Latest NEPSE News & Share Market Updates
Nepal Rastra Bank Penalizes Three Financial Institutions Over Regulatory Breaches
Nepal Rastra Bank (NRB), the country’s central bank, has taken disciplinary action against three financial institutions, Narayani Development Bank, Saptakoshi Development Bank, and Reliance Finance for breaking regulatory rules during the fourth quarter of the fiscal year 2082/83. Narayani Development Bank ran into trouble over its lending practices. When NRB previously removed the bank from its list of troubled institutions, it set a strict condition: total loans and credit facilities to any single customer, business, or connected group of clients could not exceed 10% of the bank's core capital. An investigation revealed that the bank violated this threshold during the 2024/25 fiscal year (FY 2081/82). As a result, the central bank issued an official caution to Bishnu Regmi, who served as Chief Executive Officer during that period, instructing him to ensure such errors do not happen again. Saptakoshi Development Bank was called out for severe internal management failures following a routine inspection based on its financial statements from mid-October 2025 (Ashwin 2082). Inspectors discovered missing cash in the bank’s vault along with unauthorized employee access to customer accounts. The central bank noted that even after learning about these breaches, Saptakoshi's management failed to conduct a thorough investigation, punish those responsible, or update its internal control policies to prevent future abuse. The institution was issued a formal warning to fix its operational oversight. Reliance Finance faced a financial penalty for failing to maintain its required cash reserve levels between February 22, 2026, and April 18, 2026 (Phagun 10, 2082 to Baishakh 5, 2083). Because the company fell short of keeping the mandated amount of liquid cash on hand, the central bank fined it NPR 2,924.48 in accordance with current financial regulations.
Mahalaxmi Bikas Bank Secures Prestigious 'Rising Star – Growth' Award from ICC India, Highlighting Digital Innovation and Strategic Expansion
Mahalaxmi Bikas Bank Limited, a prominent name in Nepal's development banking sector, has once again garnered international acclaim, receiving the prestigious ‘Rising Star – Growth’ award from the Indian Chamber of Commerce (ICC), Kolkata. The accolade was presented at the 4th Emerging Asia Banking Conclave & Awards, a significant regional event held in New Delhi on July 24, 2026. This marks a remarkable achievement for the bank, as it is its second consecutive recognition from the ICC, following last year's 'Asset Quality' award, underscoring a consistent trajectory of excellence and strategic advancement. The 'Rising Star – Growth' award is a testament to Mahalaxmi Bikas Bank's robust performance and forward-thinking strategies across several critical areas of modern banking. The Indian Chamber of Commerce, a respected institution fostering economic growth and collaboration in the region, recognized the bank for its outstanding achievements in expanding its digital banking services, a crucial pivot in today's evolving financial landscape. This includes the introduction of innovative financial products designed to meet the diverse needs of its growing customer base, alongside a significant expansion of its overall business footprint. Furthermore, the award acknowledges the bank's unwavering commitment to promoting financial inclusion, a vital objective for Nepal's socio-economic development, and its steadfast adoption of responsible banking practices, which are fundamental for long-term sustainability and trust. In an era where digital transformation is paramount, Mahalaxmi Bikas Bank has demonstrated a clear vision. The recent launch of its Digital Hub, uniquely integrated with a Coffee Lounge in Gyaneshwor, Kathmandu, exemplifies this commitment. This innovative initiative is not merely about offering modern banking services; it's about creating a convenient, customer-centric experience that blends technology with comfort, making banking more accessible and enjoyable. Such strategic investments in digital infrastructure and customer experience are pivotal in attracting and retaining a tech-savvy clientele while simultaneously streamlining operations and enhancing efficiency. The consecutive nature of these awards speaks volumes about Mahalaxmi Bikas Bank's holistic approach to banking. The 'Asset Quality' award received last year highlighted the bank's prudent risk management and sound financial health, a cornerstone for any stable financial institution. This year's 'Rising Star – Growth' award complements that by recognizing its dynamic expansion and innovation. For investors, this dual recognition signals a bank that is not only financially sound and well-managed but also aggressively pursuing growth opportunities through strategic innovation and market penetration. It suggests a robust foundation coupled with a proactive strategy for future expansion, positioning Mahalaxmi Bikas Bank as a compelling entity within Nepal's competitive banking sector. The bank's dedication to financial inclusion is particularly noteworthy in the Nepalese context, where a significant portion of the population still lacks access to formal financial services. By extending its reach and offering tailored products, Mahalaxmi Bikas Bank is playing a crucial role in empowering communities and fostering broader economic participation. This commitment to social responsibility, combined with its focus on technological advancement and business growth, paints a picture of a well-rounded institution poised for sustained success. As the bank continues to innovate and expand, its strategic direction appears firmly aligned with both commercial imperatives and national development goals, making it an entity to watch in the regional financial market.
Dinesh Bahadur Amatya Appointed Acting CEO of Himalayan Life Insurance, Poised to Lead Strategic Growth
The Nepali insurance sector, a crucial pillar of the nation's financial landscape, is witnessing a significant leadership transition as Himalayan Life Insurance Limited announces the appointment of Mr. Dinesh Bahadur Amatya as its Acting Chief Executive Officer. This pivotal decision, made during the company's 75th board of directors meeting, entrusts Mr. Amatya with the top executive role, effective from Ashad 11th, until further notice. The move comes at a dynamic period for Himalayan Life Insurance, a prominent entity formed from the merger of three established insurers: Prime Life Insurance, Gurans Life Insurance, and Union Life Insurance. Mr. Amatya's appointment is particularly noteworthy given his extensive experience and recent career trajectory within the competitive insurance industry. He recently resigned from his position as Deputy Chief Executive Officer (DCEO) at IME Life Insurance, a move that garnered attention across the financial community. Prior to his tenure at IME Life, Mr. Amatya had already served as a DCEO at Himalayan Life Insurance itself, providing him with an intimate understanding of the company's operations, culture, and strategic objectives. This prior experience is expected to facilitate a seamless transition into his new, elevated role, ensuring continuity and stability during this interim leadership period. The role of an Acting CEO is critical, especially in a company of Himalayan Life Insurance's stature. It demands not only operational oversight but also strategic vision to navigate market challenges, capitalize on growth opportunities, and maintain robust regulatory compliance. Mr. Amatya will be responsible for steering the company's day-to-day operations, implementing board-approved strategies, and ensuring the company remains aligned with the directives of the Nepal Insurance Authority (NIA). His immediate priorities will likely include strengthening the company's market position, enhancing customer service, optimizing operational efficiencies, and fostering a culture of innovation. Himalayan Life Insurance, born out of a landmark merger, holds significant potential within Nepal's burgeoning insurance market. The merger itself was aimed at creating a stronger, more resilient entity capable of competing effectively and offering a broader range of products and services. With Mr. Amatya at the helm, even in an acting capacity, the company is expected to continue its trajectory towards consolidating its market share and delivering value to its policyholders and shareholders. His leadership will be instrumental in integrating the strengths of the merged entities, streamlining processes, and leveraging synergies to achieve sustainable growth. The Nepali insurance landscape is characterized by increasing competition, evolving regulatory frameworks, and a growing awareness among the populace regarding the importance of life insurance. In this environment, strong and experienced leadership is paramount. Mr. Amatya's proven track record in various leadership roles within the sector suggests he possesses the strategic acumen and operational expertise required to guide Himalayan Life Insurance through its next phase of development. Investors and stakeholders will be closely watching his initiatives, anticipating moves that will enhance the company's financial performance and solidify its standing as a leader in the Nepali insurance market. His appointment underscores the company's commitment to robust corporate governance and its proactive approach to leadership succession, ensuring that the organization remains well-equipped to meet future challenges and opportunities. This strategic leadership change is expected to instill confidence among investors and policyholders alike, signaling a renewed focus on growth and stability for Himalayan Life Insurance Limited. The financial community will keenly observe the strategic direction Mr. Amatya will chart for the company, particularly concerning product innovation, market expansion, and digital transformation initiatives, all of which are vital for long-term success in the modern insurance industry.
