Latest NEPSE News & Share Market Updates
SEBON Forms Primary Market Reform Task Force to Strengthen Nepal's Capital Market
The Securities Board of Nepal (SEBON) has formed a Primary Market Reform Facilitating Task Force to implement key regulatory reforms aimed at making Nepal's primary capital market more transparent, credible, efficient, and investor-friendly. The task force, chaired by the Executive Director of SEBON's Regulation Department, has been established as part of the Regulatory Reform Agenda under the Capital Market Policy for Fiscal Year 2083/84. The seven-member committee comprises three officials from SEBON, one representative from Nepal Stock Exchange (NEPSE), the President of the Merchant Bankers Association of Nepal, and the Coordinator of the Capital Market Committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). SEBON stated that the task force may also invite experts and representatives from relevant organizations whenever necessary. These include the Institute of Chartered Accountants of Nepal (ICAN), the Electricity Regulatory Commission (ERC), the Independent Power Producers' Association, Nepal (IPPAN), the Stock Broker Association of Nepal (SBAN), CDS and Clearing Limited (CDSC), and other concerned stakeholders. The task force held its inaugural meeting at SEBON's office on Shrawan 19, 2083, where members discussed priority areas for improving Nepal's primary securities market. According to SEBON, the committee's terms of reference include reviewing and recommending reforms related to primary market policies, public issuance of securities, the book-building process, merchant bankers, IPO allocation mechanisms, digital IPO systems, IPO eligibility criteria, IPO pricing, institutional investors, anchor investors, due diligence, post-issue monitoring, and other matters concerning the primary market. The initiative is expected to support the modernization of Nepal's capital market framework by strengthening regulatory oversight, enhancing market efficiency, and improving investor confidence in the primary securities market.
Landmark Reforms for Nepal's Employees Provident Fund: Expanding Reach, Enhancing Financial Discipline, and Boosting Housing Access
Nepal's government is embarking on a significant overhaul of the Employees Provident Fund (EPF) Act, a move poised to reshape the social security landscape for millions of public sector employees across the nation. A new bill, recently tabled in Parliament, aims to bring all three tiers of government — federal, provincial, and local — under a unified EPF umbrella, while simultaneously introducing more stringent financial regulations for loans and advances and pioneering new avenues for housing support. This comprehensive amendment is a pivotal step towards fostering greater equity, financial discipline, and economic empowerment among Nepal's vast public workforce. Historically, the EPF's services and benefits have predominantly catered to federal government employees, leaving a substantial segment of the public service, particularly those at the provincial and local levels, outside its direct purview. The proposed legislative changes are set to rectify this long-standing disparity, extending the EPF's protective net to permanent employees across all seven provinces and over 750 local administrative units. This expansion is not merely an administrative adjustment; it represents a fundamental commitment to inclusive growth and social justice, ensuring that all government personnel, regardless of their administrative tier, have access to robust social security provisions. By integrating these previously underserved employees, the government aims to mitigate economic vulnerabilities and enhance the overall financial stability of a critical segment of the national workforce. A cornerstone of the new bill is its emphasis on bolstering financial discipline within the EPF's loan and advance mechanisms. Recognizing the importance of prudent fund management and responsible borrowing, the proposed amendments introduce stricter, more transparent guidelines. Under the revised framework, provident fund contributors will only be eligible to apply for a new loan or advance once the principal and interest of any previously taken loan have been fully repaid. This measure is designed to curb potential misuse of funds, encourage greater financial accountability among employees, and safeguard the long-term sustainability of the provident fund itself. It marks a departure from some of the more lenient provisions of the past, signaling a clear intent to instill a culture of fiscal responsibility. Beyond financial discipline, the EPF is also set to play a more active role in addressing one of the most pressing needs of its contributors: housing. The new bill paves the way for the EPF to directly invest in housing projects developed and operated by legally established companies or institutions. Crucially, employees will then be able to secure special advances from the EPF to purchase homes or land within these approved projects. This innovative approach is expected to significantly ease the burden of homeownership for countless employees, transforming the aspiration of owning a home into a more attainable reality. Such direct involvement by the EPF could also stimulate the housing sector, contributing to broader economic activity and development. Furthermore, the amendments seek to clarify and strengthen the operational aspects of the fund. The right of contributors to withdraw accumulated funds as advances, when necessary, has been explicitly defined, and the processes for accounting and disbursing these withdrawals are being streamlined for greater efficiency and transparency. Obscure provisions related to interest accrual and returns on accumulated savings are also being removed, ensuring that contributors receive clear and guaranteed returns on their long-term savings. The anticipated impact of these reforms is multifaceted. On one hand, the inclusion of provincial and local level employees is expected to generate considerable enthusiasm and a sense of belonging among these civil servants. On the other, the stricter loan repayment policies are projected to discourage defaults and foster a more responsible borrowing environment. Ultimately, this legislative initiative aims to transform the Employees Provident Fund into a more modern, inclusive, and effective institution, capable of delivering enhanced social security benefits to millions of Nepalis. Once passed by Parliament and enacted into law, these far-reaching amendments are poised to leave a lasting positive imprint on the economic well-being and social fabric of the nation.
Finance Minister Swarnim Wagle Urges Banks to Support Budget Implementation and Economic Transformation
Finance Minister Dr. Swarnim Wagle has said the government's budget for the fiscal year 2083/84 provides a clear roadmap for Nepal's economic transformation and stressed that the government's immediate priority is its effective implementation. Speaking during a meeting with chief executive officers (CEOs) of commercial banks at the Ministry of Finance in Singha Durbar on Tuesday, the Finance Minister called on the banking sector to provide constructive suggestions and work closely with the government to translate the budget's objectives into tangible outcomes. According to the minister's secretariat, Dr. Wagle sought recommendations on the structural reforms needed to increase bank lending to productive sectors of the economy. He also invited feedback on the future direction of monetary policy, banking regulation and supervision, and ways to strengthen coordination among the Ministry of Finance, Nepal Rastra Bank, and the banking industry. "We share a common goal of revitalizing Nepal's economy through higher investment, expanded production, job creation, and restoring confidence in the private sector," Dr. Wagle said. Describing commercial banks as the economy's most important financial intermediaries, he noted that they serve a broad spectrum of stakeholders, including depositors, entrepreneurs, farmers, industrialists, investors, and young people seeking to start businesses. As a result, banks are in the best position to understand market sentiment, investor confidence, and expectations for the future, he added. The Finance Minister said the government is moving ahead with regulatory, legal, and institutional reforms, but emphasized the need to understand why the banking system's excess liquidity has not translated into higher investment and productive economic activity. "We want to build an economy driven not by reactive measures but by confidence and optimism about the future," he said, urging the banking sector to view the dialogue as more than a routine consultation. Instead, he called for a collaborative effort to position Nepal's financial system as a leading partner in the country's economic transformation. Dr. Wagle further stated that the relationship between the government and the banking sector extends beyond that of a regulator and regulated institutions, describing it as a shared national responsibility. He said both sides must work together to accelerate economic growth, expand investment, create employment opportunities, and maintain financial stability. Concluding his remarks, the Finance Minister underscored the importance of building mutual trust to boost investment, increase production, and guide Nepal toward a new phase of higher economic growth and productivity.
SEBON Initiates Major Secondary Market Overhaul: Committee Formed to Roll Out Margin Lending, Intraday Trading, and More
The Securities Board of Nepal (SEBON) has taken a significant stride towards modernizing the nation's capital market with the formation of a dedicated committee tasked with coordinating and facilitating the implementation of crucial secondary market reforms. This strategic move signals SEBON's unwavering commitment to enhancing market efficiency, liquidity, and investor participation, aligning Nepal's stock exchange with international best practices. The newly established committee is a direct response to the government's outlined capital market reforms in the Fiscal Year 2083/84 Budget and SEBON's own Capital Market Policy for the same fiscal year. Its mandate is broad, encompassing the phased introduction of several transformative services, including margin lending, intraday trading, securities lending and borrowing (SLB), and covered short selling. These instruments are vital for a mature and dynamic stock market, offering investors greater flexibility and avenues for strategic trading. Leading this pivotal initiative is the Executive Director of SEBON's Supervision Department, ensuring direct oversight and expertise from the regulatory body. The committee's composition reflects a collaborative approach, bringing together key stakeholders from across the capital market ecosystem. It includes three representatives from SEBON itself, alongside one representative each from the Nepal Stock Exchange (NEPSE), CDS and Clearing Limited (CDSC), and the Stock Broker Association of Nepal (SBAN). This diverse representation is crucial for ensuring that the reforms are not only robust from a regulatory standpoint but also practical and implementable from operational and market participant perspectives. The committee's responsibilities are comprehensive. It is charged with recommending the necessary legal, technical, operational, and procedural frameworks required to introduce these new market services effectively. Furthermore, it will oversee the meticulous preparations for their phased implementation, coordinate all activities related to secondary market reforms, and foster collaboration with banks, financial institutions, and other relevant stakeholders as needed. This holistic approach aims to ensure a smooth transition and widespread adoption of the new services. SEBON's reform roadmap outlines a clear, four-phase introduction strategy: 1. **Phase I: Margin Lending:** This will allow investors to borrow funds against their securities to purchase more shares, potentially boosting market liquidity and trading volumes. While offering opportunities for amplified returns, SEBON's careful implementation will also focus on robust risk management frameworks to protect investors. 2. **Phase II: Intraday Trading:** This feature will permit investors to buy and sell securities within the same trading day, capitalizing on short-term price movements. Intraday trading is expected to significantly increase market turnover and provide active traders with more dynamic opportunities. 3. **Phase III: Securities Lending and Borrowing (SLB):** SLB facilitates the temporary transfer of securities from one party to another, typically for short selling or hedging purposes. This mechanism is fundamental for improving market efficiency, enabling better price discovery, and providing liquidity to the market. 4. **Phase IV: Covered Short Selling:** This advanced trading strategy involves selling borrowed securities with the expectation of buying them back at a lower price. "Covered" implies that the seller has already borrowed or arranged to borrow the shares, reducing settlement risk. It plays a crucial role in price discovery and allows investors to profit from declining stock prices, balancing market sentiment. The committee has already commenced its vital work, with initial discussions focusing on the draft Margin Lending Regulations. This marks a concrete first step towards realizing SEBON's ambitious secondary market reform agenda. The phased introduction of these sophisticated products and services is anticipated to yield multiple benefits for the Nepalese capital market. It is expected to significantly improve market liquidity, enhance trading efficiency, provide investors with greater flexibility in their investment strategies, and ultimately align Nepal's capital market with established international best practices. This initiative is poised to transform NEPSE into a more vibrant, resilient, and attractive destination for both domestic and international investors.
