for a robust and comprehensive policy framework to manage battery waste in the country. Speaking at a recent NAIMA-organized dialogue on 'Battery Recycle and Ethanol Blending,' Golchha emphasized that the responsibility for battery recycling cannot solely rest on vehicle importers. He advocated for the establishment of dedicated recycling companies, drawing parallels with successful models in India. Golchha highlighted that the challenge extends beyond electric vehicle (EV) batteries to include those found in mobile phones, laptops, and other electronic devices. He underscored the urgent need for a systematic approach to battery management, lamenting the current absence of clear legal provisions and a comprehensive understanding of the situation by the government. The open border with India further complicates matters, as many old mobile and laptop batteries are informally transported across the border or simply discarded in rivers and landfills, posing significant environmental hazards. A key point raised by Golchha was the distinction between managing traditional lead-acid batteries and modern lithium-ion batteries. While lead-acid batteries often retain some market value, discouraging their indiscriminate disposal, the situation for lithium-ion batteries is starkly different. Current regulations tend to place the onus of battery management on vehicle importers. However, Golchha pointed out that importers typically only receive batteries back under warranty claims. There is a critical lack of legal clarity regarding the responsibility for batteries from vehicles damaged in accidents or those that have reached their end-of-life outside of warranty periods. This ambiguity could unfairly penalize importers, even when the batteries are no longer in their possession but rather with consumers who might dispose of them improperly. To address this multifaceted problem, Golchha proposed a system where responsibility is shared among all stakeholders: the government, consumers, and relevant industry players, rather than being exclusively borne by importers. He also shed light on the difficulties associated with exporting batteries from Nepal. Current provisions often require a specific value for battery exports, yet importers frequently acquire used batteries at zero cost. Golchha suggested that establishing a fair market value for exported batteries could significantly curb their diversion into the grey market, necessitating clear legal frameworks to facilitate this. Drawing inspiration from India, where the government provides a rebate of NPR 2 to 5 per kilogram for battery recycling, Golchha urged Nepal to adopt similar incentive-based policies. He noted that lead-acid batteries are currently exported to India without taxation, highlighting a missed opportunity for value creation and formalization within Nepal. For lithium-ion batteries, even in the absence of full-fledged recycling infrastructure, Golchha suggested that 'black mass' – the processed material containing valuable metals – could be exported to India for further refinement, thereby adding value to the domestic economy. Golchha cautioned against the government imposing stringent rules without first developing the necessary infrastructure and clear guidelines, citing potential pitfalls similar to those experienced in Nepal's steel industry. He reiterated that in India, battery management and recycling are handled by specialized companies, not directly by vehicle importers. Therefore, he strongly recommended that the Nepali government legally license and empower dedicated recyclers to undertake the collection and processing of batteries, ensuring a structured and environmentally sound approach to this growing waste stream. The development of such policies is not merely an environmental imperative but also an an economic opportunity, positioning Nepal to manage its waste responsibly while potentially fostering a new segment of the circular economy.
Nepal Government Imposes Strict Controls on Foreign Travel for Civil Servants: Mandatory Pre-Approval and Knowledge Sharing Introduced
The Government of Nepal has introduced stringent new regulations governing the foreign travel of civil and government employees, signaling a decisive move towards enhanced fiscal discipline, accountability, and institutional capacity building within the public sector. These comprehensive guidelines, spearheaded by the Office of the Prime Minister and Council of Ministers, aim to streamline international engagements, ensure judicious use of state resources, and maximize the tangible benefits derived from such excursions. A cornerstone of the new policy is the mandatory requirement for pre-approval from the Prime Minister's Office (PMO) before any employee can even be nominated for foreign travel. This marks a significant departure from previous practices, where nominations often preceded the approval process. Under the revised framework, ministries, commissions, and other governmental bodies are now strictly mandated to secure the PMO's 'green light' prior to initiating any nomination procedures. This proactive measure is designed to curb unnecessary travel, prevent last-minute approvals, and ensure that every proposed foreign engagement aligns with national priorities and budgetary constraints from the outset. The government emphasizes that any foreign travel or nomination undertaken without this crucial pre-approval will be deemed invalid and will not be permitted. Beyond mere control, the new regulations also place a strong emphasis on institutionalizing the knowledge and skills acquired during international assignments. Recognizing that foreign travel, training, workshops, seminars, and conferences represent valuable opportunities for professional development, the government now requires returning employees to actively share their insights. Specifically, civil servants who participate in any form of international exposure are now obligated to disseminate the knowledge, skills, and best practices they have gained among their colleagues within their respective organizations. This mandatory knowledge transfer must occur within five working days of the employee's return to office. This innovative provision is designed to transform individual learning into collective organizational growth. By ensuring that the benefits of foreign travel are not confined to the individual but are systematically integrated into the broader governmental machinery, the policy aims to enhance overall efficiency, foster innovation, and improve service delivery. It underscores a commitment to leveraging international experiences for the betterment of public administration, ensuring that state investments in foreign engagements yield a demonstrable return in terms of improved governance and policy implementation. The Prime Minister's Office has issued clear directives to all governmental entities, emphasizing strict adherence to these new standards. A robust monitoring mechanism is expected to be put in place to ensure compliance and transparency. This initiative is touted as a pivotal step towards fostering greater accountability in public spending, preventing the misuse of state funds on unproductive travel, and ensuring that every foreign trip is purposeful and yields measurable outcomes. By enhancing oversight and demanding tangible results, the government seeks to bolster public trust and demonstrate a commitment to prudent financial management. For investors and the general public, these reforms signal a broader commitment by the government to improve administrative efficiency and fiscal responsibility. While not directly impacting market dynamics, such measures contribute to a more stable and predictable governance environment, which can indirectly foster investor confidence. The emphasis on institutional learning and resource optimization reflects a strategic approach to public sector management, aiming to build a more competent and accountable bureaucracy. This move is expected to streamline government operations, potentially leading to more efficient policy formulation and implementation in the long run, thereby contributing to overall economic stability and growth.
NADA Mobility Expo Draws Over 77,000 Visitors in First Three Days, Signifying Robust Auto Market Interest
The ongoing NADA Mobility Expo in Kathmandu has successfully captivated a significant audience, drawing over 77,000 visitors within its first three days. This impressive turnout underscores a vibrant and growing interest in the automotive sector across Nepal, reflecting evolving consumer preferences and increasing purchasing power. The organizers reported a steady stream of attendees, with 29,000 visitors on the first day, followed by 26,000 on the second, and an additional 22,000 on the third day, demonstrating sustained public engagement. The expo, a pivotal event for the Nepalese automotive industry, showcases an extensive array of vehicles from more than 55 renowned brands. A highlight of the exhibition has been the unveiling of 52 new models, ranging from budget-friendly options to high-end luxury vehicles. Four-wheelers on display span a wide price spectrum, from approximately NPR 1.6-1.7 million to over NPR 30 million, catering to diverse market segments. Beyond cars, the two-wheeler segment has particularly resonated with the youth demographic, indicating a strong demand for personal mobility solutions among younger consumers. Visitors to the expo have shown keen interest in critical aspects of vehicle ownership, moving beyond mere aesthetics. Their inquiries have focused on practical considerations such as battery capacity, motor performance, driving range, and the crucial aspect of after-sales service. Furthermore, potential buyers are meticulously evaluating battery warranties and the potential resale value of vehicles, signaling a more informed and discerning consumer base. This shift towards practical and long-term value considerations is a healthy sign for the industry, pushing manufacturers and dealers to offer more robust and reliable products. To attract and convert this engaged audience, participating companies have rolled out a suite of attractive incentives. These include significant price discounts, complimentary one-year vehicle insurance and road tax, free servicing packages, and access to subsidized loan facilities. The presence and active participation of banks, financial institutions, and insurance companies at the expo further highlight the integral role of financing in driving vehicle sales. These institutions are offering specialized schemes tailored to prospective buyers, making vehicle ownership more accessible and affordable. This collaborative approach between auto manufacturers and financial service providers is crucial for stimulating market growth and ensuring liquidity in the sector. With the expo scheduled to run until Shrawan 31, organizers are optimistic about reaching a total footfall of approximately 150,000 visitors. Such a high level of engagement not only boosts immediate sales but also serves as a strong indicator of consumer confidence and the overall health of the Nepalese economy. The event provides a crucial platform for industry stakeholders to gauge market trends, introduce innovations, and foster competition, ultimately benefiting consumers with better choices and services. For investors, the robust attendance and active participation signify a resilient and expanding automotive market, potentially opening new avenues for investment in related sectors, including manufacturing, financing, and after-market services. The growing interest in mobility solutions, particularly among the youth, suggests a sustained demand trajectory for years to come.