Cooperative Victims Intensify Protests, Demand Equal Treatment and Urgent Return of Savings
Kathmandu witnessed a significant demonstration today as hundreds of cooperative victims gathered at Maitighar Mandala, a prominent protest site, to demand the immediate and equitable return of their hard-earned savings. Organized under the banner of the Cooperative Victim Depositors Federation, the protest highlights the escalating frustration among those who have lost substantial sums due to widespread mismanagement and alleged fraud within the cooperative sector. Nepal's cooperative sector, once envisioned as a pillar of community-based financial empowerment, has been grappling with a severe crisis for several years. Numerous cooperatives have defaulted on their obligations, leaving thousands of depositors in financial distress. This systemic issue has not only eroded public trust in these institutions but has also posed a significant challenge to the nation's financial stability. The government has been under immense pressure to intervene, with various committees and task forces formed, yet a comprehensive and effective solution remains elusive for many victims. A central point of contention raised by the protesting victims is the government's perceived strategy of categorizing depositors into "small" and "large" groups. According to the Federation, this approach is a deliberate attempt to divide the victim community and weaken their collective movement. Kushalav KC, President of the Cooperative Victim Depositors Federation, vehemently criticized this policy, stating, "The government is trying to split us by distinguishing between small and large depositors, which only serves to undermine our unity and dilute our demands. All victims are equal, regardless of the size of their deposits, and deserve equal treatment and justice." He further emphasized that despite repeated appeals and reminders to the government, their pleas have largely gone unheard, forcing them back onto the streets. The Federation's primary demand is the swift and unconditional return of all deposited savings. KC specifically urged the government to prioritize the restitution of funds to those actively participating in the protests, signaling a growing impatience with the slow pace of resolution. He issued a stern warning, indicating that if their demands are not addressed promptly, the movement would escalate into a more powerful and widespread agitation. The protesters also highlighted the government's current strategy of recovering loans from large debtors to facilitate the return of funds to smaller depositors, arguing that this method is insufficient and unfairly discriminates against other victims. The demonstration was marked by a powerful display of solidarity and anguish. Participants carried placards emblazoned with poignant slogans such as 'Justice for victims,' 'No conspiracy to divide,' 'Equal treatment for small and large depositors,' 'When will victims get justice?', 'Stop fraud in the name of land adjustment,' 'Give justice to cooperative victim depositors,' and a desperate plea, 'Oh government, either kill us or help us cross the river.' Many also displayed banners featuring photographs of the cooperative operators responsible for their financial woes, personalizing the impact of the crisis. The ongoing cooperative crisis and the persistent public protests underscore a critical challenge for Nepal's financial sector and regulatory framework. For investors, this situation highlights the inherent risks associated with unregulated or poorly regulated financial institutions and the potential for systemic shocks. The government's response to these demands will not only determine the fate of thousands of citizens but also set a precedent for future financial oversight and consumer protection. A sustainable resolution requires not just the recovery of funds but also robust reforms to prevent similar crises, rebuild public trust, and ensure the long-term stability of the cooperative movement, which plays a vital role in local economies. The pressure from these protests could compel policymakers to expedite legislative changes and enforcement actions, potentially impacting the broader financial market and investor confidence. As the cooperative victims vow to intensify their struggle, the ball is firmly in the government's court. The resolution of this crisis is paramount not only for the affected individuals but also for reinforcing the integrity of Nepal's financial system and fostering an environment of trust essential for economic growth and stability.
Political Stalemate in Bagmati Province: Parties Scramble to Form New Government Amidst Shifting Alliances
The political landscape in Bagmati Province is currently experiencing significant flux, as major political parties engage in intensive discussions to form a new provincial government. This critical period follows the recent withdrawal of support by the CPN (UML) from the Nepali Congress-led administration, plunging the province into a state of political uncertainty. For investors and the broader economic community, such developments warrant close observation, as provincial stability is intrinsically linked to policy consistency, project implementation, and overall investor confidence. Bagmati Province, a key economic hub in Nepal, comprises a Provincial Assembly of 104 members. To establish a majority government, a coalition or single party must secure the support of at least 53 Members of Parliament (MPs). The current distribution of seats underscores the complexity of forming a stable alliance: the Nepali Congress holds 36 seats, the CPN (Maoist Centre) has 26, the CPN (UML) commands 25, the Rastriya Prajatantra Party (RPP) holds 12, the Nepal Workers and Peasants Party (NWPP) has 3, and the Hamro Nepali Party accounts for 2 seats. Following the CPN (UML)'s decision to retract its support, a move often mirroring shifts in federal political dynamics, the focus has now turned to new coalition possibilities. Initially, an understanding between the CPN (UML) and the CPN (Maoist Centre) for a new government seemed plausible. However, their combined strength of 51 seats (25 from CPN (UML) and 26 from CPN (Maoist Centre)) falls two seats short of the required majority. This arithmetic necessitates the inclusion of at least one additional party, making the negotiation process intricate and potentially protracted. Jagannath Thapaliya, a prominent leader of the CPN (UML) Bagmati Province Parliamentary Party, confirmed that his party is actively engaging with various political entities that could potentially partner with them to bridge this gap. Simultaneously, the Nepali Congress, as the largest party in the provincial assembly, is not sitting idle. Pukar Maharjan, chief whip of the Nepali Congress Bagmati Province, has indicated that the party has initiated its own discussions aimed at forming a government under its leadership. The Nepali Congress is reportedly in talks with the Rastriya Prajatantra Party (RPP), the Nepal Workers and Peasants Party (NWPP), and the Hamro Nepali Party. A potential alliance among these parties – Nepali Congress (36) + RPP (12) + NWPP (3) + Hamro Nepali Party (2) – would collectively secure 53 seats, precisely meeting the threshold required for government formation. This scenario presents a viable alternative and highlights the fluid nature of political alliances in the province. From an economic perspective, prolonged political uncertainty in Bagmati Province could have several ramifications. Delays in government formation can lead to a slowdown in policy implementation, budget allocations, and the commencement or continuation of crucial development projects. Such instability often translates into a cautious approach from both domestic and foreign investors, potentially impacting investment inflows, job creation, and overall economic growth within the province. While provincial political developments do not directly move the NEPSE index, they contribute to the broader national economic sentiment, which can indirectly influence market confidence. A swift and stable resolution to the current political impasse is therefore vital not only for the administrative functioning of Bagmati Province but also for maintaining a predictable and conducive environment for economic activities and investor confidence. The coming days will be crucial as parties navigate these complex negotiations to forge a new path forward for Bagmati Province.