प्राथमिक बजार सुधारका लागि धितोपत्र बोर्डद्वारा सात सदस्यीय कार्यदल गठन: IPO र बुक बिल्डिङलाई व्यवस्थित बनाइने
नेपाल धितोपत्र बोर्डले प्राथमिक बजार (Primary Market) लाई थप पारदर्शी, विश्वसनीय र लगानीकर्ता मैत्री बनाउने उद्देश्यले एक उच्चस्तरीय 'प्राथमिक बजार सुधार सहजीकरण कार्यदल' गठन गरेको छ।बोर्डको नियमन विभागका कार्यकारी निर्देशक बिनयदेब आचार्यको संयोजकत्वमा गठित उक्त कार्यदल सात सदस्यीय रहेको छ। कार्यदलमा धितोपत्र बोर्डका तीन जना कर्मचारी, नेपाल स्टक एक्सचेञ्ज लिमिटेड (NEPSE) का एक जना प्रतिनिधि, मर्चेण्ट बैंकर्स एशोसिएसन अफ नेपालका अध्यक्ष र नेपाल उद्योग वाणिज्य महासंघ (FNCCI) को पूँजी बजार समितिका संयोजक सदस्य रहेका छन्। पहिलो बैठक सम्पन्न आर्थिक वर्ष २०८३/८४ को पूँजीबजार नीति अन्तर्गत रहेको 'नियामकीय सुधार' (Regulatory Reform Agenda) कार्यान्वयन गर्ने लक्ष्यका साथ गठित यस कार्यदलको पहिलो बैठक २०८३ साउन १९ गते बोर्डको कार्यालयमा सम्पन्न भएको छ। बैठकमा प्राथमिक बजारको वर्तमान अवस्था र सुधारका सम्भावित क्षेत्रबारे विस्तृत छलफल गरिएको थियो। के-के हुनेछन् कार्यदलका कामहरू? कार्यदलले प्राथमिक बजारसँग सम्बन्धित निम्न विषयवस्तुहरूमा केन्द्रित रहेर काम गर्ने बोर्डले जनाएको छ: धितोपत्रको सार्वजनिक निष्काशन र बुक बिल्डिङ्ग प्रक्रिया। IPO बाँडफाँड (IPO Allocation) र डिजिटल IPO (Digital IPO)। IPO को योग्यता (Eligibility) र मूल्य निर्धारण (Pricing)। मर्चेन्ट बैंकरको भूमिका र ड्यु डेलिजेन्स (Due Diligence)। संस्थागत लगानीकर्ता (Institutional Investors) र एङ्कर इन्भेस्टर्स (Anchor Investors)। निष्काशन पछिको अनुगमन (Post Issue Monitoring)। विज्ञहरूको सहभागिता रहने कार्यदलले आवश्यकता अनुसार अन्य सरोकारवाला निकायका विज्ञहरूलाई पनि आमन्त्रित गर्न सक्ने अधिकार पाएको छ। यसअन्तर्गत नेपाल चार्टर्ड एकाउन्टेन्ट्स संस्था (ICAN), विद्युत नियमन आयोग (ERC), स्वतन्त्र ऊर्जा उत्पादकहरूको संस्था, नेपाल (IPPAN), स्टक ब्रोकर एसोसिएसन अफ नेपाल (SBAN) र सिडिएस एण्ड क्लियरिङ्ग लिमिटेड (CDSC) का प्रतिनिधिहरूलाई आवश्यकताका आधारमा छलफलमा सहभागी गराइनेछ। यो कदमले नेपालको पूँजीबजारको प्राथमिक तहमा रहेका नीतिगत र प्रक्रियागत समस्याहरू समाधान हुने र लगानीकर्ताको मनोबल उच्च हुने अपेक्षा गरिएको छ। साहस ऊर्जा लिमिटेड (SAHAS) ले गत आर्थिक वर्षको चौथो त्रैमाससम्मको अपरिष्कृत वित्तीय विवरण सार्वजनिक गरेको छ। वित्तीय विवरण अनुसार गत आर्थिक वर्ष कम्पनीको विद्युत बिक्री आम्दानी र खुद नाफामा अघिल्लो आर्थिक वर्षको तुलनामा बढेको छ।
Excel Development Bank's Net Profit Soars; Distributable Profit Turns Positive, EPS at Rs. 24.76
Excel Development Bank Limited (EDBL) has delivered a remarkable financial performance in the fourth quarter of FY 2082/83, reporting a net profit of Rs. 30.94 crores, a staggering 22,784.80% increase from Rs. 13.51 lakhs recorded in the corresponding quarter of the previous fiscal year. The sharp rise in profitability was mainly driven by higher net interest income, lower funding costs, and improved operating efficiency. The bank's net interest income grew by 14.72% year-on-year to Rs. 64.88 crores, up from Rs. 56.55 crores a year earlier. Total deposits increased by 12.63% to Rs. 18.58 Arba, while loans and advances expanded by 8.83% to Rs. 13.18 Arba. During the review period, the bank booked impairment charges of Rs. 19.42 crores, which weighed on its overall earnings. Operating profit witnessed an exceptional jump, rising to Rs. 53.95 crores from Rs. 11.21 crores in the previous year. Retained earnings declined to Rs. 17.97 crores, while total reserves increased to Rs. 78.41 crores. The bank also strengthened its capital position, with the capital adequacy ratio improving to 14.63% from 12.58% a year ago. Meanwhile, the cost of funds declined to 2.89% from 3.87%, while the non-performing loan (NPL) ratio stood at 4.57%. Reflecting the significant improvement in earnings, earnings per share (EPS) surged to Rs. 24.76 from Rs. 0.11 in the previous year, while net worth per share rose by 14.27% to Rs. 177.85. Based on the quarter-end market price of Rs. 561.30 per share, the bank's price-to-earnings (P/E) ratio stood at 22.67 times. Report: Major Financial Highlights: Particulars (In Rs '000) Excel Development Bank Limited Q4 2082/83 Q4 2081/82 Difference Paid Up Capital 1,249,694.47 1,249,694.47 0.00% Share Premium 9,075.47 9,075.47 0.00% Retained Earnings 179,713.89 -12,609.79 -1525.19% Reserves 784,136.55 698,959.62 12.19% Deposit 18,582,215.13 16,498,527.06 12.63% Loans & Advances 13,188,634.83 12,118,268.58 8.83% Net Interest Income 648,818.33 565,542.44 14.72% Personnel Expenses 278,415.49 226,017.95 23.18% Impairment Charges -194,293.36 172,665.20 -212.53% Operating Profit 539,593.94 112,125.19 381.24% Net Profit 309,400.75 1,351.99 22784.80% Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 179,713.89 -12,609.79 -1525.19% Capital Adequacy (%) 14.63 12.58 16.30% NPL (%) 4.57 6.69 Cost of Fund (%) 2.89 3.87 -25.32% EPS (In Rs.) 24.76 0.11 22784.80% Net Worth per Share (In Rs.) 177.85 155.65 14.27% Qtr end PE Ratio (times) 22.67 - - Qtr End Market Price 561.3 - -
NEPSE Index Loses For Second Consecutive Day ; All Sectors Close at Red
The Nepal Stock Exchange (NEPSE) recorded a moderate loss today, falling by 21.15 points (0.78%) to close at 2,663.18. This follows a loss of 1.20 points in the previous trading session. The benchmark index opened at 2685.42 and fluctuated between an intraday high of 2,687.17 and a low of 2,659.80 before settling at the close. Total turnover for the day amounted to Rs. 4.07 Arba, with 10,761,396 shares traded across 343 companies through 52,272 transactions. The total market capitalization stood at Rs. 45.76 Kharba, with a float market capitalization of Rs. 15.49 Kharba. Khanikhola Hydropower Co. Ltd. (KKHC) topped the turnover chart, recording transactions worth Rs. 40.66 crores. The company’s stock closed at Rs. 315.90. Everest Colour Limited (ECL) led the gainers' list with a 14.99% gain. The stock closed at Rs. 1,731.40. Meanwhile, Saptakoshi Development Bank Ltd (SAPDBL) recorded the Highest fall, falling by 13.43%. The last traded price of the company was Rs. 831.10. Among sectors, the Manufacturing and Processing recorded the highest fall, falling by 1.31%, while the Finance Index recorded the least loss, down 0.14%. Top Buyer Broker's Top 10 Bought Companies Top Seller Broker's Top 10 Sold Companies
Nepal's Finance Minister Initiates 'Action Plan' to Revitalize Economy, Urges Banking Sector Collaboration
Nepal's economy currently finds itself at a peculiar and complex crossroads, grappling with an unusual paradox that has caught the attention of policymakers and investors alike. Despite commercial banks holding substantial liquidity and interest rates plummeting to historic lows, a palpable lack of enthusiasm persists among investors, hindering the much-needed economic dynamism. To address this critical challenge, Finance Minister Dr. Swarnim Wagle has embarked on a proactive mission to redefine the relationship between the government and the banking sector, aiming to inject renewed confidence and impetus into the market. In a pivotal meeting held on Tuesday at Singha Durbar with the Chief Executive Officers (CEOs) of commercial banks, Minister Wagle delivered a clear and compelling message: the government intends to transcend its traditional role as merely a regulator. Instead, it aspires to become a genuine partner, actively collaborating with the private sector to restore investor confidence and stimulate economic activity. This strategic shift underscores a recognition that sustainable economic growth cannot be achieved through top-down directives alone, but requires a collaborative ecosystem where both public and private sectors work in tandem. The Finance Minister's primary concern revolves around the pervasive market pessimism. Conventionally, a reduction in interest rates is expected to spur loan demand, thereby invigorating economic activities. However, the current scenario presents a stark contrast: despite the banking system being flush with excess liquidity, businesses remain hesitant to embark on new investments. This reluctance, Dr. Wagle articulated during the meeting, is a "matter of serious concern." He emphasized that monetary policy tools alone are insufficient to drive growth when market psychology remains negative. Therefore, he urged bankers to transcend their roles as mere data analysts and instead act as astute experts who can accurately gauge the market's pulse. Their invaluable experience, he noted, would serve as a crucial mirror, reflecting the practicality and efficacy of upcoming government policies. Traditionally, the relationship between the government and banks has been largely confined to that of a regulator and the regulated entity. However, Minister Wagle has introduced a fresh perspective, reframing this dynamic as a "shared national responsibility." He unequivocally stated that economic growth and job creation are not solely the government's agenda; they are equally vital objectives for the financial sector. To usher in a new era of high economic growth, the banking sector is called upon to assume the role of a "leading partner." In this regard, the government has pledged its readiness to facilitate this partnership by addressing legal complexities and implementing necessary procedural reforms, thereby creating a more conducive environment for investment and expansion. Another critical aspect highlighted during the discussion was the imperative for enhanced coordination. The Finance Minister acknowledged that a perceived disconnect between the Ministry of Finance, Nepal Rastra Bank (the central bank), and the commercial banking sector has often impeded the effective implementation of policies. He assured the attendees that this meeting was not merely a forum for discussion but a foundational step towards concrete action. The valuable suggestions garnered from the banking community would be meticulously transformed into a "concrete roadmap" for implementation, signaling a commitment to tangible outcomes. Minister Wagle firmly believes that the active participation of bankers is indispensable for the successful realization of the economic transformation outlined in the national budget. The government's objective is to foster an economy that is not merely reactive but proactively optimistic about its future. This renewed commitment to continuous collaboration with bankers sends a profoundly positive signal to the private sector. In a climate where capital is abundant but investment remains stagnant, the government's earnest endeavor to build trust and confidence with bankers is expected to ignite new enthusiasm in the market, thereby accelerating stalled economic activities and paving the way for a more vibrant and prosperous future for Nepal.