NEPSE Retreats Marginally by 7.37 Points, Daily Turnover Reaches NPR 4.27 Billion
The Nepal Stock Exchange (NEPSE) experienced a marginal decline today, shedding 7.37 points, or 0.27%, to conclude the trading session at 2,643.83. This modest retreat follows a positive close in the previous session, where the benchmark index had gained 8.81 points, indicating a period of fluctuating market sentiment and consolidation. Throughout the week, the NEPSE index has largely remained confined within a narrow trading band, oscillating between a support level of 2,630 and a resistance of 2,655. Market analysts are closely watching for a decisive breakout from this range, which could signal the next significant move for the index. A sustained push above 2,655 might propel NEPSE towards its next resistance target around 2,670, while a breach of the 2,630 support could see the index testing the near-term floor at 2,600. Investors are advised to monitor these technical levels closely for potential shifts in market momentum. Today's trading commenced with the index opening at 2,649.116. The market saw an intraday high of 2,653.48 before dipping to a low of 2,638.64, ultimately settling at its closing value. Despite the slight dip in the index, trading activity remained robust, with a total turnover amounting to an impressive Rs. 4.27 Arba (NPR 4.27 billion). This substantial volume was generated from the exchange of 9,754,403 shares across 344 companies, facilitated by 43,060 individual transactions. The overall market capitalization stood at Rs. 45.47 Kharba, with the float market capitalization, representing shares available for public trading, recorded at Rs. 15.36 Kharba. In terms of individual stock performance, Agricultural Bond (9 Year) (ADBLB87) emerged as the leader in turnover, recording transactions worth Rs. 70.87 crores, closing at Rs. 1016.0. Highlighting the day's top gainers, Sarvottam Paints Industries Limited (SAPIL) and Mount Everest Power Development Limited (MEPDL) both hit the upper circuit, registering a significant 15.00% gain, reflecting strong investor confidence in these particular scrips. Conversely, Super Khudi Hydropower Limited (SKHL) experienced the steepest decline, falling by 12.83% to close at Rs. 870.00, indicating profit-taking or negative sentiment surrounding the company. Sectoral performance presented a mixed picture. The 'Others' Index recorded the highest gain, appreciating by 0.44%, suggesting positive movement in diversified segments not categorized elsewhere. In contrast, the 'Trading' Index faced the most significant pressure, declining by 2.57%. This divergence underscores the selective nature of the current market, where certain sectors are outperforming others, requiring investors to adopt a nuanced approach to portfolio management. The day's trading activity, while showing a slight index retreat, confirms continued investor engagement and liquidity within the NEPSE market.
Himalayan Distillery Reports 28.14% Profit Growth to Rs. 1.21 Arba; EPS Climbs 6.78% to Rs. 32.71
Himalayan Distillery Limited (HDL) has reported a strong financial performance in the fourth quarter of fiscal year 2082/83, with growth recorded across revenue, profitability, and shareholders’ equity. The company’s revenue from operations increased 12.67% to Rs. 8.11 Arba in Q4 FY 2082/83 from Rs. 7.20 Arba in the corresponding quarter of the previous fiscal year. Himalayan Distillery’s net profit rose 28.14% to Rs. 1.21 Arba from Rs. 94.14 Crore a year earlier. The increase in profitability was reflected in its earnings per share (EPS), which climbed 6.78% to Rs. 32.71 from Rs. 30.63. On the expense front, administration expenses more than doubled, increasing 111.66% to Rs. 19.56 Crore from Rs. 9.24 Crore in the previous fiscal year. The company strengthened its equity base during the review period. Equity share capital increased 20% to Rs. 3.69 Arba from Rs. 3.07 Arba, while reserves and surplus rose 40.19% to Rs. 1.53 Arba from Rs. 1.09 Arba. Property, plant and equipment increased 17.68% to Rs. 1.10 Arba from Rs. 93.62 Crore. Similarly, investments grew 17.99% to Rs. 13.12 Crore from Rs. 11.12 Crore. Trade receivables stood at Rs. 97.12 Crore during the review period. Himalayan Distillery’s net worth per share increased 4.40% to Rs. 141.43 from Rs. 135.46 in the corresponding quarter of the previous fiscal year. At the end of the review quarter, the company’s shares were priced at Rs. 1,140, with a price-to-earnings (P/E) ratio of 34.85 times. Notice: Major Financial Highlights: Particulars (Rs in 000) Himalayan Distillery Limited Q4 2082/83 Q4 2081/82 Difference Equity Share Capital 3,688,082 3,073,402 20.00% Reserves and Surplus 1,527,823 1,089,836 40.19% Property, Plant and Equipment 1,101,733 936,189 17.68% Investment 131,200 111,200 17.99% Trade Receivables 971,182 - 0.00% Revenue from Operation 8,113,793 7,201,151 12.67% Administration Expenses 195,579 92,401 111.66% Net Profit 1,206,338 941,446 28.14% EPS (In Rs.) 32.71 30.63 6.78% Net Worth per Share (In Rs.) 141.43 135.46 4.40% Qtr End P/E Ratio 34.85 - 0.00% Qtr End Price 1140 - 0.00%
Kamana Sewa Bikas Bank Enhances Digital Banking with Seamless Integration of Government's Taxpayer Incentive Scheme
Kamana Sewa Bikas Bank Limited has taken a significant step in promoting digital financial transactions and enhancing customer value by integrating the government's "Taxpayer Incentive Gift Scheme" directly into its mobile banking application. This strategic move not only simplifies participation for its customers but also aligns with the national agenda of fostering a robust digital economy and improving tax compliance. The newly implemented feature allows customers of Kamana Sewa Bikas Bank to automatically qualify for the Inland Revenue Department's (IRD) incentive scheme when making eligible payments via merchant QR codes through the bank's mobile app. This eliminates the need for manual registration or separate uploading of transaction details, a common hurdle that often deters participation in such schemes. The seamless integration ensures that every qualifying digital payment contributes to the customer's eligibility for the lucky draws, making the process effortless and highly user-friendly. Furthermore, customers gain the convenience of tracking their eligible transaction count and reviewing their transaction history directly within the mobile application, providing transparency and control over their participation. The "Taxpayer Incentive Gift Scheme," spearheaded by the Inland Revenue Department under the Ministry of Finance, is a commendable initiative designed to encourage citizens to embrace digital payment methods and demand proper PAN/VAT bills for their purchases. By incentivizing these practices, the government aims to broaden the tax base, reduce informal transactions, and enhance overall tax revenue collection. The scheme offers attractive rewards: a daily lucky draw awards NPR 100,000 (after tax deduction) to one fortunate winner, while a grand bumper prize of NPR 1,000,000 is given out every 15 days. These substantial cash prizes serve as a powerful motivator for consumers to adopt digital payments and ensure tax compliance. For Kamana Sewa Bikas Bank, this integration represents more than just a new feature; it's a strategic enhancement that strengthens its digital banking ecosystem. By facilitating easy access to a government-backed incentive, the bank is likely to see increased adoption and usage of its mobile banking platform for QR-based payments. This not only boosts transaction volumes but also reinforces customer loyalty by providing tangible added value. In a competitive banking landscape, offering such innovative and convenient services can be a significant differentiator, attracting new customers while retaining existing ones. It also positions the bank as a forward-thinking institution committed to supporting national digital initiatives. The broader implications of such integrations are significant for Nepal's financial sector. As more banks follow suit, the collective effort will accelerate the country's transition towards a cashless economy, bringing numerous benefits such as reduced handling of physical cash, improved financial inclusion, and enhanced data for economic planning. The emphasis on collecting PAN/VAT bills also promotes greater accountability among businesses, contributing to a more transparent and formal economic environment. Kamana Sewa Bikas Bank's proactive approach in this regard sets a positive precedent, encouraging both consumers and businesses to participate actively in the digital transformation journey. The bank's encouragement for customers to make digital payments over NPR 100 and diligently collect PAN/VAT bills underscores its commitment to the scheme's objectives and the broader national economic goals. This initiative by Kamana Sewa Bikas Bank is a testament to the evolving landscape of banking in Nepal, where technology and customer-centricity are paramount. It exemplifies how financial institutions can collaborate with government initiatives to create a win-win situation for customers, the banking sector, and the national economy.