Chief Justice Dr. Manoj Kumar Sharma Concludes Strategic India Visit, Bolstering Bilateral Judicial Cooperation
Kathmandu, Nepal – Chief Justice Dr. Manoj Kumar Sharma has successfully concluded a significant four-day official visit to India, returning to Nepal today. The high-profile visit, which commenced on July 23, was undertaken at the esteemed invitation of his Indian counterpart, Chief Justice Surya Kant. This diplomatic engagement underscores the enduring and robust relationship between the judiciaries of both neighboring nations, reflecting a shared commitment to legal excellence and regional stability. During his stay in India, Chief Justice Dr. Sharma engaged in a pivotal bilateral meeting with Chief Justice Kant. Discussions primarily revolved around the crucial exchange of judicial practices and experiences, aiming to foster mutual learning and enhance the efficiency and effectiveness of legal systems in both countries. Such high-level dialogues are instrumental in identifying common challenges and exploring innovative solutions in judicial administration, case management, and the application of legal principles. The exchange of ideas on judicial reforms, technological integration in courts, and strategies for reducing case backlogs are often key components of such interactions, ultimately contributing to a more streamlined, transparent, and accessible justice system for citizens. For investors, a strong and predictable legal framework is paramount, and these exchanges contribute to strengthening the rule of law, which is a cornerstone of a stable investment climate. A significant aspect of Chief Justice Dr. Sharma's itinerary included an in-depth observation of the Supreme Court of India. This observational visit provided a unique opportunity to gain firsthand insights into the operational mechanisms, administrative protocols, and judicial processes of one of the world's largest and most complex judicial systems. Learning from the administrative structures, technological advancements, and best practices employed by the Indian Supreme Court can offer valuable perspectives for strengthening Nepal's own judicial infrastructure and procedural efficiencies. Understanding how a large judiciary handles its caseload, manages its resources, and implements judicial reforms can be particularly beneficial for Nepal as it continues to evolve its legal framework to meet modern demands and international standards. The visit was not merely ceremonial but a strategic endeavor to reinforce the professional ties between the supreme judicial bodies of Nepal and India. Such collaborations are vital for upholding the rule of law, ensuring legal certainty, and promoting regional stability, which indirectly contributes to a favorable environment for trade and investment. A strong, independent, and efficient judiciary is a cornerstone of any thriving democracy and a prerequisite for attracting and safeguarding both domestic and foreign investments. By engaging in these exchanges, Nepal's judiciary can potentially adopt practices that enhance transparency, reduce litigation times, and strengthen investor confidence by providing a more reliable and efficient dispute resolution mechanism. Chief Justice Dr. Sharma was accompanied by his spouse, Uma Sharma, and Joint Registrar Amit Upreti, highlighting the official nature and importance of the delegation. The successful conclusion of this visit is expected to pave the way for continued cooperation and knowledge sharing between the judicial systems of Nepal and India, ultimately benefiting the citizens of both nations through improved legal frameworks and more efficient justice delivery. This collaborative spirit is a testament to the deep-rooted historical and cultural connections that bind Nepal and India, extending beyond political and economic spheres into the fundamental realm of justice. The insights gained and relationships forged during this visit are anticipated to have a lasting positive impact on the development and modernization of Nepal's judicial sector, fostering an environment conducive to sustained growth and prosperity.
Global IME Bank Pioneers Digital Account Opening via Nagarik App, Enhancing Financial Accessibility
Global IME Bank Limited, a leading financial institution in Nepal, has announced a groundbreaking collaboration with the government's Nagarik App to introduce a seamless digital account opening facility. This innovative service marks a significant milestone in Nepal's banking sector, being the first of its kind to leverage the national digital identity platform for financial services. The initiative is set to revolutionize how Nepali citizens access banking services, making the process more convenient, transparent, and technology-driven. Under this new system, Nepali citizens aged 18 and above who possess a National ID card and are registered with the Nagarik App can now open a personal savings account with Global IME Bank entirely online. The process is remarkably straightforward: users simply scan a QR code available on the bank's website via the Nagarik App. This integration eliminates the traditional hurdles associated with opening a bank account, such as extensive paperwork and multiple physical visits, thereby significantly enhancing financial inclusion across the nation. A key aspect of this digital transformation is the emphasis on data security and customer privacy. Global IME Bank will securely obtain the necessary personal details for account opening directly from the Nagarik App, but only after receiving prior consent from the individual. This mechanism not only streamlines the data entry process, removing the need for customers to repeatedly input their information, but also ensures the highest standards of confidentiality and data protection. While the initial account opening is digital, customers will still need to complete a final verification step, either by visiting their nearest Global IME Bank branch or through a secure video Know Your Customer (KYC) process, ensuring regulatory compliance and robust security protocols. This strategic move by Global IME Bank underscores its commitment to embracing digital innovation and utilizing government digital infrastructure to deliver secure, simple, and reliable banking services. The bank firmly believes that this partnership with the Nagarik App will not only simplify the account opening procedure but also foster a more modern and efficient banking experience for its diverse customer base. It represents a forward-thinking approach to banking, aligning with global trends towards digitalization and customer-centric service delivery. Global IME Bank has a long-standing reputation for adopting modern technology and delivering exceptional customer service, earning it numerous national and international accolades. The bank has been recognized as 'Bank of the Year 2014', 'Best Internet Bank 2016', and has consecutively received the 'Best Bank Nepal' title for 2024, 2025, and 2026. Furthermore, it has been honored with prestigious awards such as the Euromoney Award for Excellence in 2022, 2024, and 2025, 'Best Bank ESG Nepal 2024', and 'Best Employer'. These awards reflect the bank's consistent pursuit of excellence and its leadership position in the Nepali financial landscape. As the first private sector commercial bank to establish a branch network across all 77 districts of Nepal, Global IME Bank boasts an extensive reach. It currently serves its customers through a vast network of over 1,000 service centers, which include 342 branch offices, 368 ATMs, 147 branchless banking service points, 69 extension and revenue collection counters, and 3 foreign representative offices. Beyond its domestic operations, the bank plays a crucial role in the national economy by facilitating remittances through formal channels from various countries, including the United States, United Kingdom, Australia, Malaysia, South Korea, Japan, Saudi Arabia, Qatar, UAE, and India. This new digital account opening facility is expected to further enhance its ability to serve a broader segment of the population, including those who might have previously faced barriers to accessing traditional banking services. The integration with Nagarik App is a testament to Global IME Bank's vision of a digitally empowered Nepal, where financial services are accessible to everyone, everywhere. It sets a precedent for other financial institutions and contributes significantly to the national agenda of digital transformation and financial inclusion.