Nepal's Government Assures Fiscal Prudence Amidst Major Passport Act Overhaul
The Nepali government has recently announced significant amendments to the Passport Act, a move aimed at modernizing the country's passport issuance and management system. Crucially, officials have asserted that these extensive legal revisions will not impose any additional financial burden on the state treasury, a claim that underscores the government's commitment to fiscal responsibility. This legislative update comes at a time when Nepal is witnessing a substantial increase in the number of its citizens seeking opportunities abroad, necessitating a more efficient and contemporary passport service. The proposed bill, which seeks to streamline the entire passport process, has been accompanied by an official economic commentary. This commentary explicitly states that the new legal framework will not necessitate the establishment of any new governmental structures or bodies. Instead, the government plans to maximize the utilization of existing infrastructures, both within Nepal and at its diplomatic missions overseas. This strategic approach is designed to ensure that the implementation of the amended act does not exert additional pressure on the nation's financial resources, a clear indication of the government's policy to manage public funds judiciously. Under this new strategic vision, the focus will be on enhancing the effectiveness of current institutions rather than creating new positions or hiring additional personnel. The existing Department of Passports, Nepali diplomatic missions abroad, and immigration mechanisms are slated to be leveraged more efficiently. The operational methodologies of these established bodies will be refined to be more coordinated and accountable, thereby improving the processes of passport issuance, record management, and regulatory oversight. This integrated management approach is expected to deliver faster, more efficient, and citizen-centric services without incurring extra economic costs. The rationale behind these amendments is deeply rooted in the evolving demographic and economic landscape of Nepal. With a growing number of Nepalis migrating for employment, education, and other purposes, the demand for timely and hassle-free passport services has surged. The current system, while functional, has often faced challenges related to capacity, processing times, and accessibility, leading to inconveniences for citizens. By modernizing the legal framework, the government aims to address these bottlenecks, ensuring that citizens receive services that are on par with international standards. For investors and economic observers, the government's emphasis on fiscal neutrality is a positive signal. It suggests a disciplined approach to governance, where essential public services are improved without resorting to increased public expenditure or debt. This could contribute to overall economic stability and investor confidence, as it reflects a government capable of implementing reforms efficiently. Furthermore, a more streamlined passport system could indirectly benefit the economy by facilitating smoother international travel for business, tourism, and labor migration, all of which contribute significantly to Nepal's economic activity. The ability to manage a critical public service more effectively, without expanding the administrative footprint, demonstrates a mature approach to public sector reform. This move is expected to not only enhance citizen satisfaction but also reinforce the image of a government committed to prudent financial management and responsive public service delivery.
Nepal Grapples with Persistent LP Gas Scarcity Amidst Ample Imports; Parliamentary Committee Demands Urgent Cylinder Mapping
Nepal is currently facing a perplexing paradox in its domestic energy sector: a persistent scarcity of Liquefied Petroleum (LP) gas, despite consistently importing quantities that significantly exceed the nation's average consumption. This incongruity has sparked widespread frustration among ordinary consumers, whose kitchens are directly impacted by the erratic supply. According to data from the Ministry of Industry, Commerce, and Supplies, Nepal's typical monthly LP gas consumption ranges between 46,000 and 48,000 metric tons. However, current import figures have been ramped up to an impressive 60,000 metric tons per month. Despite this substantial increase in supply, consumers continue to struggle to access gas cylinders with ease. This glaring disparity has prompted a parliamentary committee to intervene, issuing a directive to the government to implement a 'cylinder mapping' system, aiming to bring transparency and efficiency to the distribution network. Ministry Secretary Narayan Prasad Sharma Duwadi attributes the current surge in demand, estimated at a sudden 20% increase, to a recent policy shift. Previously, only half-filled cylinders were sold, which disrupted the market's natural cylinder cycle. Now, with the reintroduction of full-cylinder sales, a large number of consumers are simultaneously seeking refills, leading to an artificial spike in immediate demand. However, consumer rights activists vehemently disagree with this assessment, arguing that the problem stems from fundamental managerial weaknesses and a pervasive lack of transparency within the distribution system. The parliamentary committee's proposed cylinder mapping initiative is seen as a crucial long-term solution to this recurring problem. Currently, the Nepal Oil Corporation (NOC), the state-owned oil monopoly, lacks comprehensive data on the total number of cylinders in circulation, their distribution across different companies, or the extent of potential hoarding. As Committee Chairman Rahabar Ansari succinctly put it, “Scarcity, even with sufficient gas flowing in from India, points to a significant leak in our distribution system.” Implementing cylinder mapping would enable real-time tracking of each cylinder's status, effectively deterring the creation of artificial shortages and the practice of hoarding, which often exacerbates supply crises. The parliamentary committee adopted an aggressive stance during its recent meeting, sternly warning officials that those unable to balance demand and supply, thereby causing distress to consumers, have no moral right to remain in their positions and should make way for more competent leadership. While gas industrialists have cited technical challenges, such as difficulties in adding more gas bullet tankers, the committee has largely placed the blame on the sluggishness and inefficiency of government bodies. The government has expressed optimism, claiming that the distribution system will improve within the next one to one-and-a-half months, following requests for increased supply from the Indian Oil Corporation (IOC). However, for the average Nepali household, the true measure of improvement will be how swiftly and effectively technology-driven solutions like cylinder mapping are implemented. Beyond immediate fixes, this crisis underscores the broader need for robust infrastructure, diversified energy sources, and stringent regulatory oversight to ensure long-term energy security and market stability in Nepal. The economic implications of such shortages are significant, contributing to inflation and impacting household budgets, making a transparent and efficient LP gas market paramount for the nation's economic well-being and consumer confidence.
NEPSE Index Extends Decline for Second Day, Market Turnover Dips
The Nepal Stock Exchange (NEPSE) continued its bearish trajectory on the second trading day of the week, Tuesday, marking a consecutive decline after a similar downturn on Monday. This persistent downward movement has raised concerns among investors, signaling a period of cautious sentiment in the market. On Tuesday, the NEPSE index shed a significant 21.15 points, closing at 2663.18. This dip reflects a broader market weakness, which was also evident across other key indices. The Sensitive Index, which tracks the performance of 'A' class companies, decreased by 2.66 points. Similarly, the Float Index, representing freely traded shares, fell by 1.40 points, and the Sensitive Float Index saw a decline of 1.08 points. These movements collectively paint a picture of widespread selling pressure affecting various segments of the market. Accompanying the index's fall was a noticeable reduction in market turnover, indicating a decrease in overall trading activity and liquidity. On Monday, the market had witnessed transactions worth NPR 4.57 billion. However, on Tuesday, the total transaction volume dropped to NPR 4.078 billion, involving 10.761 million shares traded across 52,272 transactions from 343 listed stocks. This decline in turnover suggests that investors are either holding back from making new investments or are less active in offloading their holdings, contributing to a subdued market environment. A lower turnover often implies reduced investor confidence or a lack of strong buying interest to counter the selling pressure. Despite the overall market downturn, a few stocks managed to defy the trend. Everest Color Limited continued its extraordinary run, trading at the positive circuit level for the twelfth consecutive trading day. This remarkable performance highlights strong investor interest and positive sentiment surrounding the company, possibly driven by specific corporate news or speculative buying. In the hydropower sector, Khanikhola Hydropower Company saw its share price surge by over 10%, while Joshi Hydropower Company recorded a gain of more than 5%. These gains suggest a selective interest in the energy sector, perhaps due to expectations of improved financial performance or favorable regulatory developments. Conversely, some stocks experienced significant losses. Saptakoshi Development Bank emerged as the biggest loser of the day, with its share price plummeting by 11.67%. Such a sharp decline could be attributed to various factors, including negative financial reports, adverse market rumors, or a general lack of investor confidence in the banking sector. In terms of transaction volume, Khanikhola Hydropower Company led the market, with shares worth NPR 406.6 million changing hands. This high turnover, coupled with its price surge, indicates robust trading activity and strong investor engagement in the stock. Siddhartha Bank also saw substantial trading, with approximately NPR 170 million worth of shares exchanged, while National Hydropower Company's transaction volume exceeded NPR 165 million. These figures underscore the continued interest in specific large-cap and mid-cap stocks, even during a broader market correction. A comprehensive look at the sectoral performance reveals a broad-based decline, with all 13 sub-indices closing in the red. The Manufacturing and Processing sub-index suffered the most significant blow, decreasing by 1.31%. This sector's underperformance could be linked to various macroeconomic factors, including rising input costs, supply chain disruptions, or reduced consumer demand. The 'Others' and 'Trading' sub-indices also experienced declines of more than 1%, further emphasizing the widespread nature of the market's negative sentiment. Such a broad-based decline across all sectors suggests that the market is grappling with systemic issues rather than isolated company-specific challenges. In a separate corporate development, Sahas Urja Limited (SAHAS) released its unaudited financial statements for the fourth quarter of the last fiscal year. The report indicated positive growth, with both the company's electricity sales revenue and net profit increasing compared to the previous fiscal year. This news provides a glimmer of positivity amidst the general market gloom, reminding investors that individual company performance can sometimes diverge from the overall market trend. The consecutive days of decline, coupled with reduced turnover and broad-based sectoral weakness, suggest that the NEPSE market is currently navigating a challenging phase. Investors are advised to exercise caution, conduct thorough research, and consider long-term investment strategies during such periods of volatility. The market's immediate future will likely depend on fresh catalysts, improved investor confidence, and clearer economic indicators.