Ministry of Finance Reshuffles Key Senior Officials; Dhaniram Sharma to ADB, Kavita Regmi Appointed Spokesperson
The Ministry of Finance, a pivotal institution in Nepal's economic governance, has announced significant administrative reshuffles involving four senior joint secretaries. These strategic reassignments are designed to bolster the ministry's operational efficiency, streamline processes, and inject fresh dynamism into critical divisions responsible for economic policy formulation, international financial relations, and national development planning. Such proactive changes are particularly vital for a developing nation like Nepal, where effective financial management and robust policy implementation are indispensable for achieving sustainable economic growth and fostering an attractive investment climate. A prominent change in leadership involves Joint Secretary Dhaniram Sharma, who currently heads the International Economic Relations Division. Mr. Sharma is set to undertake a prestigious international assignment, having been nominated by the Council of Ministers as the Alternate Executive Director at the Asian Development Bank (ADB) in Manila, Philippines. This appointment not only underscores Mr. Sharma's extensive expertise but also signifies Nepal's commitment to active and influential participation in multilateral financial institutions. He will succeed Joint Secretary Shreekrishna Nepal, who is scheduled for mandatory retirement on August 15 due to age limits. Mr. Sharma's tenure at the ADB is anticipated to amplify Nepal's voice and influence within the institution, potentially facilitating enhanced access to development financing and crucial technical assistance for the nation's priority projects. Following Mr. Sharma's departure, the crucial International Economic Relations Division, which is responsible for coordinating foreign aid, will be led by Joint Secretary Amrit Lamsal. Mr. Lamsal previously served as the head of the Planning, Monitoring, and Evaluation Division. His transition to this role is highly significant, as this division plays a central role in mobilizing and effectively utilizing foreign assistance, which remains a substantial component of Nepal's development budget. His prior experience in planning and monitoring will be invaluable in ensuring that foreign aid initiatives are meticulously aligned with national priorities and yield tangible, impactful results. In another key appointment, Joint Secretary Kavita Regmi Paudyal has been entrusted with dual responsibilities. She will now head the Planning, Monitoring, and Evaluation Division, a critical unit for assessing the progress and impact of government programs and projects across various sectors. Concurrently, Ms. Paudyal has been designated as the Ministry's official spokesperson. Known for her exemplary performance as the chief of the Medium Taxpayer Office and her unique career trajectory, having risen directly from an Accounts Officer to a Joint Secretary, Ms. Paudyal brings a strong reputation for competence, efficiency, and dedication. Her role as spokesperson will be instrumental in ensuring transparency, disseminating accurate information to the public and stakeholders, and fostering public trust in the Ministry's policies and initiatives, which is essential for maintaining investor confidence and public understanding of complex economic decisions. Furthermore, Joint Secretary Devraj Joshi, who recently transferred to the Ministry of Finance from Sudurpaschim Province, has been appointed as the head of the Economic Policy Analysis Division. This division plays a pivotal role in formulating robust economic policies, conducting in-depth research, and providing strategic recommendations to the government on critical fiscal and monetary matters. His experience from a provincial administration could offer valuable insights into regional economic dynamics, thereby enriching the national policy-making process with a broader perspective. While these reassignments aim to significantly bolster the Ministry's functional capacity, it is noteworthy that the Financial Federalism Coordination Division currently remains without a designated head, despite being separated from the Economic Policy Analysis Division. This division is crucial for managing financial relations between the federal, provincial, and local governments, ensuring equitable resource distribution and fiscal discipline across all tiers of governance. The timely appointment of a leader for this division will be important to ensure the smooth and effective functioning of Nepal's federal financial structure. Overall, these administrative adjustments are anticipated to infuse new energy and enhanced efficiency into the Ministry of Finance. The reshuffle is expected to lead to more robust policy analysis, more effective mobilization and utilization of foreign assistance, and more efficient implementation of national development plans. For investors, businesses, and the general public, these changes signal the government's proactive approach to strengthening its economic machinery, which is a positive indicator for improved governance and a more predictable economic environment in Nepal. The strategic placement of experienced officials aims to optimize human resources and enhance the overall effectiveness of the Ministry in steering the nation's economic trajectory towards sustained prosperity.
NEPSE Index Retreats Marginally, But Robust Trading Volume Signals Underlying Activity
The Nepal Stock Exchange (NEPSE) index concluded the week's final trading day with a marginal decline, breaking a three-day streak of modest gains. On Friday, the benchmark NEPSE index shed 7.37 points, or approximately 0.28%, to settle at 2643.83. This slight retreat suggests a period of consolidation or profit-taking after recent upward movements, as investors recalibrate their positions. Despite the dip in the main index, the market witnessed a notable surge in trading volume, indicating sustained investor interest and activity. The total turnover for the day reached an impressive NPR 4.27 billion (approximately USD 32.1 million), a significant increase from the NPR 3.72 billion recorded on the previous trading day. This substantial volume was generated from the exchange of 9.754 million shares across 43,060 transactions involving 344 different stocks. Such an increase in turnover, even on a down day, often suggests that investors are actively rebalancing portfolios, with some taking profits while others see opportunities to enter or increase positions, potentially signaling underlying strength or a shift in market sentiment. A closer look at the sub-indices reveals a mixed performance. While the overall NEPSE index declined, the Sensitive Index, which tracks the performance of 'A' class companies, managed a slight gain of 0.13 points. Conversely, the Float Index and Sensitive Float Index, which represent freely traded shares and 'A' class freely traded shares respectively, both experienced minor declines of 0.40 points and 0.19 points. This divergence indicates that larger, more established companies might be holding their ground better than the broader market or smaller-cap stocks, possibly due to their perceived stability or recent positive corporate developments. Sectoral performance on Friday was predominantly negative, with nine out of the thirteen sub-groups closing in the red. The Trading sub-group was the hardest hit, registering the largest decline of 2.57%. This could be attributed to profit booking after recent rallies or specific concerns within the sector. On the brighter side, four sub-groups managed to post gains: Life Insurance, Microfinance, Mutual Fund, and Others. These sectors saw modest increases, suggesting continued investor confidence or specific positive catalysts driving demand in these areas. Among individual stocks, Mount Everest Power Development and Sarbottam Paints were notable performers, both hitting the positive circuit level, indicating strong buying interest and potentially positive company-specific news or sectorial tailwinds. First Microfinance Laghubitta Bittiya Sanstha and Vikas Hydropower Company also saw significant appreciation, with their share prices climbing by approximately 7%. On the losing end, Super Khudi Hydro Power experienced the steepest decline, with its share price plummeting by 12.83%, which could be due to profit-taking or negative news specific to the company or the broader hydropower sector. In terms of turnover, the Agricultural Bond (9 years) dominated the market, recording a substantial turnover of NPR 708.79 million. This highlights the continued appeal of fixed-income instruments, possibly for institutional investors seeking stable returns amidst market volatility. Among equities, Khani Khola Hydropower Company and Liberty Energy Company also saw robust trading activity, with turnovers of approximately NPR 180 million and NPR 165 million respectively, underscoring sustained investor focus on the hydropower sector, which often attracts significant capital in the Nepalese market. Adding to the day's corporate news, Kumari Bank Limited released its unaudited financial statement for the fourth quarter of the last fiscal year. The bank reported a net profit of approximately NPR 7.5 billion for the period. Such earnings reports from major financial institutions are closely watched by investors as they provide insights into the health of the banking sector and the broader economy, often influencing investor sentiment towards financial stocks. The day's trading activity paints a picture of a market in flux. While the headline index saw a minor correction, the robust trading volume suggests that underlying market dynamics remain active, with investors actively participating in both buying and selling. This mixed signal indicates a cautious yet engaged market as participants navigate various economic indicators and corporate earnings reports, seeking opportunities amidst the prevailing conditions.
Nepal Must Proactively Develop Clear EV Battery Recycling and Ethanol Blending Policies, Urges Indian Expert
Nepal is at a pivotal juncture in its journey towards sustainable mobility, with a rapid surge in electric vehicle (EV) adoption. This promising shift, however, brings with it a critical challenge: the management of end-of-life EV batteries. Dr. Balraj Bhanot, Chairman of India's Centre Motor Vehicle Rules Technical Standing Summit, has strongly advocated for Nepal to establish a clear and comprehensive battery management policy without delay. His insights were shared during a recent dialogue program on 'Battery Recycling and Ethanol Blending in Fuel,' organized by the Nepal Automobiles Importers and Manufacturers Association (NADA). Dr. Bhanot highlighted that while lithium-ion batteries typically have a lifespan of 8 to 10 years, Nepal is likely to face a significant volume of battery replacements in the next four to five years. This window presents a crucial opportunity for proactive policy formulation and infrastructure development. He emphasized the need for robust legal frameworks to facilitate the collection and reuse of these spent batteries, preventing them from becoming an environmental hazard and instead transforming them into a valuable resource. A key recommendation put forth by Dr. Bhanot is the implementation of an 'Extended Producer Responsibility (EPR)' policy. Under this framework, the legal onus for collecting old batteries would fall upon vehicle and battery importers, sellers, and dealers. Furthermore, he suggested a mandatory system where customers are required to return their old batteries when purchasing new ones. This structured approach would ensure a consistent supply of end-of-life batteries for recycling. Regarding the actual recycling process, Dr. Bhanot advised that collected batteries must be channeled exclusively to registered recycling plants. Recognizing that Nepal might not initially have sufficient volumes to justify establishing its own large-scale recycling facilities, he proposed exploring collaborative ventures with existing plants in neighboring countries like India or China. Such partnerships would enable Nepal to export its collected batteries for processing, ensuring responsible disposal and resource recovery. This strategic foresight is crucial for building a circular economy around EVs, minimizing waste, and maximizing the utility of valuable materials like lithium, cobalt, and nickel. Beyond battery management, the dialogue also delved into the potential and pitfalls of ethanol blending in fuel, another critical aspect of sustainable energy policy. Dr. Bhanot shared India's extensive experience, which began with a modest 5% ethanol blend in 2006, gradually increasing to 10% by 2010, and now reaching 20% (E20). While ethanol blending offers environmental benefits by reducing reliance on fossil fuels and lowering emissions, he cautioned Nepal against a rapid escalation in blending percentages. India's journey revealed significant challenges, particularly for older vehicles and existing fuel supply systems. Rapid increases in ethanol content can lead to severe issues such as engine damage, fuel leakage, difficulty in starting vehicles, and a noticeable reduction in fuel efficiency, often by 5-6%. This is primarily because older vehicle engines and their rubber and elastic components are not designed to withstand high ethanol concentrations. Another critical technical concern raised was 'phase separation' in underground petrol pump tanks. Ethanol's hygroscopic nature means it absorbs water from the air and environment. If water mixes with the fuel in these tanks, the ethanol and petrol can separate, with the heavier ethanol-water mixture settling at the bottom. This poses a risk of vehicles being pumped with a substandard mixture instead of pure fuel, leading to performance issues and potential damage. Dr. Bhanot's advice for Nepal is to learn from these Indian experiences. Any policy decision regarding ethanol blending or a broader transition to biofuels must be carefully considered, taking into account technical infrastructure readiness and the compatibility of the existing vehicle fleet. A phased approach, coupled with public awareness campaigns and necessary upgrades to fuel distribution systems and vehicle specifications, would be essential for a smooth and successful transition. In conclusion, Dr. Bhanot's recommendations underscore the importance of proactive policy-making in Nepal's pursuit of sustainable development. By addressing EV battery recycling and ethanol blending with foresight and strategic planning, Nepal can mitigate potential environmental and economic challenges, ensuring a greener and more resilient future for its transportation and energy sectors. This comprehensive approach will not only safeguard the environment but also create new economic opportunities in recycling and sustainable energy.