Pitambar Gaire Joins Arambha Chautari Laghubitta Board, Poised to Drive Growth and Financial Inclusion
The Board of Directors of Arambha Chautari Laghubitta Bittiya Sanstha Limited has announced the strategic appointment of Mr. Pitambar Gaire as a new member of its esteemed board. This significant decision, made during the institution's 180th board meeting, effectively fills a vacant founding board member position, signaling a renewed focus on strengthening the microfinance institution's governance framework and strategic direction. Mr. Gaire, a permanent resident of Chapakot, Syangja district, is expected to bring a wealth of experience and a clear, forward-looking vision for the future of Arambha Chautari Laghubitta and the broader microfinance sector in Nepal. Microfinance institutions (MFIs) play an indispensable role in Nepal's socio-economic development, particularly in fostering financial inclusion and empowering underserved communities. They are crucial conduits for providing essential financial services, including small loans, savings facilities, and micro-insurance, to individuals and micro-enterprises that typically face barriers to accessing conventional banking facilities. In this dynamic and vital sector, the composition and expertise of an MFI's board are paramount for ensuring robust corporate governance, effective risk management, and sustainable growth. The board is entrusted with the critical responsibilities of setting the strategic agenda, providing oversight to management, and ultimately safeguarding the interests of all stakeholders, including shareholders, clients, and employees. Upon his appointment, Mr. Gaire has articulated a clear and ambitious set of objectives. He emphasized his unwavering commitment to the overall strengthening and advancement of the microfinance sector. "My main objective will be to achieve economic growth and development of the institution in the microfinance sector and to create an environment where microfinance members can easily receive services," he stated. This declaration underscores a dual focus: enhancing the institution's financial performance and operational efficiency while simultaneously improving service accessibility and quality for its valued members. He further expressed his dedication to elevating Arambha Chautari Laghubitta to unprecedented heights, earning the enduring trust of its clientele, and expanding simple yet effective financial access across the nation. These aspirations are perfectly aligned with the core mission of microfinance and are fundamental for achieving long-term success in an increasingly competitive financial landscape. Arambha Chautari Laghubitta, with its central office strategically located in Banepa, has cultivated a significant and impactful presence across various parts of Nepal, diligently delivering vital financial services through its extensive network of branches. The institution's unwavering commitment to reaching remote and rural populations has been a foundational cornerstone of its operational philosophy. The addition of Mr. Gaire to the board is widely anticipated to substantially bolster the institution's corporate governance framework and act as a catalyst for its ambitious business expansion initiatives. His insights, leadership, and strategic acumen are expected to contribute significantly to strategic planning, enhance operational efficiency, and facilitate the development of innovative financial products meticulously tailored to the evolving needs of microfinance clients. For discerning investors, such high-profile leadership appointments serve as key indicators of an institution's commitment to stability, sustainable growth, and sound management practices. A strong and experienced board inspires confidence, suggesting that the company is well-positioned to adeptly navigate market challenges and capitalize on emerging opportunities. Mr. Gaire's stated emphasis on economic growth, client-centric services, and expanding financial access suggests a progressive and forward-thinking approach that could translate into enhanced shareholder value and a more resilient and adaptable business model. As the microfinance sector in Nepal continues its dynamic evolution, driven by regulatory changes, technological advancements, and increasing demand for inclusive financial services, experienced and visionary leadership on the board will be instrumental in ensuring Arambha Chautari Laghubitta's continued success and its invaluable contribution to national development.
Department of Inland Revenue Clarifies VAT on Electricity: Collections from Ashar Deemed Incorrect, Refund Expected
The Department of Inland Revenue (DIR) has issued a significant clarification regarding the Value Added Tax (VAT) on electricity consumption, concluding that the tax should not have been applied from Ashar 1st. This directive comes after the Nepal Electricity Authority (NEA) sought an official explanation on the matter. High-ranking officials from the DIR have confirmed that VAT on electricity consumption is not applicable from Ashar and will instead be effective from Shrawan 1st. The department is expected to formalize this decision through an official letter by the end of today. This clarification implies that NEA's move to levy VAT from Ashar 1st was erroneous. The genesis of this issue lies in the government's budget announcement for the fiscal year 2080/081, which was unveiled on Jestha 15. The budget included a provision to impose a 5% VAT on electricity consumption for customers exceeding 50 units. This measure was intended to broaden the tax base and generate additional revenue. However, the Nepal Electricity Authority commenced collecting this VAT from consumers starting Ashar 1st, even before the official implementation date of the budget provisions. This premature collection sparked widespread criticism from the public and various consumer advocacy groups, who questioned the legality and fairness of the charges. The core of the controversy revolves around the timing of the tax implementation. While the budget outlined the new VAT structure, the effective date for its application appears to have been misinterpreted or prematurely enforced by the NEA. The DIR's latest stance unequivocally states that the VAT regime for electricity consumption should commence from Shrawan 1st, aligning with the standard fiscal year start and proper regulatory procedures. This means that all VAT collected by NEA from Ashar 1st until the end of the month was, by the DIR's interpretation, collected incorrectly. A critical question now looms large: will the Nepal Electricity Authority refund the VAT amounts already collected from consumers for the month of Ashar? Given the DIR's clear declaration that the collection from Ashar 1st was not in accordance with the rules and was likely a result of a technical or procedural misstep, the expectation is that NEA will indeed be obligated to refund these amounts. For investors, this situation highlights potential operational and financial implications for NEA, as a large-scale refund process could entail significant administrative effort and temporary cash flow adjustments. The process of refunding the collected VAT amounts presents its own set of challenges. NEA would need to establish a clear and systematic mechanism to identify affected customers and process the refunds. This would likely involve leveraging their existing customer databases and billing systems to ensure accurate and timely reimbursement. The authority's ability to efficiently manage this refund process will be crucial in restoring public trust and demonstrating accountability. Furthermore, this incident underscores the importance of precise communication and coordination between government bodies and public enterprises regarding the implementation of new fiscal policies. From an economic perspective, this episode reflects the complexities of tax policy implementation and the need for meticulous planning to avoid public discontent and administrative inefficiencies. While the government aims to enhance revenue through measures like VAT on electricity, the execution must be flawless to maintain public confidence in the financial system. For the broader economy, ensuring that such policies are rolled out smoothly is vital for stability and predictability, which are key factors for both domestic and foreign investment. The resolution of this issue will be closely watched by consumers and stakeholders alike, setting a precedent for how similar situations might be handled in the future.
Nivix Pharmaceuticals Gears Up for IPO, Receives 'B+' Rating from Infomerics Nepal
Nivix Pharmaceuticals Limited, an emerging player in Nepal's pharmaceutical manufacturing sector, is actively progressing with its plans to issue ordinary shares to the general public. As a crucial step in this process, the company has successfully obtained an 'Issuer Rating' of 'IRN B+ (Is)' [Single B Plus (Issuer)] from Infomerics Credit Rating Nepal Limited. This rating, while signifying a moderate degree of risk, indicates that the company's capacity to meet its financial obligations carries a high risk. According to the rating agency, entities receiving this grade are generally considered susceptible to external shocks and may face challenges in timely debt servicing (principal and interest payments). The proposed Initial Public Offering (IPO) is a strategic move by Nivix Pharmaceuticals to fuel its ambitious business expansion plans and address its working capital requirements. Established as a private limited company in 2017, Nivix transitioned into a public limited entity in December 2024, paving the way for its public listing. The capital raised through the IPO is expected to play a pivotal role in reducing the company's existing debt burden and significantly enhancing its production capacity. The rating report underscores that the company's financial health could see substantial improvement if the IPO process is completed efficiently and the proceeds are utilized effectively and judiciously. From a financial perspective, Nivix Pharmaceuticals is currently in a nascent stage of its operational journey. The company commenced commercial production only recently, in June 2024. Its revenue trajectory, however, shows promising growth from a low base. In the fiscal year 2080/81, the company recorded an operating income of just NPR 1 million. This figure surged to NPR 81 million in FY 2081/82, marking its first full year of commercial operations. Further demonstrating an upward trend, Nivix Pharmaceuticals generated NPR 113 million in revenue during the first nine months of the current fiscal year 2082/83, indicating a positive momentum in its market penetration and sales. Despite this revenue growth, the company's net profit remains in the negative territory, primarily due to high financial costs, particularly interest expenses. Another significant challenge for Nivix is its current capacity utilization, which stands at approximately 24%. Maximizing this utilization is crucial for achieving economies of scale and improving profitability. Despite the prevailing financial indicators, Nivix Pharmaceuticals possesses several inherent strengths that offer a positive outlook for its future. The company is steered by a six-member Board of Directors, chaired by Kalidas Paudel, an individual with over two decades of extensive experience in the financial sector. Complementing this leadership are Managing Director Indra Baniya and Director Dr. Sujan Chandra Sigdel, both bringing more than 20 years of specialized expertise in the pharmaceuticals industry. This experienced management team is a critical asset, providing strategic direction and operational acumen. Furthermore, the company is rapidly expanding its product portfolio. By June 2026, Nivix Pharmaceuticals expects to have secured production permits for 109 products and marketing permits for 78. Currently, 72 products, including various tablets and capsules, are already available in the Nepali market, showcasing a robust pipeline and increasing market presence. However, investors must also consider the inherent risks associated with the pharmaceutical sector and Nivix Pharmaceuticals specifically. The industry is inherently working capital-intensive, requiring substantial funds for operations, inventory, and research. A major risk factor for Nivix is its significant reliance on imported raw materials. Fluctuations in the prices of these raw materials and volatility in the US Dollar exchange rate can directly impact the company's cost structure and, consequently, its profitability. Moreover, the Nepali pharmaceutical market is characterized by intense competition from numerous well-established domestic and international players. This competitive landscape could pose challenges for new entrants like Nivix in terms of pricing strategies and market share acquisition. Adherence to stringent policies and quality standards set by the regulatory body, the Department of Drug Administration (DDA), also presents an ongoing challenge and requires continuous investment in quality control and compliance. For investors considering Nivix Pharmaceuticals' IPO, this opportunity could be characterized as "high risk, high reward." While the company is currently operating at a loss, its aggressive business expansion trajectory and the presence of an experienced management team suggest a potential for positive future outcomes. Nevertheless, the 'B+' rating serves as a clear caution, advising investors to proceed with due diligence and a thorough understanding of the associated risks. The company's production plant is located in Vyas-10, Tanahun, with its corporate office in Pokhara. Notably, Nivix has managed to improve its debt-to-equity ratio (gearing ratio) to 1.04 times, a positive development compared to its past financial structure. Ultimately, the success of this investment will largely hinge on the company's ability to effectively manage its finances post-IPO, expand its market reach, and, critically, achieve full utilization of its production capacity to transition into profitability. Only then can investors expect to realize appropriate returns on their investment.