Infinity Laghubitta Strengthens Operations with Comprehensive Risk Management and Leadership Program
Infinity Laghubitta Bittiya Sanstha Limited, a prominent microfinance institution in Nepal, recently concluded a pivotal two-day capacity building and review program titled "Managing Risk, Building Confidence." Held at the Landmark Hotel in Pokhara on Shrawan 15-16, 2083, this initiative underscores the institution's commitment to enhancing its operational resilience, strengthening corporate governance, and elevating the professional capabilities of its extensive workforce. Such strategic investments in human capital are crucial for microfinance institutions operating in dynamic and often challenging economic environments, ensuring sustainable growth and effective service delivery to underserved communities. The program's core objectives were multifaceted: to reinforce robust corporate governance practices, implement effective risk management strategies across all levels, and significantly boost the professional capacity of its staff. The event saw widespread participation, reflecting its organizational importance. It was chaired by CEO Gyanishwor Panta, with Board Chairman Bishnu Kumar Ghimire gracing the occasion as Chief Guest. Director Ramesh Kumar and founder shareholder Dinesh Adhikari were also present as special guests, highlighting the collective leadership's dedication to this initiative. Crucially, the program brought together branch chiefs, monitoring officers, and department heads from all 102 branches of Infinity Laghubitta, fostering a unified approach to organizational development and strategic alignment. A significant component of the program involved a detailed review of branch performance. This comprehensive assessment delved into past achievements, meticulously analyzed existing challenges, identified critical areas for improvement, and charted a clear future direction for each branch. Such a granular review is indispensable for a microfinance institution with a wide geographical footprint, allowing for the identification of best practices, addressing localized issues, and ensuring that all branches are aligned with the company's overarching strategic goals. It provides a platform for accountability and collaborative problem-solving, which are vital for maintaining operational efficiency and client satisfaction. Beyond performance review, the program featured intensive training sessions led by department heads. These sessions covered a spectrum of critical topics essential for the effective functioning of a microfinance institution. Key areas included advanced risk management techniques, crucial for mitigating financial and operational exposures inherent in micro-lending. Credit and recovery management were emphasized, focusing on optimizing loan portfolio quality and ensuring timely repayments, which are lifelines for MFIs. Training also extended to internal control systems, designed to safeguard assets and ensure compliance, and robust governance frameworks, vital for maintaining transparency and accountability. Furthermore, the program dedicated substantial attention to enhancing effective service delivery, ensuring that clients receive high-quality, responsive financial services. This is particularly important for microfinance institutions whose mission often revolves around financial inclusion and poverty alleviation. Leadership development was another cornerstone, equipping branch managers and department heads with the skills to inspire their teams, navigate complex operational challenges, and drive performance. Effective branch management techniques were also imparted, covering everything from operational efficiency to staff motivation and community engagement. By investing in such comprehensive capacity-building initiatives, Infinity Laghubitta is not merely conducting a training program; it is strategically fortifying its foundations for future growth and sustainability. In Nepal's competitive microfinance landscape, where regulatory compliance, client protection, and financial stability are paramount, continuous professional development and robust internal controls are non-negotiable. This program is expected to translate into improved operational efficiency, reduced non-performing assets, enhanced client trust, and ultimately, a stronger financial performance for the institution. It reaffirms Infinity Laghubitta's commitment to its stakeholders, including its investors and the communities it serves, by ensuring that its operations are managed with the highest standards of professionalism and foresight. This proactive approach positions Infinity Laghubitta to continue playing a vital role in Nepal's financial inclusion agenda.
Excel Development Bank Reports Phenomenal Q4 Growth: Net Profit Skyrockets by Over 22,000%, Distributable Profit Turns Positive
Excel Development Bank Limited (EDBL) has announced an extraordinary financial performance for the fourth quarter of the recently concluded fiscal year, showcasing a remarkable turnaround and significant growth across key financial indicators. The unaudited financial statement reveals a staggering increase in net profit, a robust improvement in asset quality management, enhanced dividend capacity, and a substantial boost in earnings per share, positioning the bank favorably for its shareholders and the broader market. The most striking highlight from the report is the monumental surge in net profit. EDBL recorded a net profit of NPR 309.4 million for the last fiscal year, a dramatic leap from just NPR 1.35 million reported in the fourth quarter of the previous fiscal year. This represents an astounding growth of over 22,800%, underscoring the bank's successful strategic initiatives and operational efficiencies implemented during the period. Such a significant jump is bound to capture the attention of investors and market analysts alike, signaling a strong recovery and growth trajectory for the regional development bank. A deeper dive into the financial statement reveals the primary drivers behind this impressive performance. The bank's net interest income, a core measure of its profitability from lending activities, saw a healthy increase of 14.72%. It rose from NPR 565.5 million in the previous fiscal year to NPR 648.8 million in the reporting period. This growth indicates a solid expansion in its interest-earning assets and effective management of its interest rate margins, reflecting a strong underlying business momentum. Crucially, a major contributor to the profit surge was the exceptional improvement in loan loss management. In the prior fiscal year, EDBL had provisioned NPR 172.6 million for potential loan losses (impairment charges). However, the latest report indicates a significant write-back of NPR 194.2 million due to improved loan recovery. This positive adjustment directly boosted the bank's bottom line, reflecting enhanced asset quality and effective recovery mechanisms. The ability to recover previously impaired loans not only strengthens the balance sheet but also frees up capital for future growth and lending opportunities, a critical factor for financial institutions. Operating profit, another vital indicator of a company's core business performance before taxes and non-operating expenses, also witnessed substantial growth. It escalated from NPR 112.1 million in the previous fiscal year to an impressive NPR 539.5 million. This robust increase in operating profit further solidifies the bank's operational efficiency and its capacity to generate profits from its primary banking activities, indicating a healthy and sustainable business model. Perhaps one of the most anticipated developments for shareholders is the transformation of distributable profit. After being in a negative position in the previous fiscal year, EDBL's distributable profit has turned positive, reaching NPR 179.7 million by the end of Ashar. This positive shift, achieved after regulatory adjustments and the absorption of accumulated losses from the prior fiscal year, places the bank in a strong position to distribute attractive dividends to its shareholders. Based on its paid-up capital, the bank's distributable profit per share stands at NPR 14.38, signaling a promising outlook for investor returns and potentially increasing the stock's appeal. From a balance sheet perspective, EDBL has also demonstrated commendable growth. The bank's total asset size has now surpassed NPR 21.32 billion, growing from NPR 18.98 billion in the review period. Its paid-up capital stands at NPR 1.2496 billion, complemented by a robust total fund of NPR 972.9 million, which includes general reserves, retained earnings, share premium, and other reserves. This strong capital base provides a solid foundation for future expansion and resilience against potential economic headwinds, ensuring stability and growth. Customer deposits have shown healthy growth, increasing by 12.63% from NPR 16.49 billion to NPR 18.58 billion, reflecting growing public trust and the bank's expanding customer base. Concurrently, loans disbursed to customers also saw an 8.82% increase, rising from NPR 12.11 billion to NPR 13.18 billion. This balanced growth in both deposits and lending activities indicates a well-managed expansion strategy, ensuring liquidity while capitalizing on lending opportunities in a competitive market. In conclusion, Excel Development Bank's Q4 financial report paints a picture of significant recovery and robust growth. The dramatic increase in net profit, coupled with the positive turnaround in distributable profit, signals strong operational and financial health. This performance not only enhances shareholder value through potential dividends but also reinforces the bank's position as a resilient and growing entity within Nepal's competitive financial landscape. Investors will likely view these results as a strong indicator of EDBL's potential for sustained growth and profitability in the coming fiscal years, making it a noteworthy player to watch.
Asar's Record-Breaking NPR 28.5 Billion Premium Collection Highlights Seasonal Dynamics in Nepal's Life Insurance Market
Nepal's life insurance sector concluded the fiscal year 2082/83 (mid-July 2024) with an extraordinary surge in premium collection during the final month of Asar. The industry collectively garnered an unprecedented NPR 28.51 billion in premiums, setting a new monthly record and significantly impacting the overall annual business volume. This remarkable performance underscores the intense efforts by life insurance companies to meet their annual targets and expand their market footprint as the fiscal year drew to a close. According to data from regulatory bodies, the total premium collected by all life insurers, including micro-life insurance companies and the foreign employment term life insurance pool, exceeded NPR 28.51 billion in Asar alone. This single month's collection represents a staggering 13.94% of the entire fiscal year's total life insurance business, which stood at approximately NPR 204.597 billion. To put this into perspective, if business were evenly distributed throughout the year, each month would account for roughly 8.33% of the total. Asar's contribution, therefore, was nearly double the monthly average, clearly illustrating a highly concentrated business activity at the year-end. The record-breaking collection in Asar was driven by both new policy sales and renewals. First premiums, generated from the sale of new insurance policies, amounted to over NPR 10.58 billion. Concurrently, renewal premiums from existing policyholders contributed a substantial NPR 17.93 billion. Furthermore, the industry issued more than 760,000 new insurance policies within this single month, highlighting an aggressive push for market penetration and customer acquisition. This pronounced year-end spike in premium collection is not an anomaly but rather a recurring trend in Nepal's insurance market. Several factors converge in the final month of the fiscal year to create this intense period of activity. Companies exert significant pressure on their sales teams and agents to achieve annual targets, which directly impacts employee performance evaluations, agent commissions, and incentive schemes. The drive to meet these ambitious goals often leads to a concentrated effort to finalize sales and renewals, resulting in a disproportionate accumulation of business in Asar. This phenomenon clearly demonstrates the deep influence of seasonal pressures on insurers' market strategies. For investors, this robust performance in Asar could signal strong fourth-quarter financial results for life insurance companies. However, it also raises questions about the sustainability and consistency of growth throughout the year. While the ability to mobilize such significant capital in a short period showcases the industry's potential and operational capacity, it also points to a potential over-reliance on year-end pushes. This seasonal dependency might lead to concerns about the quality of sales, potential for rushed decisions by policyholders, or even mis-selling practices under intense pressure. The trend highlights a need for the Nepalese insurance sector to strategize for more balanced and consistent business generation across all twelve months. While target-driven incentives are crucial, fostering a culture of steady growth and customer-centric sales throughout the year could lead to more stable and predictable financial performance. Regulators might also consider examining this seasonal concentration to ensure fair practices and sustainable market development. Ultimately, Asar's record-breaking performance is a testament to the dynamic nature of Nepal's life insurance market, offering both opportunities for growth and challenges for long-term strategic planning.