Machhapuchhre Bank Reports 12.24% Rise in Net Profit to Rs. 2.11 Arba in Q4 FY 2082/83; Deposits Grow 19.72%
Machhapuchhre Bank Limited (MBL) has reported a 12.24% increase in net profit in the fourth quarter of fiscal year 2082/83, earning Rs. 2.11 Arba compared to Rs. 1.88 Arba in the corresponding quarter of the previous fiscal year. The bank’s paid-up capital increased significantly by 29.81% to Rs. 15.09 Arba (including preference shares) from Rs. 11.62 Arba. The increase includes the issuance of Rs. 3 Arba in irredeemable preference shares. Retained earnings rose 4.87% to Rs. 98.20 Crore, while reserves increased 17.69% to Rs. 7.44 Arba. Machhapuchhre Bank’s deposits grew 19.72% to Rs. 2.20 Kharba from Rs. 1.84 Kharba a year earlier. Loans and advances also increased 15.95% to Rs. 1.64 Kharba from Rs. 1.41 Kharba. Net interest income rose 5.53% to Rs. 6.07 Arba from Rs. 5.76 Arba. Personnel expenses increased 10.27% to Rs. 2.72 Arba, while impairment charges surged 94.35% to Rs. 1.08 Arba from Rs. 55.67 Crore. Despite the sharp increase in impairment charges, the bank’s operating profit edged up 0.54% to Rs. 3.16 Arba from Rs. 3.15 Arba in the previous fiscal year. Distributable profit after profit/loss appropriation and regulatory adjustments increased 4.87% to Rs. 98.19 crores from Rs. 93.64 Crore. The bank’s capital adequacy ratio improved to 10.04% from 9.27%. Meanwhile, the NPL ratio remained broadly stable at 3.98%, compared to 3.96% in the previous fiscal year. Machhapuchhre Bank’s cost of funds declined significantly by 22.70% to 3.27% from 4.23%. However, earnings per share (EPS) declined 4.72% to Rs. 15.44 from Rs. 16.21. Net worth per share increased 4.44% to Rs. 169.91 from Rs. 162.70. At the end of the review quarter, Machhapuchhre Bank’s share price stood at Rs. 248, with its price-to-earnings (P/E) ratio recorded at 16.06 times. Report: Major Financial Highlights: Particulars (In Rs '000) Machhapuchhre Bank Limited Q4 2082/83 Q4 2081/82 Difference Paid Up Capital 15,086,211.56 11,621,357.27 29.81% Ordinary Shares 12,086,211.56 11,621,357.27 4.00% Preference Share (Irredeemable) 3,000,000.00 0.00 0.00% Share Premium 30,881.77 30,881.77 0.00% Retained Earnings 981,961.03 936,365.85 4.87% Reserves 7,436,819.85 6,318,762.34 17.69% Deposit 220,498,454.80 184,176,049.90 19.72% Loans & Advances 163,991,227.94 141,436,048.91 15.95% Net Interest Income 6,074,927.54 5,756,716.09 5.53% Personnel Expenses 2,718,934.73 2,465,781.64 10.27% Impairment Charges 1,081,850.30 556,657.05 94.35% Operating Profit 3,164,729.20 3,147,641.75 0.54% Net Profit 2,114,120.76 1,883,643.49 12.24% Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 981,961.03 936,365.85 4.87% Capital Adequacy (%) 10.04 9.27 8.31% NPL (%) 3.98 3.96 0.51% Cost of Fund (%) 3.27 4.23 -22.70% EPS (In Rs.) 15.44 16.21 -4.72% Net Worth per Share (In Rs.) 169.91 162.70 4.44% Qtr end PE Ratio (times) 16.06 - - Qtr End Market Price 248 - -
SY Panel Nepal Reports Modest Profit Growth Amidst Significant Investment Surge and EPS Dilution in Q4 FY 2082/83
SY Panel Nepal Limited, a prominent player in its sector, has unveiled its financial performance for the fourth quarter of the fiscal year 2082/83, reporting a mixed bag of results that warrant close attention from investors. While the company managed to post a modest increase in net profit, several underlying metrics suggest a period of significant strategic shifts and operational adjustments. The company's net profit saw a slight uptick of 1.08%, reaching Rs. 6.75 Crore compared to Rs. 6.68 Crore in the same quarter of the previous fiscal year. This marginal growth, however, stands in stark contrast to the substantial 39.35% decline in Earnings Per Share (EPS), which fell from Rs. 8.51 to Rs. 5.16. This significant drop in EPS is primarily attributable to a substantial 66.67% increase in ordinary share capital, which expanded to Rs. 130.81 Crore from Rs. 78.49 Crore. Such an increase in share capital, often a result of rights issues, bonus shares, or fresh equity injections, dilutes earnings per share even if the absolute net profit sees a slight rise. For investors, this dilution is a critical factor in assessing the per-share profitability and future dividend potential. On the revenue front, SY Panel Nepal demonstrated a positive trend, with revenue from operations growing by 7.50% to Rs. 81.28 Crore from Rs. 75.61 Crore a year earlier. This indicates healthy demand for the company's products and services, suggesting a robust core business activity. Complementing this, other income witnessed an impressive surge of 159.90%, climbing to Rs. 19.40 Lakh from Rs. 7.47 Lakh. This substantial increase in non-operating income could stem from various sources, such as interest income from increased investments, gains from asset sales, or other ancillary activities, providing an additional boost to the company's overall income statement. A standout feature of this quarter's report is the phenomenal 917.65% increase in investments, soaring to Rs. 43.25 Crore from a mere Rs. 4.25 Crore. This aggressive expansion in the investment portfolio signals a strategic move by the company, potentially aimed at diversifying its asset base, exploring new growth avenues, or optimizing its capital structure. While such substantial investments can be a precursor to future growth and enhanced profitability, they also introduce a degree of risk that investors will need to monitor closely. The nature and performance of these new investments will be crucial in determining their long-term impact on the company's financial health. Conversely, the company's property, plant, and equipment (PPE) saw a slight decline of 3.40%, settling at Rs. 56.28 Crore from Rs. 58.26 Crore. This could be due to depreciation, asset disposals, or a shift in capital expenditure priorities. Simultaneously, trade receivables experienced a healthy decline of 32.27%, falling to Rs. 16.10 Crore from Rs. 23.77 Crore. This reduction suggests improved efficiency in collecting outstanding payments from customers, which positively impacts the company's working capital management and cash flow. However, operational costs also saw an upward trend, with administration expenses increasing by 23.33% to Rs. 5.35 Crore from Rs. 4.34 Crore. While some increase in expenses is expected with revenue growth, a disproportionate rise could signal inefficiencies or increased overheads that need to be managed. From a valuation perspective, SY Panel Nepal's net worth per share declined by 2.85% to Rs. 111.78 from Rs. 115.07. At the close of the review quarter, the company's shares were trading at Rs. 1,255, commanding a high price-to-earnings (P/E) ratio of 243.16 times. This elevated P/E ratio suggests that the market has high expectations for the company's future earnings growth, or it could reflect a premium placed on its market position or specific strategic initiatives. Investors should carefully evaluate whether the current valuation aligns with the company's fundamental performance and future prospects, especially in light of the diluted EPS. In summary, SY Panel Nepal Limited's Q4 FY 2082/83 report presents a complex picture. While revenue growth and a significant surge in investments highlight potential for future expansion, the substantial dilution of EPS and rising administrative costs warrant careful consideration. The company appears to be in a phase of strategic reorientation, with aggressive investment strategies potentially laying the groundwork for long-term growth, but investors will need to closely monitor how these investments translate into sustainable profitability and shareholder value in the coming quarters.