South Asian Internet Pioneers Honoured at SANOG 44 in Kathmandu
Internet pioneers from five South Asian countries were honoured at the 44th South Asian Network Operators Group (SANOG) conference held in Kathmandu for their contributions to expanding internet access and developing commercial internet services in the region. The Internet Enablers Awards were presented twere Dilip Agrawal (Nepal), Neeraj Sonker and Suchit Nanda (India), Tariq Mustafa (Pakistan), Sumon Ahmed Sabir (Bangladesh), and Jichen Thinley (Bhutan) in recognition of their role in shaping the region's digital landscape. Nepal's Dilip Agrawal, founder of WorldLink, was recognised for transforming the company from a dial-up internet provider into the country's largest internet service provider and for expanding broadband connectivity across Nepal, including remote areas. According to Internet Enablers, the awards recognise individuals whose technical leadership and vision helped lay the foundation for internet infrastructure across the Asia-Pacific region, preserving the history of the internet while acknowledging the pioneers behind its growth. The three-day SANOG conference began in Kathmandu on Sunday.
Nepal's Luxury Tourism Shines: Shinta Mani Mustang Crowned World's Best, Manang Lodge Honored by TIME
Nepal's burgeoning luxury tourism sector has achieved unprecedented global recognition, marking a pivotal moment for the nation's economic diversification and international standing. Two distinguished properties, both operated by the visionary Sherpa Hospitality Group, have garnered prestigious accolades, firmly positioning Nepal on the global map for high-end travel experiences. Leading this wave of international acclaim is Shinta Mani Mustang, which has been named the world’s No. 1 luxury hotel in Robb Report’s highly anticipated “50 Greatest Luxury Hotels on Earth 2026” list. This extraordinary achievement is the result of a rigorous evaluation process conducted by 24 international luxury travel experts, underscoring the resort's commitment to unparalleled service, exquisite design, and an immersive cultural experience. This latest triumph follows a consistent streak of global awards for Shinta Mani Mustang in both 2024 and 2025, solidifying its reputation as a consistent leader in the ultra-luxury segment. For investors, this recognition signals not only the exceptional quality of the property but also the growing potential for premium hospitality ventures in Nepal, attracting a discerning clientele with significant spending power. Adding to this remarkable success, Manang Lodge, operating under the Mountain Lodges of Nepal brand, has earned a coveted spot on TIME Magazine’s “World’s Greatest Places to Stay 2026” list. Notably, it stands as the sole Nepali hotel to be featured on this prestigious compilation, highlighting its unique appeal and world-class standards. The 14-room luxury lodge offers an unparalleled high-end accommodation experience amidst the majestic Himalayas. Guests are treated to heated rooms, panoramic vistas of the Annapurna, Gangapurna, and Tilicho mountains, and an innovative “luxury base camp” concept that blends adventure with comfort. Strategically located at an altitude of approximately 3,500 meters along the Marsyangdi River in Manang, the lodge provides convenient access to iconic attractions such as Braga Monastery, pristine glacial lakes, and the elusive snow leopard habitats. Its prime location has made it a favored choice among both domestic and international travelers embarking on the renowned Annapurna Circuit trek, demonstrating the successful integration of luxury into adventure tourism. This dual international recognition is poised to significantly strengthen Nepal’s image as a premium adventure and luxury tourism destination. Tourism stakeholders are optimistic that these achievements will not only enhance the country's brand but also attract a new demographic of high-net-worth international travelers, moving beyond its traditional reputation solely as an adventure tourism hub. The success of these properties underscores Nepal’s inherent natural beauty, its rich Himalayan culture, and the rapidly evolving standards of its hospitality sector. For the broader economy, this shift promises increased foreign exchange earnings, potential for foreign direct investment in related infrastructure and services, and the creation of high-value employment opportunities, particularly in remote regions like Mustang and Manang. The Sherpa Hospitality Group's vision in developing and operating these world-class establishments serves as a testament to the potential for sustainable luxury tourism to drive economic growth and showcase Nepal's unique offerings on a global stage.