Domestic Airfares Soar as Aviation Fuel Prices Climb in Nepal
Nepal's domestic air travel sector is bracing for a significant impact following the recent surge in aviation fuel prices. Effective Monday, Shrawan 18 (corresponding to August 3rd in the Gregorian calendar), the Nepal Oil Corporation (NOC) implemented a substantial increase of NPR 20 per liter for aviation turbine fuel. This immediate adjustment by the state-owned oil monopoly has, in turn, compelled domestic airline operators to revise their fuel surcharges, leading to an overall hike in airfares across the country. This latest price revision underscores the inherent volatility of the global energy market and its direct repercussions on Nepal's landlocked economy. The domestic aviation industry operates on a dynamic pricing model, where fuel surcharges are automatically adjusted in response to changes in fuel costs. This system ensures that airlines can mitigate the financial risks associated with fluctuating input prices. Just recently, on Ashar 16, passengers enjoyed a notable reduction in airfares when aviation fuel prices dropped by NPR 40 per liter. However, the current upward trend has swiftly reversed those gains, placing an increased financial burden on travelers. For investors and the general public, understanding the specific impact on various routes is crucial. The Kathmandu-Dhangadhi sector, representing Nepal's longest domestic air route, has seen the steepest rise, with the fuel surcharge climbing by approximately NPR 879.55. In stark contrast, the shortest route, Kathmandu-Simara, recorded a comparatively modest increase of NPR 183. Other popular routes have also been significantly affected: Mountain Flights now incur an additional NPR 688, Surkhet NPR 690, Nepalgunj NPR 654, and Bhadrapur NPR 600. Travelers flying to Biratnagar will pay an extra NPR 478, Pokhara NPR 314, and Bhairahawa NPR 410 in fuel surcharges. Flights originating from Pokhara have also seen adjustments, with Nepalgunj fares increasing by NPR 474, Bhairahawa by NPR 259, and Bharatpur by NPR 218. These new rates are now in effect nationwide, impacting all domestic air travel. It is crucial for investors and travelers alike to understand the composition of a total air ticket price. Beyond the newly adjusted fuel surcharge, the final fare includes a base fare (which can vary between minimum and maximum rates based on demand and airline policies), an airport service charge, and Value Added Tax (VAT). Consequently, the total cost of air travel has seen a considerable jump. For instance, a flight from Kathmandu to Dhangadhi now ranges from NPR 6,000 to NPR 10,000, depending on the airline and booking class. Similarly, tickets for Bhadrapur are priced between NPR 1,700 and NPR 6,900, Biratnagar between NPR 1,300 and NPR 5,500, and Nepalgunj between NPR 1,800 and NPR 7,400. The most affordable routes remain Simara and Janakpur, with fares ranging from NPR 500-NPR 2,000 and NPR 700-NPR 2,900, respectively. Even remote destinations, beyond the major urban airports, have not been spared from these increased fuel surcharges. From an economic perspective, this increase in domestic airfares has several implications. It will undoubtedly contribute to inflationary pressures, affecting the overall cost of living and doing business in Nepal. The tourism sector, a vital pillar of the Nepali economy, could face headwinds as higher travel costs might deter both domestic and international tourists. While international travelers might absorb the increase more readily, domestic tourism, which has been a significant driver of recovery post-pandemic, could see a slowdown. Businesses reliant on air cargo or frequent employee travel will also experience elevated operational expenses. For investors, particularly those with stakes in the aviation, hospitality, and tourism industries, these developments warrant close monitoring. While airlines benefit from the automatic fuel surcharge mechanism to protect their profit margins, sustained high fuel prices could lead to reduced passenger volumes and a shift towards alternative, albeit slower, modes of transport like buses for shorter routes. The government, through NOC, faces the delicate balance of managing fuel prices, ensuring supply, and minimizing the inflationary impact on the broader economy. The frequent adjustments highlight the vulnerability of Nepal's energy sector to global market dynamics and the need for long-term strategies to ensure energy security and price stability.
CIAA Uncovers NPR 1.41 Crore Corruption Scandal in Gadawa Rural Municipality, Charges Former Chairman and Four Others
The Commission for the Investigation of Abuse of Authority (CIAA) has taken decisive action against alleged corruption within the Gadawa Rural Municipality in Dang, filing a significant corruption case against five individuals, including the then-chairman, Sahajaram Ahir. The charges, amounting to NPR 1 crore 41 lakh 50 thousand (approximately USD 106,000), stem from serious irregularities and revenue leakage identified in the contract for river-based materials during the fiscal year 2076/077. This development underscores the CIAA's ongoing commitment to upholding transparency and accountability in public administration across Nepal. According to the charge sheet filed today at the Special Court, Kathmandu, the investigation revealed a systematic failure in the execution of a contract awarded to Sagun Construction, Butwal. This contract was for the excavation and collection of essential river materials such as stones, gravel, and sand from various locations within Ward No. 1 and 2 of Gadawa Rural Municipality. The core of the accusation lies in the alleged arbitrary allowance of excavation activities without adherence to fundamental procedural requirements, including proper site inspections, accurate measurements, and the submission of technical reports. Such negligence not only violates established protocols but also creates fertile ground for illicit activities and financial malfeasance. CIAA's findings paint a concerning picture of collusion between local government officials and the private contractor. It is alleged that key personnel within the rural municipality, in concert with the contractor, deliberately granted illegal revenue exemptions, thereby causing substantial financial loss to the government. A particularly egregious aspect of the case involves an arbitrary decision to waive the second installment of a bank guarantee, totaling NPR 1 crore 41 lakh 50 thousand. This decision is highly problematic as the revenue generated from natural resources falls under the shared jurisdiction of both the Lumbini Province Government and local levels, implying that such a significant waiver would require careful consideration and adherence to established legal frameworks. The unilateral nature of this decision, as highlighted by the CIAA, points towards a blatant disregard for due process and public financial management. The five individuals named as defendants in this high-profile case are: 1. **Sahajaram Ahir**: The then-Chairman of Gadawa Rural Municipality. 2. **Lal Bahadur Yogi**: The then-Chief Administrative Officer. 3. **Shambhu Chaudhary**: The then-Revenue Branch Head (Assistant Fifth). 4. **Sahadev Khadka**: Managing Director of Sagun Construction & Engineering Pvt. Ltd. 5. **Bikas Puna**: Representative of Sagun Construction. The CIAA is seeking to recover the principal amount of NPR 1 crore 41 lakh 50 thousand from each of the five defendants, along with corresponding fines and penalties as mandated by law. Furthermore, under Section 7 of the Prevention of Corruption Act, 2059, the commission has demanded a fine equivalent to double the principal amount and imprisonment for the offense of revenue leakage. This provision reflects the severity with which the Nepali legal system views corruption that directly impacts public coffers. In addition to these penalties, the CIAA has also sought supplementary punishment for former Chairman Ahir and Chief Administrative Officer Yogi, specifically for the misuse of their public office, emphasizing the enhanced responsibility and accountability expected from individuals holding positions of power. This case serves as a stark reminder of the persistent challenges in governance and financial oversight at the local level. The proper management of natural resources, such as river-based materials, is crucial for local development and revenue generation. When such processes are compromised by corruption, it not only depletes public funds but also erodes public trust in governmental institutions and hinders the equitable distribution of resources for community welfare. Investors and the general public alike will be closely watching the proceedings of this case, as its outcome could set an important precedent for accountability in local governance and the fight against corruption in Nepal. The CIAA's proactive stance in pursuing such cases is vital for fostering a more transparent and ethical environment for both public service and private sector engagement.
ICRA Nepal Withdraws Issuer Rating of Maya Khola Hydropower at Company’s Request
ICRA Nepal Limited has withdrawn the issuer rating of Maya Khola Hydropower Company Limited (MKHC), following the withdrawal request from the company. The rating agency said the issuer rating reflects only an opinion on the general creditworthiness of the rated entity and is not specific to any particular debt instrument.
Shangrila Development Bank Sign MoU With Tranquility Spa for Discount Services
Shangrila Development Bank Limited has signed an Memorandum of Association (MoU) with Tranquility Spa to offer discounts on spa and beauty services to the bank's customers and employees. Under the agreement, bank employees will get 25% off personal spa services and 15% off personal beauty services, while customers holding accounts at the bank will get 20% off personal spa services and 15% off personal beauty services. The agreement was signed by Apurva Prasad Joshi, Senior Deputy General Manager of Shangrila Development Bank, and Nirmala Bhochhibhoya, Learning and Development Manager at Tranquility Pvt. Ltd. It will remain in effect for two years, starting from Shrawan 2083. The bank said it expects the partnership to benefit its employees and customers. Shangrila Development Bank currently serves customers nationwide through 109 branch offices and 30 ATMs, built on strong public trust and confidence. The bank said it has consistently upheld best practices in corporate governance, risk management and internal control systems, and reaffirmed its commitment to further expanding its services in the days ahead.