Palpa Cement’s Net Profit Plunges 59% to Rs. 4 Crore in Q4 FY 2082/83 Despite 15.90% Revenue Growth
Palpa Cement Industries Limited has reported a 59% decline in net profit in the fourth quarter of fiscal year 2082/83, earning Rs. 4.00 Crore compared to Rs. 9.75 Crore in the corresponding quarter of the previous fiscal year. Despite the decline in profitability, the company’s revenue from operations increased 15.90% to Rs. 4.77 Arba from Rs. 4.11 Arba a year earlier. Other income also more than doubled, rising 100.27% to Rs. 1.81 Crore from Rs. 90.54 Lakh. Palpa Cement Industries’ equity share capital increased by 25% to Rs. 3.75 Arba from Rs. 3.00 Arba. Other equity also increased marginally by 1.96% to Rs. 1.09 Arba. The company’s administration expenses remained largely stable, declining marginally by 0.15% to Rs. 11.42 Crore from Rs. 11.44 Crore. Investment increased 4.23% to Rs. 49.25 Crore from Rs. 47.25 Crore. Meanwhile, property, plant and equipment declined 1.97% to Rs. 75.92 Crore from Rs. 77.44 Crore. Trade receivables also declined 2.71% to Rs. 49.90 Crore from Rs. 51.29 Crore in the corresponding quarter of the previous fiscal year. The decline in net profit was reflected in the company’s earnings per share (EPS), which fell 67.20% to Rs. 1.07 from Rs. 3.25. Palpa Cement’s net worth per share stood at Rs. 129.15, down 4.85% from Rs. 135.74 a year earlier. At the end of the review quarter, the company’s shares were priced at Rs. 595, with a price-to-earnings (P/E) ratio of 557.91 times. Report: Major Financial Highlights: Particulars (Rs in 000) Palpa Cements Industries Limited Q4 2082/83 Q4 2081/82 Difference Equity Share Capital 3,750,000 3,000,000 25.00% Other Equity 1,093,257 1,072,196 1.96% Property, Plant and Equipment 7,591,713 7,744,471 -1.97% Investment 492,500 472,500 4.23% Trade Receivables 498,996 512,917 -2.71% Revenue from Operation 4,765,940 4,112,010 15.90% Other Income 18,132 9,054 100.27% Administration Expenses 114,243 114,418 -0.15% Net Profit 39,993 97,546 -59.00% EPS (In Rs.) 1.07 3.25 -67.20% Net Worth per Share (In Rs.) 129.15 135.74 -4.85% Qtr End P/E Ratio 557.91 - 0.00% Qtr End Price 595 - 0.00%
Dhanusha Distillery to Offer Shares to Public, Appoints Muktinath Capital
Dhanusha Distillery Limited has decided to offer 20 percent of its total issued share capital to the general public. To carry out the share issuance process, the company has appointed Muktinath Capital Limited as its issue manager. An agreement was signed at the office of Muktinath Capital by Dhanusha Distillery Chairman Kishan Kumar Dhanawat and Muktinath Capital Chief Executive Officer Kabindra Dhoj Joshi. Established in 1998, Dhanusha Distillery operates with an annual production capacity of 9.18 million liters. The company currently produces and distributes popular alcoholic beverage brands, including Mustang Gold Whisky and Mustang Vodka. Looking ahead, the company plans to introduce new products, diversify its portfolio while maintaining product quality, and expand its reach into both domestic and international markets.
Arun Kabeli Power Sees Over 50% Net Profit Decline in Q4 Amidst Rising Expenses
Arun Kabeli Power Limited (AKPL) has released its unaudited financial statements for the fourth quarter of the last fiscal year, revealing a significant downturn in its profitability. The hydropower company reported a substantial 52.87% decrease in net profit compared to the same period in the previous fiscal year, a development that will undoubtedly draw the attention of investors and market analysts. For the fiscal year ending Ashar (mid-July), AKPL recorded a net profit of NPR 79.6 million. This figure stands in stark contrast to the NPR 169 million net profit achieved in the corresponding period of the prior fiscal year, highlighting a challenging operational environment for the company. The primary drivers behind this notable decline have been identified as a marginal reduction in electricity sales revenue coupled with a substantial increase in overall operational and financial expenses. A deeper dive into the financial specifics reveals the extent of these challenges. During the review period, AKPL experienced a 3% dip in its electricity sales revenue, which directly impacted its top-line performance. Consequently, the company's gross profit also saw a decrease of 2.39%. However, the most significant factor contributing to the profit erosion appears to be the surge in expenses. Financial expenses alone escalated by 12.52%, indicating potentially higher borrowing costs or increased debt servicing obligations. More broadly, the company's total expenses witnessed an alarming increase of 49.86%. This sharp rise in expenditure, far outpacing any revenue growth or even slight decline, has been the critical determinant in the company's reduced profitability. The impact of these financial results extends beyond just the net profit figure, significantly affecting key per-share metrics that investors closely monitor. Arun Kabeli Power's Earnings Per Share (EPS) plummeted by NPR 2.29, settling at NPR 2.05 for the period. This substantial reduction in EPS reflects the diminished earnings available to shareholders and could influence investor sentiment regarding the company's future earning potential. Despite the profit decline, the company's net worth per share stood at NPR 101.77 by the end of the fourth quarter, suggesting a relatively stable asset base. However, the Price-to-Earnings (P/E) ratio, a valuation metric, was reported at 121.75 times, which might be considered high given the recent profit contraction, potentially indicating that the stock is trading at a premium relative to its current earnings. As of the latest reporting, Arun Kabeli Power Limited maintains a paid-up capital of NPR 3.89 billion, supported by other equity amounting to NPR 68.9 million. While the company's capital structure remains robust, the recent financial performance underscores the pressures faced by hydropower companies, particularly concerning operational efficiencies and market dynamics affecting electricity sales and input costs. Investors will be keenly observing AKPL's strategies to mitigate rising expenses and boost revenue in the upcoming fiscal periods to restore profitability and enhance shareholder value. The company's ability to manage its cost structure effectively and optimize its power generation and sales will be crucial for its sustained performance in the competitive energy sector.
Nepal Government Forms High-Level Committee to Address Gen-Z Movement Victims' Demands
In a significant move towards fostering social harmony and addressing past grievances, the Government of Nepal has officially initiated the work of a special coordination committee. This committee has been specifically constituted to address the demands of the families of those martyred and injured during the 'Gen-Z Movement,' which took place on Bhadra 23 and 24, 2082 BS. The Prime Minister's Office has confirmed that the committee has already convened its inaugural meeting, signaling a proactive approach to resolving these sensitive issues. The newly formed body, officially named the 'Gen-Z Agreement and Integrated Package Implementation Coordination and Facilitation Committee,' is spearheaded by Joint Secretary Hemraj Aryal of the Prime Minister and Council of Ministers' Office. Its primary mandate is to ensure the effective implementation and coordination of agreements reached between the government and the representatives of the Gen-Z movement on Mangsir 24, 2082 BS. Furthermore, the committee is tasked with operationalizing the 'Integrated Package for Coordinated Rehabilitation, Livelihood, and Social Protection for Gen-Z Movement Martyr Families and Injured,' which received cabinet approval on Ashar 18, 2083 BS. The committee's responsibilities are comprehensive, encompassing the review of implementation progress for this integrated package and fostering robust inter-ministerial coordination. Crucially, it will serve as a direct 'contact point' for the affected families, streamlining communication and support. The package itself outlines provisions for critical areas such as education, healthcare, and employment for the affected families, and the committee will facilitate their implementation across various government agencies. Recognizing the potential for practical challenges or policy complexities during the implementation phase, the committee is empowered to identify necessary reforms and propose concrete recommendations to relevant bodies. This proactive problem-solving approach is vital for ensuring the package's success and the timely delivery of support. To enhance transparency and leverage expertise, the committee is authorized to invite representatives from governmental and non-governmental organizations, as well as subject matter experts, for discussions and meetings as needed. The composition of the committee underscores its high-level nature, including joint secretary-level representatives from seven key ministries, such as the Ministry of Home Affairs and the Ministry of Finance. Importantly, it also integrates representatives from the 'Gen-Z Martyr Family Welfare Society' and 'Injured Gen-Z Nepal,' ensuring that the voices and perspectives of the affected communities are directly heard and considered. Basudev Khanal, Head of the Provincial Coordination, National Security, and Diplomatic Affairs Branch (Under Secretary) at the Prime Minister's Office, has been appointed as the Member Secretary. This structured and inclusive approach is expected to ensure that the committee's work is focused on the broader welfare of the martyr families and the injured, contributing to social stability and a more predictable policy environment, which are indirect but significant factors for investor confidence in the long run.
Muktinath Bikas Bank Partners with Lemon Tree Premier and Tesla Diagnostic to Offer Customer Discounts
Muktinath Bikas Bank Limited has signed business agreements with Lemon Tree Premier Budhanilkantha Hotel and Tesla Diagnostic to provide exclusive discounts to its customers on hospitality and healthcare services. Under the agreement, bank customers can receive up to a 15% discount on accommodation and food, as well as up to a 20% discount on spa services at Lemon Tree Premier located in Budhanilkantha. Additionally, customers visiting Tesla Diagnostic in Baluwatar will receive discounts ranging from 5% to 10% on various health services, including pathology tests, MRI scans, X-rays, Dental OPG, and medicines. To claim these benefits, customers must present a valid Muktinath Bikas Bank debit card or privilege card at the time of service, or make their payment through the bank's mobile banking platform. Alongside the discount scheme, Chief Information Officer Til Bahadur Gurung shared that the bank remains committed to providing accessible and competitive financial services tailored to market demand. As part of this commitment, the bank has also launched a special auto loan offer priced directly at its base rate with zero additional markup.