Key Leadership Transition: Dinesh Bahadur Amatya Moves from IME Life to Himalayan Life Insurance as DCEO
The Nepali insurance sector, a dynamic and increasingly competitive landscape, has recently witnessed a significant leadership transition that is likely to draw the attention of investors and industry observers alike. Dinesh Bahadur Amatya, a prominent figure in the life insurance segment, has resigned from his position as Deputy Chief Executive Officer (DCEO) at IME Life Insurance. His departure, effective Shrawan 8, marks the end of a chapter with IME Life and signals the beginning of a new one with Himalayan Life Insurance, where he is set to assume the same crucial DCEO role. This high-profile executive movement underscores the intense competition for seasoned talent within Nepal's rapidly expanding financial services industry. The DCEO position is pivotal in any insurance company, typically overseeing critical operational areas such as sales, marketing, underwriting, and strategic business development. The individual holding this role plays a significant part in shaping the company's market strategy, driving growth, and ensuring regulatory compliance. Therefore, such a transition can have notable implications for both the departing and the receiving organizations. For IME Life Insurance, the departure of a DCEO like Mr. Amatya will necessitate a strategic reassessment of its leadership structure and potentially its operational direction. While companies often have robust succession plans in place, the loss of an experienced executive can still present challenges in maintaining momentum and continuity, especially in key growth areas. Investors in IME Life will be keen to observe how the company manages this transition and what steps it takes to fill the void left by Mr. Amatya's exit, ensuring that its strategic objectives remain on track. Conversely, Himalayan Life Insurance stands to gain significantly from this appointment. Bringing in an executive of Mr. Amatya's caliber and experience suggests a strategic move by Himalayan Life to bolster its leadership team and enhance its competitive edge. His proven track record and deep understanding of the Nepali life insurance market are expected to contribute positively to Himalayan Life's growth trajectory, market penetration, and product innovation. This move could signal Himalayan Life's ambition to capture a larger market share or to embark on new strategic initiatives, leveraging Mr. Amatya's expertise. The broader context of the Nepali insurance market is also relevant here. The sector has been experiencing robust growth, driven by increasing financial literacy, rising disposable incomes, and supportive regulatory frameworks. However, this growth also brings heightened competition among the numerous life and non-life insurers. Executive movements like Mr. Amatya's are a testament to the demand for skilled professionals who can navigate this complex environment, drive performance, and adapt to evolving market dynamics. Shareholders and policyholders of both companies will be closely monitoring the impact of this leadership change. For shareholders, the focus will be on how this transition affects financial performance, stock valuation, and future growth prospects. For policyholders, the concern will be around the continuity of service, product offerings, and the overall stability of their chosen insurer. In conclusion, Dinesh Bahadur Amatya's move from IME Life Insurance to Himalayan Life Insurance as DCEO is more than just a personnel change; it is a strategic realignment of talent within Nepal's vibrant insurance sector. It highlights the ongoing executive mobility and the strategic importance of leadership in driving corporate success in a competitive market. This development will undoubtedly be a key point of discussion among industry analysts and investors as they assess the future trajectories of both IME Life and Himalayan Life Insurance.
Prime Minister Pledges Robust Government Support to Propel Nepali Products into Global Markets
In a significant move aimed at bolstering Nepal's economic landscape, Prime Minister Balendra Shah has publicly committed to the government playing a pivotal role in expanding the international market for Nepali products and actively addressing the challenges faced by local entrepreneurs. This pledge, made during a crucial discussion at the Prime Minister's Office in Singha Durbar, signals a renewed focus on export promotion and industrial growth. The Prime Minister engaged with key representatives from leading industry associations, including the Nepal Plywood Producers Association, Nepal Carpet Producers and Exporters Association, Nepal Pashmina Industry Association, and Nepal Dog Chew Producers Association. These discussions underscored the government's intention to directly engage with the private sector to understand and resolve the systemic issues hindering Nepal's export potential. During the meeting, Prime Minister Shah issued immediate directives to relevant government bodies, urging them to swiftly remove existing legal and technical impediments that have long plagued the export of Nepali goods. This proactive stance is expected to streamline processes, reduce bureaucratic hurdles, and create a more conducive environment for businesses looking to tap into international markets. Furthermore, the Prime Minister emphasized the government's special attention to promoting domestic products by resolving the practical problems encountered by entrepreneurs, reinforcing a commitment to 'Make in Nepal' and 'Export from Nepal' initiatives. This commitment holds immense significance for Nepal's economy, which heavily relies on remittances and imports. A robust export sector is crucial for generating foreign exchange, creating sustainable employment opportunities, fostering industrialization, and ultimately reducing the nation's trade deficit. By actively supporting local industries, the government aims to diversify the economic base and build resilience against external shocks. Nepali exporters frequently grapple with a myriad of challenges, ranging from complex customs procedures and varying international quality standards to logistical bottlenecks and limited access to market intelligence. The Prime Minister's directive to address these 'legal and technical hurdles' is a welcome development, promising reforms in areas such as product certification, trade facilitation, and the negotiation of favorable international trade agreements. Such reforms are vital for enhancing the competitiveness of Nepali products on the global stage. The industries represented in the meeting — plywood, carpets, pashmina, and dog chew products — are diverse, reflecting both traditional strengths and emerging niche markets. Carpets and pashmina, for instance, have historically been significant contributors to Nepal's export earnings, renowned for their craftsmanship and quality. Supporting these sectors, along with modern industries like plywood and the burgeoning dog chew market, can unlock substantial economic value and showcase Nepal's manufacturing capabilities. For investors, both domestic and international, the Prime Minister's commitment signals a potentially more stable and growth-oriented policy environment. A government that actively champions its export sector and addresses business concerns creates a more attractive investment climate. This proactive approach can lead to increased confidence, encouraging capital allocation into productive sectors and fostering long-term economic development. Ultimately, this initiative aligns with Nepal's broader vision of achieving sustainable economic growth and becoming a more integrated player in regional and global trade. The positive sentiment observed among business representatives leaving Singha Durbar post-meeting, as noted by local observers, suggests a newfound optimism. This commitment, if effectively translated into action, could mark the beginning of a new chapter for Nepal's export-led growth, paving the way for greater prosperity and economic self-reliance.
Curfew Imposed in Parts of Sunsari Until Further Notice
The District Administration Office, Sunsari, has imposed a curfew in several areas of the district from 7:00 am today until further notice. The curfew order has been issued under Section 6(a) of the Local Administration Act, 2028 BS, according to the District Administration Office. The curfew applies to the area from Bhantabari Bazaar to Juniya Tole in the east, Ghuski Dhar in the west, the Harinagar Rural Municipality Office in the north and Basantapur in the south. Similarly, the order covers the Ghuski Bazaar area bounded by the Moranga Dhar River to the east, Inglis to the west, the Sunsari River to the north and the Harinagar Rural Municipality Office to the south. The Kaptanganj Bazaar area, stretching from Yadav Tole in the east to Risal Secondary School in the west, Krishna Secondary School in the north and the Nepal-India border in the south, has also been placed under curfew. Likewise, the curfew covers the Basti Bazaar area between Kasimiya Madrasa in the east, Ghuski Police Post in the west, Isha Hardware in the north and Dilshad Public School in the south. The Dewanganj Bazaar area, extending from Musahar Tole along the road to Biratnagar in the east, Moriya Khola in the west, Bidra Mills in the north and the Rural Municipality Office in the south, is also subject to the curfew order. Meanwhile, the Sunsari District Security Committee has imposed a prohibitory order across the entire area of Harinagar Rural Municipality and Dewanganj Rural Municipality. Under the order, the gathering of more than five people at a time is prohibited from 7:00 am to 7:00 pm today. The District Administration Office has warned that anyone violating the curfew or prohibitory order may face a fine of up to Rs. 5,000 and imprisonment for up to one month. Authorities have urged the public to comply with the orders and cooperate with security agencies to maintain peace and security in the district.