Mandu Hydropower Delivers Stellar Q4 Performance with Over 400% Net Profit Growth
Mandu Hydropower Limited (MANDU) has reported an exceptional financial performance for the fourth quarter of the fiscal year 2082/83, showcasing robust growth across its key financial indicators. The unaudited report highlights a remarkable surge in profitability, signaling a strong operational year for the hydropower producer and offering a compelling narrative for investors. The company posted a net profit of approximately Rs. 31.85 crore for Q4, an astounding 414.79% increase compared to Rs. 6.18 crore recorded in the same period of the previous fiscal year. This significant leap in net profit underscores Mandu Hydropower's enhanced operational efficiency and favorable market conditions, translating directly into higher returns for its shareholders. Such a substantial percentage increase is a clear indicator of the company's ability to capitalize on its assets and market opportunities within Nepal's burgeoning energy sector, particularly as demand for clean energy continues to escalate. A primary driver of this impressive profitability was the substantial growth in income from power sales. Mandu Hydropower witnessed a 288.26% rise in revenue from electricity generation, reaching Rs. 79.49 crore in Q4 2082/83, up from Rs. 20.47 crore in Q4 2081/82. This robust increase in power sales revenue suggests either higher generation capacity utilization, improved tariff rates, or a combination of both, reflecting positively on the company's core business operations. For investors, this indicates a strong demand for the company's output and efficient management of its power projects, which are critical factors for long-term sustainability in the hydropower industry. Delving deeper into the financial health, Mandu Hydropower maintained its paid-up capital at Rs. 1.36 Arba, indicating stability in its capital structure without any recent dilution from new share issuances. Concurrently, the company's Reserve Funds and Retained Earnings saw a healthy increase of 86.25%, climbing to Rs. 68.68 crore. This growth in reserves is crucial as it strengthens the company's financial foundation, providing a buffer for future investments, debt repayment, or potential dividend distributions. It reflects the company's ability to retain a significant portion of its earnings for reinvestment and growth, a positive sign for prudent financial management. The company's Property, Plant, and Equipment (PPE) also registered a 73.41% incline, reaching Rs. 6.50 lakhs. While this figure might seem modest in absolute terms for a hydropower company, it could represent ongoing maintenance, minor upgrades, or revaluation adjustments, ensuring the operational longevity and efficiency of its assets. Loans and Borrowing increased by 9.59% to Rs. 2.40 Arba, a typical trend for capital-intensive infrastructure projects like hydropower, where debt financing plays a crucial role in project development and expansion. Managing this debt effectively while generating strong revenues is key to long-term sustainability and mitigating financial risks. From a shareholder's perspective, the Earnings Per Share (EPS) saw a dramatic improvement, mirroring the net profit growth. EPS surged by 414.79% to Rs. 23.36 in Q4 2082/83, significantly up from Rs. 4.54 in the previous fiscal year. This substantial increase in EPS directly translates to higher earnings attributable to each outstanding share, making the stock more attractive to investors seeking growth. Furthermore, the Net Worth per Share also improved by 16.71%, reaching Rs. 162.88 from Rs. 139.55, indicating an increase in the intrinsic value of the company's equity and a stronger balance sheet. At the end of the quarter, Mandu Hydropower's Price-to-Earnings (PE) ratio stood at 34.25 times, with the market price per share at Rs. 800. While a PE ratio of 34.25 suggests that the market has high expectations for future growth, it is crucial for investors to compare this against industry averages and the company's growth trajectory. The strong EPS growth could justify a higher PE multiple, reflecting investor confidence in the company's future earnings potential and its position as a growth-oriented stock within the NEPSE market. Overall, Mandu Hydropower's Q4 financial report paints a picture of robust growth and operational success. The significant increases in net profit, power sales revenue, and EPS highlight the company's strong position within Nepal's hydropower sector. Investors will likely view these results favorably, anticipating continued positive performance as the demand for clean energy in Nepal continues to rise and the company further optimizes its operations and expands its capacity.
Prime Minister Convenes Crucial Meeting with RSP Lawmakers on Sudurpaschim Development
In a significant move underscoring the federal government's commitment to regional development and addressing provincial concerns, Prime Minister Pushpa Kamal Dahal 'Prachanda' recently convened a pivotal meeting with lawmakers from the ruling Rastriya Swatantra Party (RSP) representing the Sudurpaschim Province. The high-level discussion, held at the esteemed Office of the Prime Minister and Council of Ministers in Singha Durbar, focused intently on the contemporary political landscape and pressing development priorities within the Sudurpaschim region. This meeting highlights the intricate dynamics of Nepal's federal structure, where direct engagement between the central leadership and provincial representatives is crucial for effective governance and equitable resource distribution. The Sudurpaschim Province, situated in the far-western part of Nepal, holds immense strategic importance due to its geographical location, natural resources, and cultural heritage. However, it has historically faced challenges related to infrastructure development, economic opportunities, and access to essential services. Therefore, discussions centered on its development priorities are not merely administrative but hold substantial implications for the region's socio-economic upliftment and, by extension, for the national economy. The Rastriya Swatantra Party (RSP), a relatively new but influential force in Nepali politics, plays a vital role in the current coalition government. Its lawmakers, directly elected from various constituencies within Sudurpaschim, bring firsthand knowledge of the local issues and aspirations. Their presence at such a high-level meeting ensures that the voices and needs of the province are directly communicated to the nation's top executive. The lawmakers present included Tara Prasad Joshi, Khemraj Koirala, Harimohan Bhandari, Janak Singh Dhami, Gyanendra Singh Mahata, Jagat Joshi, Komal Gyawali, and KP Khanal, all of whom are key representatives from the region. The agenda of the meeting, encompassing "contemporary political developments and development priorities," is broad yet critical. It likely delved into various sectors such as infrastructure projects (roads, bridges, energy), agricultural modernization, tourism promotion, industrial development, and improvements in social sectors like education and healthcare. For investors, such focused governmental attention on a specific province can signal potential opportunities. A stable political environment, coupled with a clear development agenda, can attract both domestic and foreign investment into sectors like hydropower, agro-processing, hospitality, and mining, which are abundant in Sudurpaschim. Furthermore, these discussions are integral to strengthening the principles of federalism in Nepal. By actively engaging with provincial representatives, the Prime Minister's office demonstrates a commitment to decentralized governance and inclusive development. This approach aims to minimize regional disparities and ensure that the benefits of national growth are distributed more evenly across all provinces. The outcomes of such meetings often translate into policy directives, budget allocations, and the initiation of specific projects, which collectively contribute to enhancing the overall investment climate and fostering sustainable economic growth in the targeted region. In conclusion, the meeting between Prime Minister Prachanda and RSP lawmakers from Sudurpaschim Province is a testament to the government's proactive stance on regional development. It underscores the importance of collaborative efforts between central and provincial authorities to address local challenges and unlock the full potential of Nepal's diverse regions. For investors monitoring Nepal's economic landscape, such engagements are crucial indicators of future policy directions and potential growth areas, particularly in provinces poised for significant development initiatives.
Nabil Bank Unveils Dedicated Education Hub to Streamline Overseas Study Financing and Advisory Services
Nabil Bank Limited, a leading financial institution in Nepal, has strategically launched its pioneering Nabil Bank Education Hub in Putalisadak, Kathmandu. This innovative center is specifically designed to cater to the burgeoning demand for comprehensive financial and advisory services among Nepali students aspiring for higher education abroad. The initiative underscores Nabil Bank's commitment to fostering educational advancement and national development. The Education Hub was officially inaugurated on Monday through a joint ceremony attended by distinguished guests, including the Australian Ambassador to Nepal, Simon Ernst, alongside Nabil Bank's Chairman, Nirvana Kumar Chaudhary, and CEO, Manoj Kumar Gyawali. The presence of the bank's board members and senior management at the event highlighted the strategic importance placed on this new venture. This dedicated facility is meticulously structured to serve students, their parents, and educational consultancies by offering an integrated suite of banking solutions and expert advisory services. The hub aims to provide seamless support throughout the entire overseas education journey, from the initial stages of admission planning and securing education financing to facilitating foreign exchange services and managing post-graduation loan repayments. This holistic approach is a significant departure from traditional banking services, offering a truly 'one-stop' solution. Chairman Chaudhary articulated that this initiative is a tangible reflection of the bank's deep-rooted commitment to investing in education, recognizing it as a pivotal catalyst for national progress and human capital development. He further revealed Nabil Bank's ambitious plans to integrate and expand these specialized Education Hub counters across its extensive branch network in the foreseeable future, ensuring wider accessibility for students nationwide. CEO Gyawali emphasized the groundbreaking nature of the Nabil Bank Education Hub, describing it as the first of its kind within Nepal's banking sector. He highlighted its unique proposition as a unified platform that expertly combines education financing, foreign exchange services, and meticulous financial planning under one roof. A standout feature of the bank's education loan offerings is the provision of a moratorium facility, which allows students the crucial flexibility to defer loan repayments during their study period. This feature significantly alleviates the immediate financial burden on students and their families, enabling them to focus on their academic pursuits without undue stress. For investors, this move by Nabil Bank signifies a strategic expansion into a high-growth market segment. The increasing number of Nepali students pursuing international education represents a substantial opportunity for financial institutions. By offering tailored services, Nabil Bank is not only capturing a significant market share but also building long-term relationships with a demographic that will likely become future high-net-worth individuals and contribute to remittance inflows. This proactive approach positions Nabil Bank as an innovative leader, enhancing its brand reputation and potentially driving sustained growth in its loan portfolio and fee-based income.