Agri Care Nepal Gears Up for IPO, Appoints Nepal Life Capital as Advisor
Agri Care Nepal Limited, a prominent player in Nepal's agricultural sector, has officially initiated its preparations for an Initial Public Offering (IPO) to the general public. This strategic move aims to bolster the company's capital structure, facilitate comprehensive financial and business assessments, and systematically streamline its journey towards becoming a publicly listed entity. To navigate this crucial phase, Agri Care Nepal has appointed Nepal Life Capital Limited as its institutional consultant, signaling a significant step towards its capital market debut. The formal agreement for Corporate Advisory Services was inked during a ceremony held at Agri Care Nepal's corporate office in Bharatpur-4, Chitwan. The signing ceremony saw Mr. Rabin Adhikari, Chairman of Agri Care Nepal, and Mr. Manish Ghimire, Chief Executive Officer of Nepal Life Capital, affixing their signatures, solidifying the partnership. This collaboration is poised to provide Agri Care Nepal with expert guidance throughout the intricate IPO process. Under the terms of the agreement, Nepal Life Capital will play a pivotal role in various aspects of Agri Care Nepal's capital market entry. This includes assisting in the crucial determination of the potential IPO size, advising on necessary improvements to the company's capital structure, conducting thorough studies of its financial and legal standing, and ensuring seamless coordination with regulatory bodies for compliance. Such comprehensive advisory services are indispensable for a successful public offering, ensuring transparency, adherence to market regulations, and optimal positioning for potential investors. Established in 2004, Agri Care Nepal has steadily grown its footprint in the agricultural landscape. The company initially commenced its operations by focusing on plant nutrition, trace elements, and the provision of high-quality agricultural inputs. Demonstrating a commitment to innovation and sustainable practices, Agri Care Nepal further expanded its offerings in 2009 with the launch of a dedicated bio-technology unit. This expansion marked its foray into the production of organic pesticides and beneficial microorganism-based products, aligning with global trends towards eco-friendly farming solutions. In recent years, Agri Care Nepal has diversified its service portfolio to cater to a broader spectrum of farmer needs. Its current range of services encompasses crop protection, advanced plant nutrition solutions, various fertilizers, soil conditioners, and bio-inputs. These products and services are designed to empower farmers, enhance agricultural productivity, and improve the overall quality of crops across Nepal. The company's mission extends beyond mere product supply; it actively champions sustainable agricultural practices, emphasizing long-term soil health and environmental stewardship. Furthermore, Agri Care Nepal is deeply committed to farmer empowerment through knowledge dissemination and support. The company regularly conducts various training programs and operates a dedicated farmer call center, providing essential information and assistance to agriculturalists. This proactive approach underscores its dedication to fostering a resilient and prosperous agricultural community in Nepal. The decision to go public through an IPO is a strategic move that will not only provide Agri Care Nepal with access to significant capital for expansion and innovation but also enhance its corporate governance and public visibility. For investors, an IPO from a company like Agri Care Nepal presents a unique opportunity to invest in Nepal's vital agricultural sector, which is a cornerstone of the national economy. With Nepal Life Capital's expertise, Agri Care Nepal is well-positioned to navigate the complexities of the capital market and achieve a successful public offering, paving the way for future growth and value creation for its stakeholders. This development marks an exciting chapter for both Agri Care Nepal and the broader Nepali capital market, offering new avenues for investment in a sector critical for national development.
Api Power Company Reports Stellar Q4 Performance with Over 130% Net Profit Surge
Api Power Company Limited (API), a prominent player in Nepal's burgeoning hydropower sector, has announced an exceptionally strong financial performance for the fourth quarter of the last fiscal year. The unaudited financial statements reveal a remarkable surge in net profit, underscoring the company's operational efficiency and strategic financial management. This impressive growth is poised to capture the attention of investors keenly observing the energy landscape in Nepal. For the fiscal year ending Ashar (mid-July), Api Power recorded a net profit of NPR 96.06 crore. This represents an astounding 130.06% increase compared to the NPR 41.75 crore reported in the same period of the previous fiscal year. Such a significant leap in profitability highlights a pivotal shift in the company's financial trajectory, driven by a combination of revenue growth and stringent cost control measures. A deeper dive into the financial report indicates that while electricity sales revenue experienced a modest increase of 7.06%, the primary catalyst for the substantial profit growth was a significant reduction in financial expenses. The company successfully curtailed its financial costs by an impressive 24.13% during the review period. This demonstrates effective treasury management and potentially favorable refinancing terms or reduced debt obligations, which directly contributed to the enhanced bottom line. Furthermore, the gross profit also saw a healthy rise of 12.19%, indicating improved operational margins. The robust profit growth translated directly into a substantial increase in the company's Earnings Per Share (EPS). Api Power's EPS climbed by NPR 8.19, reaching NPR 15.06 by the end of the fourth quarter. This upward trend in EPS is a positive indicator for shareholders, reflecting improved earnings power per share and potentially signaling higher dividend prospects in the future. Investors often view a rising EPS as a strong sign of a company's financial health and growth potential. As of the end of the fourth quarter, the company's net worth per share stood at NPR 119.51, providing a solid book value for its equity. The Price-to-Earnings (P/E) ratio was reported at 21.30 times. While this figure should be evaluated in the context of the broader hydropower sector and market averages, it offers investors a metric to assess the market's valuation of Api Power's earnings. A P/E ratio of 21.30 suggests that investors are willing to pay a premium for the company's earnings, likely due to its strong growth prospects and the inherent stability of the energy sector. Api Power Company Limited maintains a robust financial structure with a paid-up capital of NPR 6.37 billion. Complementing this, the company has accumulated retained earnings of NPR 1.2445 billion. These retained earnings are crucial for funding future expansion projects, investing in new technologies, and strengthening the company's overall financial resilience without necessarily diluting existing shareholder value through new equity issuance. The hydropower sector in Nepal is undergoing significant expansion, with increasing demand for electricity and government initiatives supporting renewable energy projects. Api Power, with its strengthened financial position, is well-placed to capitalize on these opportunities, potentially venturing into new projects or expanding the capacity of existing ones. The impressive Q4 results from Api Power Company Limited paint a promising picture for its stakeholders. The combination of increased revenue, disciplined cost management, and a significant boost in profitability and EPS positions API as a compelling investment opportunity within Nepal's dynamic energy market. As Nepal continues to harness its vast hydropower potential, companies like Api Power are at the forefront, contributing to national development while delivering substantial value to their investors.
अन्तर्राष्ट्रिय कृत्रिम बुद्धिमत्ता (AI) ओलम्पियाडमा नेपाललाई ऐतिहासिक सफलता, सिद्धान्त चतुर्वेदीलाई कांस्य पदक, तीन जनालाई विशेष प्रशंसा
कजाखस्तानको अस्तानामा सम्पन्न तेस्रो अन्तर्राष्ट्रिय कृत्रिम बुद्धिमत्ता ओलम्पियाड (IOAI) मा नेपाली टोलीले ऐतिहासिक सफलता हासिल गर्दै नेपालका लागि पहिलो पदक जितेको छ।सन् २०२६ अगस्ट २ देखि ८ सम्म सञ्चालन भएको उक्त प्रतियोगितामा काठमाडौँको माइतीघरस्थित सेन्ट जेभियर्स कलेजका विद्यार्थी सिद्धान्त चतुर्वेदीले कांस्य पदक जित्दै नयाँ इतिहास रचेका हुन्। प्रतियोगितामा नेपाली टोलीका अन्य तीन सदस्यहरू प्रसिद्ध मैनाली, पीताम्बर लामिछाने र आयुष यादवले 'विशेष प्रशंसा' (Honourable Mention) प्राप्त गरेका छन्। नेपालका चारै जना प्रतिस्पर्धी सम्मानित भई स्वदेश फर्किएका छन्। १०८ मुलुकका ४७१ प्रतिस्पर्धीबीच प्रतिस्पर्धा कजाखस्तानको कम्पिटिटिभ प्रोग्रामिङ फेडेरेसनले आयोजना गरेको यस वर्षको ओलम्पियाड हालसम्मकै ठूलो संस्करण हो, जसमा १०८ मुलुकका ४७१ जना प्रतिस्पर्धीहरू सहभागी थिए। प्रतियोगिता अन्तर्गत अगस्ट ४ र ६ गते सञ्चालित ६-६ घण्टाका दुई चरणमा प्रतिस्पर्धीहरूले पाइथन (Python) र जुपिटर नोटबुक (Jupyter Notebook) प्रयोग गर्दै अन्तर्राष्ट्रिय वैज्ञानिक समितिले तयार पारेका मेसिन लर्निङका जटिल समस्याहरू समाधान गरेका थिए। दुवै दिनको संयुक्त अङ्कका आधारमा पदक निर्धारण गरिएको थियो। यसअघि सन् २०२४ मा बुल्गेरियाको बुर्गास र सन् २०२५ मा चीनको बेइजिङमा भएका दुई संस्करणमा पनि नेपालले सहभागिता जनाएको भए पनि कुनै पदक हात पार्न सकेको थिएन। कुमारी बैंक लिमिटेडले गत आर्थिक वर्षको चौथो त्रैमाससम्मको अपरिष्कृत वित्तीय विवरण प्रकाशित गरेको छ। विवरण अनुसार बैंकले सो अवधिसम्ममा करिब साढे ७ अर्ब रुपैयाँ खुद नाफा कमाएको छ।
Khaga Raj Bhatta Appointed Chief Minister of Sudurpaschim Province Amidst Political Realignment
In a significant political development for Nepal's Sudurpaschim Province, Khaga Raj Bhatta, the parliamentary party leader of the Nepali Communist Party (NCP), has been officially appointed as the new Chief Minister. This appointment, made by Sudurpaschim Province Chief Najir Miya, adheres to the provisions outlined in Article 168 (2) of the Constitution, signifying a formal transition of leadership within the provincial government. Mr. Bhatta's ascension to the top provincial post marks him as the fifth Chief Minister of Sudurpaschim Province, a fact that underscores the dynamic and often fluid nature of coalition politics at the provincial level in Nepal. His appointment follows the resignation of the previous Chief Minister, Kamal Bahadur Shah, which was necessitated by a shift in the power-sharing equations among the political parties within the provincial assembly. Such changes, while reflecting democratic processes, are closely watched by investors and businesses for their potential implications on policy continuity and administrative stability. For an investor audience, the stability of provincial governance is a critical factor. Sudurpaschim Province, with its diverse economic potential spanning agriculture, tourism, and hydropower, relies heavily on consistent and effective leadership to foster an environment conducive to investment and development. Frequent changes in leadership, while sometimes unavoidable, can introduce an element of uncertainty regarding the long-term implementation of development projects and the predictability of regulatory frameworks, which are key considerations for both domestic and international capital. The current composition of the Sudurpaschim Provincial Assembly, which comprises 52 members, includes 22 from the Nepali Communist Party, 11 from the CPN (UML), 18 from the Nepali Congress, and one from the Rastriya Prajatantra Party. This diverse political landscape highlights the necessity for the new Chief Minister to engage in robust consensus-building and adept coalition management to ensure a stable working majority. The ability to navigate these political complexities will be crucial for passing provincial budgets, enacting essential legislation, and effectively implementing development agendas without undue political hurdles. Mr. Bhatta's administration will be under scrutiny for its approach to economic development, resource management, and the facilitation of public-private partnerships. Investors typically seek assurances of political stability, policy predictability, and strong governance when making investment decisions. Therefore, the effectiveness of CM Bhatta's leadership in providing a stable and growth-oriented environment will directly influence the ease of doing business and the overall attractiveness of Sudurpaschim Province as an investment destination. The financial community will be keen to observe how this new political chapter translates into tangible economic policies and a more predictable regulatory landscape, ultimately impacting the region's growth trajectory.