Sanima Bank Posts 38.01% Rise in Net Profit in Q4; Distributable Profit Soars, EPS Reaches to Rs. 24.92
Sanima Bank Limited (SANIMA) reported a net profit of Rs. 2.55 arba in the fourth quarter of FY 2082/83, marking a notable improvement of 38.01% compared to Rs. 2.57 arba in the corresponding period of the previous fiscal year. The bank’s net interest income increased by 10% to Rs. 6.99 arba, up from Rs. 6.35 arba in Q4 FY 2082/83, reflecting growth in its core banking operations. Total deposits stood at Rs. 2.49 Kharba, while loans and advances expanded to Rs. 1.95 Kharba during the review period. Operating profit also witnessed a sharp growth of 44.44%, reaching Rs. 5.16 arba. However, personnel expenses rose to Rs. 2.26 arba during the period. Distributable Profit increased by 34.66% to Rs.2.83 arba. The bank posted an earnings per share (EPS) of Rs. 24.92, while net worth per share reached Rs.188.42. The capital adequacy ratio improved to 13.10 percent, and the cost of funds declined to 3.51 percent. At the end of the fiscal year, Sanima Bank’s shares were trading at Rs. 350, with a price-earnings (PE) ratio of 14.04 times. Report: Major Financial Highlights: Particulars (In Rs '000) Sanima Bank Limited Q4 2082/83 Q4 2081/82 Difference Paid Up Capital 15,581,525.41 13,581,525.41 14.73% 8.25% Preference Share 2,000,000.00 - 0.00% Paid Up Excluding Pref. Share 13,581,525.41 - - Retained Earnings 2,884,215.27 2,102,906.99 37.15% Reserves 9,124,515.14 7,349,127.49 24.16% Deposit 249,118,017.13 223,954,679.23 11.24% Loans & Advances 195,884,730.90 176,440,505.81 11.02% Net Interest Income 6,991,583.50 6,355,997.91 10.00% Personnel Expenses 2,263,017.20 2,001,700.08 13.05% Impairment Charges 1,077,783.77 1,889,120.78 -42.95% Operating Profit 5,165,172.26 3,575,882.68 44.44% Net Profit 3,550,144.53 2,572,463.98 38.01% Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 2,831,776.92 2,102,906.99 34.66% Capital Adequacy (%) 13.10 13.01 0.69% NPL (%) 1.02 1.20 -15.00% Cost of Fund (%) 3.51 4.70 -25.32% EPS (In Rs.) 24.92 26.33 -5.33% Net Worth per Share (In Rs.) 188.42 168.83 11.60% Qtr end PE Ratio (times) 14.04 - Qtr End Market Price 350 - -
Nepal Rastra Bank to Collect 30 Billion from Bank and Financial Institution Today
Nepal Rastra Bank (NRB) has announced that it will collect deposits worth Rs. 30 billion from banks and financial institutions through a bidding process today. According to a notice published today, the central bank will collect the deposits for a period of 179 days. The bidding will take place on Shrawan 11 (July 27) through the Online Bidding System at 3 Pm. The interest rate will be decided through the bidding process. The minimum amount for bidding has been set at Rs. 10 crore, while the maximum limit is (In multiples of) 5 Crore, up to the total issue amount. However, institutions can submit multiple bids within the total announced amount. Only licensed ‘A’, ‘B’, and ‘C’ class banks and financial institutions approved by NRB are allowed to take part in the bidding. The deposits collected will be returned along with interest on Magh 8, 2083 (January 22, 2026).
Nepal’s Electricity Demand Reaches 73,629 MWh as NEA Exports Surplus Power
Nepal’s total electricity demand has reached 73,629 megawatt-hours (MWh), while the country has continued exporting surplus electricity during the monsoon season. According to the Nepal Electricity Authority (NEA), Nepal is currently not importing electricity from India. Instead, the country is exporting a total of 22,102 MWh of electricity as domestic power generation exceeds demand during the monsoon season. Private energy producers are currently contributing 47,563 MWh of electricity to the national power system, making them the largest source of electricity supply. Similarly, NEA subsidiary companies are generating 17,108 MWh, while 8,959 MWh of electricity is being generated from projects directly owned by the NEA. The figures reflect the increased availability of electricity during the monsoon season, when river and stream levels rise, and hydropower plants operate at higher capacity. The NEA has reported that electricity demand during the evening peak period has reached 3,248 MWh. Despite continuous rainfall across various parts of the country, the authority has stated that electricity supply has remained uninterrupted nationwide. The NEA has also kept technical personnel on standby to respond promptly to any power disruptions and carry out necessary maintenance. Maintenance teams have been placed on round-the-clock standby at all seven provincial offices as well as in Kathmandu. The authority said the teams are prepared to immediately mobilise in the event of any technical fault or disruption to the electricity supply.
Ridge Line Energy Limited: 71,100 Mutual Fund Shares to Unlock on Bhadra 13, Signaling Potential Market Movement
Kathmandu, Nepal – Ridge Line Energy Limited (RLEL) has officially announced that the lock-in period for 71,100 ordinary shares, previously allocated to various mutual funds, is set to expire on the 13th of Bhadra, 2083. This development marks a significant point for the company's stock, as these shares will become freely tradable on the Nepal Stock Exchange (NEPSE) from the specified date. Investors and market observers are now keenly watching to understand the potential implications of this increased supply on RLEL's share price and overall market dynamics. The lock-in period is a standard regulatory mechanism, typically imposed for a specific duration following an Initial Public Offering (IPO) or a fresh issuance of shares. Its primary purpose is to prevent immediate selling by initial investors, such as promoters, employees, or institutional investors like mutual funds, thereby fostering price stability and demonstrating long-term commitment to the company. In the case of RLEL, 5% of its total issued capital, amounting to 71,100 units out of 1,422,000 ordinary shares, were earmarked for mutual funds. These shares were subject to a mandatory six-month lock-in period, which is now drawing to a close. Ridge Line Energy Limited boasts an issued capital of NPR 1.18 billion (Rs. 1.18 Arba). The release of these 71,100 shares, while a relatively small fraction of the total outstanding shares, could still introduce a notable increase in the floating stock available for trading. For mutual funds, the expiry of the lock-in period provides them with the flexibility to either hold onto their investment, reflecting continued confidence in RLEL's future prospects, or to divest their holdings to realize gains or rebalance their portfolios. Their decision will undoubtedly influence market sentiment surrounding RLEL. For individual investors, this event presents both opportunities and potential risks. An increase in the supply of shares on the market could, in theory, exert downward pressure on the stock price, especially if a significant portion of the mutual funds decide to sell. Conversely, if mutual funds choose to retain their shares, or if there is strong buying interest from other investors, the impact might be minimal or even positive, signaling institutional endorsement. Investors are advised to closely monitor RLEL's trading volume and price movements in the days leading up to and immediately following Bhadra 13. Furthermore, this development prompts a broader consideration of RLEL's fundamentals. As a company in the energy sector, particularly hydropower, its performance is often tied to project development, operational efficiency, and regulatory environment. Investors should delve into RLEL's recent financial reports, project updates, and future growth strategies to make informed decisions. The release of these shares is a routine event in the lifecycle of a publicly traded company, but its impact is always contingent on prevailing market conditions and the specific actions of the institutional holders. In conclusion, the impending expiry of the lock-in period for Ridge Line Energy Limited's mutual fund shares is a key event for the NEPSE market. It underscores the dynamic nature of stock trading and the importance of understanding regulatory frameworks. While the immediate impact remains to be seen, it serves as a timely reminder for investors to conduct thorough due diligence and stay abreast of corporate announcements to navigate the market effectively. The coming weeks will reveal how the market absorbs this new supply and what it means for RLEL's valuation.
Eroded Capital, Elevated Prices: Where Is the Real Value Hiding in NEPSE?