Nepal's Electricity Regulator Simplifies Bonus Share Approval for Power Companies
The Electricity Regulatory Commission (ERC) of Nepal has announced a significant policy amendment aimed at streamlining the process for electricity companies, including the burgeoning hydropower sector, to issue bonus shares. This progressive move, enacted through the 311th meeting of the Commission, revises the "Directive on Pre-approval and Regulation of Public Issuance of Shares of Electricity Companies, 2078," effectively replacing a previously cumbersome and time-consuming procedure with a more efficient framework. This change is poised to have a considerable positive impact on the operational agility of power companies and potentially enhance investor sentiment in the Nepalese stock market. Previously, electricity companies seeking to distribute bonus shares faced a dual-approval mandate if the issuance resulted in a share structure alteration exceeding 5%. Under the former regulations, companies were compelled to secure and submit explicit decisions from *both* their Board of Directors *and* their General Meeting to the ERC for pre-approval. This requirement often led to prolonged administrative delays, adding layers of bureaucracy that hindered timely corporate actions and capital management strategies. The necessity of convening a General Meeting, which typically occurs annually, specifically for this purpose, or arranging extraordinary general meetings, often created bottlenecks in the bonus share distribution timeline. The newly introduced amendment simplifies this critical process by replacing the conjunction "and" with "or" in the relevant regulatory texts. Specifically, the revised directive now stipulates that companies only need to present a decision from *either* their Board of Directors *or* their General Meeting to the ERC for pre-approval, provided the bonus share distribution leads to a share structure change of more than 5%. For changes below this 5% threshold, the existing provision remains, requiring only an informational notification to the Commission, without the need for prior approval. This subtle yet impactful linguistic change in various schedules of the "Electricity Purchase and Sale and Terms of Compliance by Permitted Persons Regulations, 2076" significantly reduces the administrative burden on companies. The implications of this regulatory simplification are far-reaching. For the numerous hydropower and other electricity-generating companies listed on the Nepal Stock Exchange (NEPSE), this means a faster and more agile mechanism for returning profits to shareholders in the form of bonus shares. Expedited bonus share distribution can lead to improved market liquidity for these scrips, as new shares become available for trading sooner. This can also positively influence investor confidence, signaling a more business-friendly regulatory environment and potentially making the energy sector a more attractive investment avenue. Investors often view bonus shares as a positive indicator of a company's financial health and growth prospects, and a quicker distribution process ensures that these benefits are realized without undue delay. The Electricity Regulatory Commission, as the apex body overseeing Nepal's power sector, plays a crucial role in balancing consumer interests, industry development, and regulatory compliance. This latest amendment underscores the ERC's commitment to fostering a more dynamic and efficient energy market. By removing unnecessary bureaucratic hurdles, the Commission is facilitating smoother corporate governance and capital allocation within a sector that is vital for Nepal's economic development. The decision, formally announced on Shrawan 18 (corresponding to August 3), is already in effect, marking an immediate shift in the regulatory landscape. In conclusion, the ERC's move to simplify the bonus share approval process for electricity companies represents a commendable step towards enhancing regulatory efficiency and promoting ease of doing business in Nepal's energy sector. This change is expected to not only accelerate the distribution of bonus shares but also contribute to a more vibrant and responsive stock market for power sector equities, ultimately benefiting both companies and investors alike. It reflects a broader governmental push towards modernizing regulatory frameworks to support economic growth and investor participation.
Nepal's Bi-Weekly Salary Initiative Faces Administrative Chaos, Leaving Government Employees Unpaid
Nepal's ambitious new financial administration experiment, the "15/15 day salary" or bi-weekly payment plan, championed by Finance Minister Dr. Swarnim Wagle, has encountered significant hurdles right from its inception. What was touted as a progressive move to boost employee morale and ensure balanced liquidity in the market has instead plunged the government's financial system into disarray. As the first month of the new fiscal year, Shrawan, draws to a close, countless government employees find themselves without their salaries, highlighting a critical disconnect between political aspirations and administrative realities. The bi-weekly payment scheme, designed to disburse salaries twice a month, was introduced with the commencement of the fiscal year 2083/84. While the concept sounded appealing on paper, its practical implementation has proven to be fraught with challenges. Employees, who were initially promised their first installment by Shrawan 15, are now facing the end of the month without even their traditional monthly pay, sparking considerable concern and frustration within the Ministry of Finance itself. This administrative bottleneck has effectively rendered the Minister's initiative a symbol of inefficiency. At the heart of this confusion lies the "Computerized Government Accounting System" (SIGAS). According to Om Prasad Rijal, Information Officer at the Office of the Auditor General, the primary issue stems from the Ministry of Finance's failure to timely provide the approved salary scales and grade rates for the new fiscal year. Until the Ministry of Finance updates the SIGAS system with these crucial details, no government office can generate payment orders, effectively paralyzing salary disbursements across the board. Rijal emphasized, "Payment is not possible without new data entry into the system," underscoring a significant lapse in technical preparedness preceding a major policy decision. Beyond the technical glitches, the initiative also presents substantial psychological and administrative burdens. Nepal's socio-cultural fabric and household budgeting are deeply entrenched in a monthly expenditure cycle. Shifting to a bi-weekly payment system without adequate preparation disrupts this established rhythm, causing financial strain for employees who rely on timely income for their monthly expenses. Furthermore, Nepal's accounting system is not yet fully automated. The task of preparing pay slips, deducting income tax, and calculating contributions to the Citizen Investment Trust (CIT) and Provident Fund twice a month effectively doubles the workload for accounting staff. This increased administrative overhead, without a corresponding improvement in efficiency or output, raises questions about the practicality and cost-effectiveness of the new system. Critics argue that the decision was made without a thorough assessment of real-time data and the existing system's capacity. In response to the growing concerns, Amrit Lamsal, spokesperson for the Ministry of Finance, acknowledged the delays, attributing them to pending technical preparations. He assured the public that data collection from all relevant bodies is underway and the system would be operational soon. However, internal sources within the Ministry suggest that the Minister's perceived desire for an "impressive" public announcement may have overshadowed the necessary groundwork. One civil servant lamented, "Earlier, salaries would arrive reliably at the end of the month. Now, with the allure of bi-weekly payments, not receiving money for an entire month has made managing household expenses incredibly difficult. This isn't an improvement; it's an added burden." The Finance Minister's rationale for the bi-weekly payment system was to enhance cash flow in the market. However, banking sector experts caution that such a move might primarily escalate administrative costs. Processing thousands of salary transactions twice a month would place an additional strain on banking systems, particularly for state-owned banks, potentially leading to increased operational complexities and costs. Any fundamental change to a systemic process necessitates meticulous prior preparation, a robust legal framework, and comprehensive consultation with stakeholders. It appears that these foundational principles were overlooked when the bi-weekly salary concept was introduced. The current month-long uncertainty unequivocally demonstrates that administrative efficacy cannot be achieved through political declarations alone; it demands a strong technical foundation and a pragmatic, well-thought-out approach. If the Ministry of Finance fails to resolve this impasse swiftly, this initial "populist" project could cast a significant shadow over the Finance Minister's competence and leadership. The coming days will reveal how the Ministry intends to rectify this chaotic situation. For now, however, the empty hands of government employees serve as a stark testament to the Ministry's current administrative shortcomings.
Nepal Rastra Bank Board to Feature Seven Members, Including a Woman, Amidst Key Legislative Amendments
In a significant development for Nepal's financial sector governance, the Nepal Rastra Bank (NRB) is set to restructure its Board of Directors to comprise seven members, a decision that notably includes the mandatory appointment of at least one woman. This crucial agreement was reached during a detailed discussion held on Tuesday within the Finance Committee under the House of Representatives, marking a pivotal step in the ongoing legislative process to amend the Nepal Rastra Bank Act, 2058. The central bank, Nepal Rastra Bank, plays an indispensable role in maintaining monetary and financial stability, regulating the banking and financial institutions, and formulating monetary policy to foster sustainable economic growth in the country. The composition and effectiveness of its Board of Directors are paramount to fulfilling these mandates, as the board is responsible for guiding the bank's strategic direction, overseeing its operations, and ensuring adherence to its core objectives. Initially, during the clause-by-clause deliberations on the proposed amendments to the NRB Act, a nine-member board had been put forth for consideration. However, after extensive discussions and careful deliberation among the committee members, a consensus was ultimately reached to revert to the previous structure of a seven-member committee. This decision underscores a preference for a more streamlined and agile board, potentially reflecting a balance between diverse representation and efficient decision-making processes. The inclusion of a woman on the Board of Directors is a particularly noteworthy aspect of this amendment. It signifies a progressive move towards enhancing gender diversity within the highest echelons of Nepal's financial regulatory body. Such representation is increasingly recognized globally as crucial for bringing varied perspectives, fostering more inclusive policy-making, and improving overall governance and oversight. A diverse board can better understand and address the needs of a broader segment of the population, potentially leading to more equitable financial policies and services. This legislative amendment to the Nepal Rastra Bank Act, 2058, is a critical undertaking that aims to modernize the central bank's operational framework and governance structure to meet contemporary economic challenges and international best practices. The Finance Committee's role in meticulously reviewing and refining such a foundational act ensures that the central bank remains robust, independent, and capable of effectively steering the nation's financial landscape. For investors and market participants, the stability and credibility of the central bank are key indicators of a healthy economic environment. A well-structured and competently led Board of Directors at the NRB instills confidence in the market, signaling a commitment to sound financial management and regulatory oversight. The finalization of these amendments, particularly concerning the board's composition, will be closely watched as it sets the stage for the future direction of Nepal's monetary policy and financial sector development.
Deadline Extended for "7% Laxmi Sunrise Debenture 2092"; Issue to Close on Shrawan 28
Laxmi Sunrise Bank Limited has extended the deadline for issuing 30,00,000 units of "7% Laxmi Sunrise Debenture 2092" to the general public and institutions until 28th Shrawan, 2083. The debenture, with a maturity period of 10 years and a coupon rate of 7%, was open for application from the 14th Shrawan, 2083. 30,00,000 units will be issued at a par value of Rs. 1000 per unit. Out of the total units being issued, 60%, i.e., 18 lakh units, of the total issue will be subscribed via private placement, while the remaining 12 lakh units worth Rs. 1.22 Crore will be open for public issue. According to CDSC, 7,390 applicants have applied for 10,55,426 units worth Rs. 1.05 arba so far. This data is as of yesterday. Machapuchhre Capital Limited is the issue manager. Investors can apply for a minimum of 25 units and a maximum of the total issued units.