CEDIB Holdings Reports Modest Profit Growth in Q4 FY 2082/83, EPS Rises
CEDIB Holdings Limited (CHDC) has announced its unaudited financial results for the fourth quarter of the fiscal year 2082/83, revealing a commendable increase in its net profit. The company's financial performance for the period ending Ashar (mid-July) demonstrates a positive trajectory, driven by strategic operational efficiencies and prudent expense management. For the fiscal year concluding mid-July, CHDC reported a net profit of NPR 632.1 million. This represents a robust increase of 10.30% compared to the NPR 573 million recorded in the corresponding period of the previous fiscal year. This growth, while modest, signals a stable and improving financial health for the holding company, which is a crucial indicator for investors assessing long-term value. The consistent upward trend in profitability underscores the company's ability to navigate market conditions effectively and capitalize on its investment portfolio, reflecting sound management decisions and a resilient business model. A deeper dive into the financial statements reveals the underlying factors contributing to this enhanced profitability. The company successfully boosted its operating income, which saw a healthy increase of 6.94% during the review period. This growth in core operational revenue is a testament to CHDC's effective business strategies and its capacity to generate income from its primary activities. Simultaneously, the company demonstrated exceptional discipline in managing its expenditures. Administrative expenses witnessed a significant reduction of 41.70%, showcasing a strong commitment to cost control and operational streamlining. Even more remarkably, financial expenses were reduced by a full 100%, indicating either a complete repayment of financial obligations or a strategic restructuring of its debt profile, which significantly bolsters the bottom line. These combined efforts in revenue enhancement and expense reduction have been pivotal in driving the net profit upwards, providing a strong foundation for future financial stability. The positive financial performance also translated into improved shareholder returns, with the Earnings Per Share (EPS) experiencing a notable increase. CHDC's EPS rose by NPR 5.71, reaching NPR 61.12 by the end of Ashar. This upward movement in EPS is a direct reflection of the company's increased profitability relative to its outstanding shares, offering a more attractive valuation for potential and existing investors. A higher EPS often indicates a company's efficiency in generating profit for its shareholders, making it a key metric for investment decisions and reflecting the company's ability to create value. Furthermore, the company's balance sheet remains robust. As of the end of Ashar, the Net Worth Per Share stood at NPR 268.77, indicating a strong asset base backing each share. The Price-to-Earnings (P/E) ratio was reported at 33.71 times. While this ratio can vary across industries and market conditions, it provides investors with a perspective on how much they are willing to pay for each rupee of earnings. A P/E ratio of 33.71 suggests that the market has a relatively optimistic outlook on CHDC's future earnings potential, or that it operates in a sector typically commanding higher valuations, reflecting investor confidence in its growth prospects. In terms of capital structure, CEDIB Holdings Limited maintains a paid-up capital of NPR 1.0342 billion. Complementing this, the company has accumulated a substantial reserve fund of NPR 1.74 billion. The significant reserve fund not only provides a strong financial cushion against unforeseen economic fluctuations but also offers flexibility for future growth initiatives, potential dividend distributions, or strategic investments. This strong capital base and healthy reserves position CHDC favorably for sustained growth and stability in the dynamic Nepalese financial market. Investors will likely view these results as a positive sign of the company's fundamental strength and its potential for continued value creation in the long term.
Chhimek Laghubitta Reports Modest Profit Growth in Q4 FY 2082/83, But EPS Declines
Chhimek Laghubitta Bittiya Sanstha Limited (CBBL), a prominent player in Nepal's microfinance sector, has released its unaudited financial results for the fourth quarter of the fiscal year 2082/83. While the institution recorded a modest increase in its net profit, a closer look at the figures reveals a notable decline in its earnings per share (EPS), a metric closely watched by investors. This mixed performance provides a nuanced picture of the company's operational efficiency and shareholder value generation over the past year. For the period ending Ashar of the last fiscal year, CBBL reported a net profit of NPR 1.29 billion 89 lakhs. This represents a 7.10% increase compared to the NPR 1.21 billion 28 lakhs earned in the corresponding period of the previous fiscal year. The primary driver behind this growth in net profit was a slight but steady increase in the microfinance's net interest income, indicating a healthy expansion of its core lending activities. Alongside, net fee and commission income saw a robust surge of 18.85%, contributing significantly to the overall revenue stream. The company's total operating income also grew by 8%, translating into a 6.72% rise in operating profit, underscoring efficient management of operational costs relative to revenue generation. However, the positive trajectory in net profit was overshadowed by a decline in earnings per share (EPS). CBBL's EPS decreased by NPR 1.81, settling at NPR 35.91 from the previous period's NPR 37.72. This divergence between rising net profit and falling EPS typically suggests an increase in the company's outstanding share capital, which dilutes the earnings attributable to each share. While the report doesn't explicitly state a capital increase, this is a common reason for such a trend, potentially from bonus shares or rights issues in prior periods. Investors often prioritize EPS as a direct indicator of profitability per share, making this decline a point of consideration. As of the end of the fourth quarter, Chhimek Laghubitta reported a distributable profit of NPR 2.16 billion 3 lakhs. This figure is crucial for shareholders, as it represents the portion of profit available for distribution as dividends. The distributable earnings per share stood at NPR 59.72, which is a key metric for assessing potential dividend payouts. The company's per-share net worth was recorded at NPR 251.06, reflecting the intrinsic value of each share based on its assets minus liabilities. The price-to-earnings (P/E) ratio was 25.68 times, offering insights into how the market values the company's earnings. Financially, CBBL maintains a strong capital base with a paid-up capital of NPR 3.61 billion 72 lakhs and a substantial reserve fund amounting to NPR 5.46 billion. This robust reserve position provides a cushion against potential risks and supports future growth initiatives. The microfinance's operational scale is evident in its deposit and borrowing portfolio, which reached NPR 47.62 billion 65 lakhs by the end of the fiscal year. From these funds, CBBL deployed NPR 45.49 billion as loans, demonstrating its significant role in providing financial access to underserved communities across Nepal. The institution's ability to manage a large loan book while maintaining profitability, despite the EPS dip, highlights its foundational strength in the competitive microfinance landscape. Investors will be keen to observe how CBBL addresses the EPS trend and leverages its strong capital and operational base for sustainable growth and enhanced shareholder returns in the upcoming fiscal year.
Nepal Rastra Bank to Raise Rs. 20 Billion Through 35-Day Deposit Collection Instrument
Nepal Rastra Bank (NRB) is set to raise Rs. 20 billion through a one-month deposit collection instrument via a competitive bidding process. The central bank’s Monetary Management Department will conduct the auction for the deposit collection instrument with a maturity period of 35 days. According to a notice issued by NRB, banks and financial institutions willing to participate in the auction must submit their bids exclusively through the Online Bidding System (OBSS) by 3:00 PM today. The deposit will be collected at the interest rate determined through the bidding process. Both the principal and interest will be repaid on Ashwin 2. Participating institutions can submit bids starting from a minimum of Rs. 100 million, with subsequent bid amounts required to be in multiples of Rs. 100 million, up to the total amount called for in the auction. The Rs. 20 billion deposit collection amount will be allocated starting with the bids offering the lowest interest rate and proceeding upward until the total called amount is allocated. If demand exceeds the available amount among bids offering the same interest rate, the allocation will be made on a pro-rata basis. Only Class ‘A’, ‘B’ and ‘C’ banks and financial institutions licensed by Nepal Rastra Bank will be eligible to participate in the auction. Participating institutions must specify both the amount they wish to deposit and the interest rate they are willing to accept. NRB stated that the amount corresponding to accepted bids will be debited from the respective counterparty’s account maintained at the central bank. The collected deposits will then be placed in a separate account. Upon maturity of the deposit collection instrument, the collected amount along with the applicable interest will be credited to the respective participating institution’s account maintained at Nepal Rastra Bank. However, the deposit amount collected through the instrument cannot be included in the investment portfolio of the respective bidder. It can, however, be counted toward the Statutory Liquidity Ratio (SLR) and liquidity ratio requirements as prescribed by Nepal Rastra Bank. The participating institutions will not be permitted to withdraw or receive premature payment of the collected deposit before the specified maturity date.
NEPSE Launches After Market Orders on TMS
Nepali stock investors no longer need to freeze their busy workdays between 11 AM and 3 PM to trade shares. The Nepal Stock Exchange (NEPSE) has introduced the After Market Order (AMO) feature on its online Trade Management System (TMS), allowing investors to set up their buy and sell requests anytime outside standard trading hours. This new feature gives users the freedom to set a specific price limit within 15% above or below the previous day’s final closing price. When the market prepares to open the next morning, any order that falls within 3% of the early opening price gets automatically forwarded into the active trading system. To protect investors and ensure fair trading, the system automatically runs balance and stock checks before forwarding any order. It verifies that buyers have sufficient cash deposited in their trading account and ensures sellers actually hold the requested shares in their digital share account (Demat). Every off hour request remains valid for a single trading day; if the market closes without executing the trade, the order is automatically cancelled. This rollout is a major relief for full time employees, business owners, and non resident Nepalis working across different time zones who usually miss out on daytime trading. However, traders should note that modifying or cancelling an order once submitted through this off hour system can still be a bit tricky, so double a checking your entry prices before hitting submit is key. Learn More
NRN Infrastructure and Development Plunges into Loss in Q4 FY 2082/83 Amidst Investment Value Decline
NRN Infrastructure and Development (NRN) Limited has reported a significant financial downturn, registering a net loss in the fourth quarter of Fiscal Year 2082/83. According to the company's unaudited financial statements, NRN has been pushed into a state of severe financial pressure, marking a stark contrast to its performance in the previous fiscal year. In a dramatic reversal of fortunes, NRN Infrastructure and Development recorded a net loss of NPR 77.6 million by the end of Ashar (mid-July) of the current fiscal year. This comes after the company had posted a substantial net profit of NPR 1.46 billion in the preceding fiscal year. The primary drivers behind this sharp decline are attributed to a significant erosion in the value of its investments and a drastic contraction in its total income. The financial report further details the challenging operational environment faced by the company. While NRN's financial income saw a notable increase of 50.90% during the review period, this positive aspect was overshadowed by an alarming 98.51% decrease in its total income. This disparity suggests that core operational revenues have been severely impacted, despite some growth in financial earnings. Compounding the issue, the company's expenses also rose by 32.43% over the same period, further squeezing its financial margins and contributing to the overall loss. For investors, these figures translate into a negative earnings per share (EPS) of NPR 4.32 by the end of the last fiscal year. Despite the losses, the company's net worth per share remains positive at NPR 169.23, indicating that its assets still exceed its liabilities, though the erosion of earnings is a clear concern. This negative EPS signals that the company is currently not generating profit for its shareholders, a critical metric for investor confidence. NRN Infrastructure and Development has historically focused on expanding its investments across hydropower, infrastructure, and various other productive sectors. The company acknowledges that its performance has been significantly affected by prevailing market volatility and broader financial imbalances. These external factors have evidently created a challenging landscape for its long-term investment strategies. Despite the current financial headwinds, NRN provides an update on its project portfolio, which offers a glimpse into its future potential. Out of the six hydropower projects in which the company has invested, five have already commenced commercial operations. Furthermore, the recently invested Upper Myagdi Hydropower Project, with a capacity of 53.5 MW, has achieved 51% completion. The company has set an ambitious target to bring this project into commercial production by March 5, 2027. The successful completion and operation of such projects are crucial for NRN's long-term revenue generation and a potential return to profitability. Investors will be closely watching the progress of these projects as a key indicator of the company's recovery trajectory and future value creation.
NEPSE Pre-Open Session Sees Modest Dip as Kumari Bank Reports Robust Q4 Profit
Kathmandu, Nepal – The Nepal Stock Exchange (NEPSE) commenced its final trading day of the week with a slight downturn in the pre-open session, signaling a cautious start to Friday's market activities. The benchmark NEPSE index registered a modest decrease of 2.10 points, settling at 2649.11. This follows a positive close on Thursday, where the index had gained 8.81 points to reach 2651.21. The Sensitive Index, which tracks the performance of 'A' class companies, also mirrored this sentiment, declining by 0.86 points during the same pre-open period. The pre-open session, a crucial indicator of early market sentiment, saw a total of 26,084 units of shares traded across 122 transactions involving 61 different stocks. The cumulative turnover for this brief window amounted to NPR 14,557,038. A closer look at the stock performance reveals a mixed bag: 20 stocks experienced an increase in their value, while 35 stocks saw a decline. The remaining 6 stocks maintained their previous closing prices, indicating a relatively balanced yet slightly negative bias in the initial trading phase. This early market activity often sets the tone for the day, reflecting investor expectations and immediate reactions to overnight news or macroeconomic developments. In a separate but significant development for the financial sector, Kumari Bank Limited (KBL) has released its unaudited financial statements for the fourth quarter of the last fiscal year. The report highlights a robust performance, with the bank achieving an impressive net profit of approximately NPR 7.5 billion. This substantial profit figure underscores the bank's operational efficiency and strategic financial management over the past year. As a key player in Nepal's commercial banking landscape, Kumari Bank's strong Q4 results are likely to be closely scrutinized by investors, analysts, and stakeholders. The fourth-quarter results are particularly vital as they provide a comprehensive overview of a company's annual performance and often influence dividend declarations and future growth projections. A net profit of NPR 7.5 billion for a commercial bank of Kumari Bank's stature suggests healthy asset quality, effective loan book management, and potentially strong interest income generation. While specific comparative data from previous quarters or the previous fiscal year is not provided in the initial report, such a figure generally indicates a positive trajectory and solidifies the bank's position within the competitive banking sector. Investors will be keen to delve deeper into the full financial report to understand the drivers behind this profitability, including net interest income, fee and commission income, and provisions for impairment charges. The combination of a cautious market opening and strong corporate earnings from a major commercial bank presents a nuanced picture for investors. While the overall market sentiment in the pre-open session was slightly negative, individual company performances like Kumari Bank's can often provide pockets of opportunity and resilience. This dynamic interplay between broader market trends and specific corporate fundamentals is a constant feature of the NEPSE, requiring investors to remain vigilant and informed.
Nepal Rastra Bank to Absorb NPR 20 Billion in Liquidity Through One-Month Deposit Auction
In a strategic move to manage market liquidity, Nepal Rastra Bank (NRB), the central bank of Nepal, has announced its intention to collect NPR 20 billion through a one-month deposit collection instrument. This significant operation, conducted via an auction mechanism, underscores the central bank's proactive approach to monetary management and its commitment to maintaining financial stability within the Nepali economy. The Monetary Management Department of NRB is spearheading this initiative, inviting eligible banks and financial institutions (BFIs) to participate in the bidding process for a 35-day deposit collection period. The auction is designed to absorb excess liquidity from the financial system, a crucial step in controlling inflationary pressures, stabilizing short-term interest rates, and ensuring the effective implementation of the central bank's monetary policy objectives. By withdrawing surplus funds, NRB aims to fine-tune the money supply, influencing lending rates and overall economic activity. Interested 'A', 'B', and 'C' class BFIs, which are licensed by Nepal Rastra Bank, are eligible to participate in this auction. These institutions are required to submit their bids through the NRB's Online Bidding System (OBSS) by 3:00 PM today. The competitive bidding process will determine the interest rate at which the deposits will be collected, reflecting the prevailing market conditions and the demand for short-term funds. This market-driven approach ensures transparency and efficiency in the allocation of funds. The terms of the auction stipulate a minimum bid amount of NPR 100 million, with subsequent bids required to be in multiples of NPR 100 million, up to the total invited amount. The allocation of the collected funds will prioritize bids offering the lowest interest rates. In scenarios where multiple bids quote the same lowest interest rate, and the cumulative demand exceeds the remaining available amount, a pro-rata allocation method will be employed to ensure equitable distribution among the successful bidders. For participating BFIs, the approved bid amounts will be debited from their respective accounts held at Nepal Rastra Bank and subsequently deposited into a separate account specifically designated for these collected deposits. A key aspect for investors and financial analysts to note is that while these collected deposits cannot be counted towards the participating banks' investment portfolios, they are eligible to be included in the calculation of Statutory Liquidity Ratio (SLR) and other liquidity ratios, as per NRB's directives. This provision offers a regulatory benefit to banks, allowing them to meet their compliance requirements while earning a return on their temporarily parked funds. Principal and interest payments for these deposits are scheduled for Ashoj 2 (Nepali calendar date), ensuring a clear and predictable return for the participating institutions. It is also important to highlight that premature withdrawal or early payment of these collected deposits is strictly not permitted, reinforcing the commitment to the 35-day tenure. This operation is a standard tool in the central bank's arsenal for open market operations, reflecting its continuous efforts to manage systemic liquidity and foster a stable financial environment conducive to economic growth. The NPR 20 billion absorption signals NRB's current assessment of market liquidity and its intent to maintain a balanced monetary stance.