Finance Minister Wagle Convenes Crucial Meeting with Top Bank CEOs to Chart Economic Reforms
In a pivotal move aimed at bolstering Nepal's economic landscape, Finance Minister Dr. Swarnim Wagle is scheduled to hold a high-level meeting today with the chief executive officers (CEOs) of the nation's 20 major commercial banks. This crucial gathering, set for 3:00 PM at the Ministry of Finance, underscores the government's proactive approach to addressing current economic challenges and fostering sustainable growth. The meeting will bring together the heads of all commercial banks recognized by Nepal Rastra Bank, the country's central bank, signifying a unified effort to review the state of the financial market and deliberate on key economic reforms. The primary objective of this extensive discussion is to meticulously evaluate the practical implementation of the economic reform measures that were announced in the national budget. Finance Minister Wagle aims not only to assess the prevailing financial market conditions but also to clearly outline the active role and indispensable cooperation required from these leading financial institutions to effectively drive these reforms forward. This high-stakes dialogue comes at a critical juncture for the Nepalese economy. While the nation continues its recovery trajectory from various global and domestic shocks, challenges such as maintaining adequate liquidity, managing interest rate fluctuations, stimulating credit growth in productive sectors, and controlling inflation remain paramount. The commercial banking sector, as the backbone of the financial system, plays an instrumental role in translating government policies into tangible economic outcomes. Their lending practices, deposit mobilization, and overall financial health directly influence investment, consumption, and employment levels across the country. Investors will be keenly watching for any signals or directives emerging from this meeting. A collaborative and coherent strategy between the Ministry of Finance and the commercial banks is essential for instilling confidence in the market. Discussions are expected to delve into various facets, including strategies to enhance financial stability, promote inclusive economic growth, and potentially explore avenues for increasing foreign direct investment through a more robust and supportive financial ecosystem. The government's commitment to creating an enabling environment for businesses and investors hinges significantly on the effective functioning and strategic alignment of its financial institutions. Furthermore, the meeting is an opportunity for the Finance Minister to gain direct insights from the banking sector regarding ground-level realities, operational challenges, and potential policy adjustments that could accelerate economic recovery and development. Such direct engagement is vital for crafting policies that are not only theoretically sound but also practically implementable and impactful. The banking community, in turn, will have the platform to voice their perspectives, concerns, and suggestions, ensuring that the reform agenda is comprehensive and mutually beneficial. Ultimately, the success of Nepal's economic reforms relies heavily on the synergy between fiscal policy, monetary policy, and the operational efficiency of the financial sector. This meeting between Dr. Wagle and the commercial bank CEOs is a testament to the government's dedication to forging such synergy, aiming to create a more resilient, dynamic, and investor-friendly economic environment for Nepal. The outcomes of this discussion could set the tone for the financial market in the coming months, influencing investment decisions and overall economic sentiment.
Siddhartha Equity Fund 2 Officially Listed on NEPSE, Trading Set to Commence
The Nepal Stock Exchange (NEPSE) is poised to welcome a new and significant trading instrument as "Siddhartha Equity Fund 2 (SEF2)" has officially completed its listing process. A formal agreement was meticulously signed today between representatives of Siddhartha Capital Limited (SIDCL), the esteemed fund manager, and NEPSE, thereby paving the way for this closed-end mutual fund to commence trading on the secondary market. This pivotal development marks a noteworthy addition to the diverse investment avenues available to Nepalese investors, offering yet another compelling opportunity for portfolio diversification within the dynamic domestic capital market. A substantial total of 125,000,000 units of Siddhartha Equity Fund 2 have been officially listed on NEPSE, with each unit carrying a par value of Rs. 10. The initial public offering (IPO) for these units was successfully conducted from 21st Baisakh to 28th Baisakh, 2082, attracting considerable interest and participation from the general public. The successful conclusion of this listing agreement now signifies that these units will soon be readily available for secondary market trading, with market participants eagerly anticipating the commencement of trading as early as Tuesday. Investors will be able to conveniently identify and trade these units under the distinct and easily recognizable symbol 'SEF2' on the NEPSE trading platform. Siddhartha Equity Fund 2 is meticulously structured as a closed-end fund, which fundamentally means it issues a fixed number of shares through an initial public offering, and these shares are subsequently traded on a stock exchange like NEPSE. Unlike open-end funds, which continuously issue and redeem shares, closed-end funds provide liquidity primarily through secondary market trading, allowing investors the flexibility to buy and sell units based on prevailing market demand and supply dynamics. This particular structure offers a stable capital base for the fund manager, Siddhartha Capital Limited, enabling them to implement their long-term investment strategy without the constant pressure of redemptions, which can potentially lead to more consistent and robust long-term performance. Siddhartha Capital Limited, a well-established and respected name within Nepal's asset management industry, will be responsible for the professional management of SEF2. Their proven expertise and deep understanding of navigating the intricacies of the Nepalese equity market will be instrumental in achieving the fund's overarching investment objectives. These objectives typically involve investing in a carefully selected and diversified portfolio of publicly traded equities with the aim of generating both capital appreciation and regular income for its unit holders. The successful listing of SEF2 further underscores the growing maturity and sophistication of Nepal's mutual fund industry and its increasingly vital role in mobilizing domestic capital for economic development, all while providing professional and accessible investment management services to a broad base of investors. For individual and institutional investors alike, the listing of SEF2 presents an attractive opportunity to gain exposure to a professionally managed equity portfolio without the complexities and time commitment involved in directly selecting individual stocks. This can be particularly appealing to those investors who are actively seeking enhanced diversification, expert professional oversight, and potentially a lower risk profile compared to direct stock investments, especially within a dynamic and evolving market environment such as NEPSE. The inherent ability to trade these units on the secondary market ensures a degree of liquidity, empowering investors to enter or exit their positions as per their individual investment horizons and evolving market outlook. As the Nepalese capital market continues its trajectory of growth and evolution, the introduction of such well-structured funds plays a crucial role in deepening market participation and offering increasingly sophisticated investment products to a wider and more informed audience. The imminent commencement of trading for SEF2 is eagerly anticipated by all market participants, promising to add another layer of depth, opportunity, and vibrancy to the NEPSE ecosystem.
Shine Resunga Reports 82.97% Rise in Net Profit for Q4; Operating Profit Reaches Rs. 1.73 Arba
Shine Resunga Development Bank Limited (SHINE) has reported a strong financial performance in the fourth quarter of FY 2082/83, posting a net profit of Rs. 1.18 Arba, an impressive 82.97% increase from Rs. 64.56 crore recorded in the corresponding period of the previous fiscal year. The substantial growth in profitability was primarily supported by higher net interest income, lower funding costs, and improved operational efficiency. The bank's net interest income increased by 6.90% year-on-year to Rs. 2.82 Arba, compared to Rs. 2.64 Arba in the previous year. Total deposits rose by 8.48% to Rs. 77.85 Arba, while loans and advances expanded by 11.18% to Rs. 63.26 Arba. During the review period, the bank also reported a loan and advances reversal of Rs. 20.79 crore, contributing positively to its earnings. Operating profit nearly doubled, reaching Rs. 1.73 Arba from Rs. 91.11 crore a year earlier. Retained earnings increased to Rs. 84.64 crore, while total reserves grew to Rs. 2.14 Arba. The bank further strengthened its capital position, with the capital adequacy ratio improving to 13.70% from 12.55% in the previous fiscal year. Meanwhile, the cost of funds declined to 3.68% from 4.85%, although the non-performing loan (NPL) ratio stood at 4.93%. Reflecting the stronger earnings, earnings per share (EPS) surged to Rs. 23.52 from Rs. 13.24 in the previous year, while net worth per share improved by 5.31% to Rs. 159.48. Based on the quarter-end market price of Rs. 415 per share, the bank's price-to-earnings (P/E) ratio stood at 17.64 times. Report: Major Financial Highlights: Particulars (In Rs '000) Shine Resunga Development Bank Limited Q4 2082/83 Q4 2081/82 Difference Paid Up Capital 5,021,972.73 4,875,701.68 3.00% Retained Earnings 846,498.35 668,505.49 26.63% Reserves 2,140,821.45 1,839,501.37 16.38% Deposit 77,852,662.14 71,767,128.45 8.48% Loans & Advances 63,267,778.53 56,907,122.14 11.18% Net Interest Income 2,826,703.20 2,644,359.06 6.90% Personnel Expenses 804,253.88 714,313.81 12.59% Impairment Charges 207,956.56 950,401.15 -78.12% Operating Profit 1,737,873.36 911,115.55 90.74% Net Profit 1,181,279.44 645,627.99 82.97% Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 846,498.35 668,505.49 26.63% Capital Adequacy (%) 13.70 12.55 9.16% NPL (%) 4.93 4.27 Cost of Fund (%) 3.68 4.85 -24.12% Annualized EPS (In Rs.) 23.52 13.24 77.64% Net Worth per Share (In Rs.) 159.48 151.44 5.31% Qtr end PE Ratio (times) 17.64 - - Qtr End Market Price 415 - -
Central Bank Digital Currency (CBDC) Set to Become Legal Money in Nepal
Nepal is taking a major step toward recognizing digital money issued by its central bank, while maintaining a strict stance against private cryptocurrencies. A proposed amendment bill to the Nepal Rastra Bank Act, 2058 seeks to give official legal status to Central Bank Digital Currency (CBDC), classifying it alongside traditional paper notes and physical coins. The scope and legal boundaries of digital money were discussed during a clause-by-clause review of the bill by the Finance Committee of the House of Representatives. Officials clarified that the term "digital currency" in the new law applies strictly to money issued, regulated, and backed by Nepal Rastra Bank (NRB), the nation's central bank. In contrast, privately issued digital assets, such as cryptocurrencies and virtual currencies, will not be recognized as official currency or legal money. Addressing lawmakers, NRB Executive Director Deergha Rawal explained that incorporating digital currency into the Act specifically enables the launch and management of a central bank digital currency. He noted that private cryptocurrencies do not belong in the central banking law, as regulatory concerns surrounding them are already covered under anti-money laundering legislation. Finance Secretary Dr. Ghanashyam Upadhyay emphasized the distinction between digital currency and digital banking, advising that they should not be conflated. Because digital currency naturally functions within its own operational framework, he noted that adding a separate operational system definition is unnecessary. To ensure clarity, he suggested defining digital currency simply as any digital money issued or designated by the central bank, which maintains sole authority over official currency. Under the proposed amendment to Section 2 of the Act, the definition of "currency" will be officially expanded. While the current law recognizes only paper banknotes and metal coins, the updated provision will define currency to include bank notes in active circulation, coins, and digital currency issued directly by the central bank. Proposers of the amendment further recommended explicit language stating that any private virtual currency or cryptocurrency remains strictly excluded from being considered lawful money under the Act.
Bonus Shares of Nepal Life Insurance Company Listed in NEPSE
45,14,381.60 unit bonus shares of Nepal Life Insurance Co. Ltd. (NLIC) have been listed in NEPSE. The company convened its 26th AGM on 19th Poush, 2082, and endorsed a 21.05% dividend for FY 2081/82. The company decided to distribute a 5% bonus shares and 16.05% cash dividend (for tax purposes) . The same shares are now listed in NEPSE. As of writing, NLIC has an LTP of Rs. 759.90 .