An analysis of 278 listed companies, prices (average) as of 16–17 July 2026, and other indicators for the 3rd Quarter of FY 2082-83 Walk into any tea shop in Nepal these days, and someone is talking about shares. Which hydropower IPO is opening, which stock doubled last month, which symbol to buy before Sunday. But the exchange's own data tells a quieter, more uncomfortable story: in one out of every five listed companies, the shareholders' original money has already been partly eaten, and the market is paying premium prices for it anyway. Meanwhile, the most profitable, most regulated companies in the country sit ignored at throwaway valuations. This article walks through that paradox using nothing but publicly available numbers and two ideas simple enough to explain over tea. Two ideas, explained over tea Net worth per share (book value): Imagine a company sold everything it owns today, paid off every loan, and split the leftover cash among shareholders. Each share's portion is its net worth per share. Nepali shares carry a face value of Rs 100, so if net worth per share has slipped below Rs 100, the company has lost part of the money investors originally put in. In finance-speak, the capital has been eroded. P/E ratio: How many years of the company's current profit are you paying for one share? A P/E of 15 means 15 years of earnings. Globally, 15–25 is normal. A P/E of 100 means you are paying for a century of today's profit, pure faith in a very different tomorrow. Hold these two ideas. The entire market becomes readable. Finding No. 1: 61 companies have eaten shareholders' money and still trade like winners Of 269 companies reporting net worth, 61, more than one in five, have net worth per share below the Rs 100 face value. Two are negative: liabilities exceed everything they own. Erosion alone is not a scandal. A young hydropower plant burns money before its turbines earn. The scandal is the price tag: 40 of the 61 eroded companies trade above Rs 300, and 15 trade above Rs 500. Their median price is about Rs 341, three and a half times the face value that is already partly gone. Where measurable, they trade at a median of 4.7 times book value. Table 1: Weak on the inside, expensive on the outside Company Symbol Sector Net worth/share (Rs) Price (Rs) EPS (Rs) Menchhiyam Hydropower MCHL Hydro −23.87 285 0.93 Janaki Finance JFL Finance −6.46 386 −4.21 Dibyashwori Hydropower DHPL Hydro 5.06 282 2.92 Narayani Dev. Bank NABBC Dev. Bank 39.19 825 −10.98 Upper Tamakoshi UPPER Hydro 46.69 197 1.81 Barahi Hydropower BHPL Hydro 50.03 479 −0.59 Shiva Shree Hydropower SSHL Hydro 54.59 204 −311.00 Modi Energy MEL Hydro 58.62 223 −3.11 Read the first row twice. Menchhiyam's net worth per share is minus Rs 24 on paper; shareholder capital is more than fully wiped out, yet the share changes hands near Rs 285. Narayani Development Bank has lost two-thirds of its capital, is losing Rs 9.48 per share every year, and trades above Rs 825. What are buyers paying for? Hope. Hope of full generation, of a rights issue, of a merger, of a greater fool next month. Hope is not always wrong, but it should be priced like hope, not like certainty. Finding No. 2: The market's median price is 54 years of profit Across 226 companies with a valid ratio, the median P/E is about 54, double or triple what the world calls normal. Sixty companies trade above 100 times earnings; the champion, Kalinchock Hydropower, trades above 3,300 times. The market's median price-to-book is 4.5. And 45 companies (17%) are currently loss-making, more than half of them in hydropower. Now look at where the cheapness and the expensiveness actually live: Table 2: What each sector really costs Sector Companies Median P/E Median P/B Loss-makers Commercial Banks 19 18.7 1.4 0 Development Banks 16 26.9 2.7 3 Manufacturing 17 46.6 4.8 3 Microfinance 50 46.6 5.7 1 Life Insurance 14 57.1 3.8 0 Hydro Power 110 64.0 4.3 24 Finance 13 67.6 4.0 3 Investment 7 93.3 9.4 1 Non-Life Insurance 13 107.6 3.0 1 Hotels & Tourism 8 — 7.3 6 Hotels & tourism has too few profitable companies for a meaningful median P/E; six of its eight companies are loss-making. Chart 1: Median P/E by sector, commercial banks are the outlier Why should a high P/E worry you? Because it quietly decides your returns before you even buy. Think of it this way: if you pay Rs 100 for a share of a company earning Rs 2 per share (a P/E of 50), the company is generating just 2% a year on your money, less than half of what a fixed deposit pays, with far more risk attached. For that trade to make sense, the company's profit must grow dramatically, year after year, without fail. If growth merely turns out to be ordinary, the price has only one direction to travel. This is the trap of high-P/E markets: the danger is invisible on the way up, because rising prices feel like proof that everything is fine. But a stock bought at 54 times earnings does not need bad news to fall; it only needs the good news to stop. And when many investors have paid such prices with borrowed money, a small disappointment in one corner of the market can turn into selling pressure everywhere. High P/E, in short, is not a prediction of a crash; it is a measure of how little room the market has left itself for anything to go wrong. Table 3: The ten most expensive shares on NEPSE — priced for a miracle Company Symbol Sector Price (Rs) EPS (Rs) P/E Return on your money* Kalinchock Hydropower KHPL Hydro 963 0.29 3,321 0.03% Hathway Investment Nepal HATHY Investment 706 0.95 936 0.11% Shreenagar Agritech SAIL Manufacturing 916 1.64 588 0.17% Dolti Power DOLTI Hydro 331 0.83 578 0.17% Multipurpose Finance MPFL Finance 595 1.16 577 0.17% Crest Micro Life Insurance CREST Life Insurance 1,200 2.15 565 0.18% Guardian Micro Life Insurance GMLI Life Insurance 1,205 2.59 475 0.21% Pure Energy PURE Others 838 1.95 466 0.21% SY Panel Nepal SYPNL Manufacturing 1,318 3.08 434 0.23% Menchhiyam Hydropower MCHL Hydro 285 0.93 423 0.24% *Earnings yield: the company's current annual profit as a percentage of the price you pay. For comparison, a bank fixed deposit pays around 5–6%. Look at the first row, because it is the honest one. Kalinchock Hydropower earns 29 paisa per share per year, yet trades at Rs 963; at that pace, the company's profit would need over three thousand years to return your investment. Crest and Guardian, both micro life insurers, sell above Rs 1,200 while earning barely Rs 2–3 per share. Buyers of these shares are earning a 0.03–0.24% return on their money from the business itself, one-twentieth of a humble fixed deposit and betting everything on the price rising further or profits multiplying fifty-fold. To be fair, some of these are young companies whose annualised EPS understates a normal year, and a few may genuinely grow into their prices. But that defence has limits: when ten companies across five different sectors, hydro, insurance, finance, manufacturing, investment, all trade above 400 times earnings simultaneously, the explanation is no longer hidden potential in each company. It is the mood of the market itself. These prices are not valuations; they are votes of faith, cast mostly with other people's example as evidence. And faith-based prices share one property: they hold perfectly right up until the moment everyone asks the same question at once. Notice, too, that Menchhiyam and Dolti appear both here and in Table 1: the same companies are simultaneously among the market's most expensive and its weakest. Finding No. 3: The market is now worth 70 paisa of every rupee Nepal produces On 17 July 2026, NEPSE's total market capitalization, every listed share at market price, stood at Rs 4,600,568.5 million: Rs 4.6 trillion. Nepal's GDP for FY 2082/83 (2025/26), per the National Statistics Office's preliminary estimate, is roughly Rs 6,600 billion. Divide one by the other, and you get the ratio Warren Buffett famously called the best single measure of market valuation: Rs 4,600.6 billion ÷ Rs 6,600 billion ≈ 70% The stock market is now priced at seventy paisa for every rupee the entire country produces in a year, every sack of rice, every hotel bed, every remittance included. Chart 2: NEPSE market cap against GDP, in the caution zone Is 70% a lot? Mature markets like India or the USA run above 100%, but there, the market contains the economy: technology, energy, retail, agriculture giants, everything. Nepal's market does not. Agriculture, about a quarter of GDP, has essentially no listing. Remittances, the engine of household income, are not listed. Trade, transport, construction: barely represented. NEPSE is essentially banks, insurance, microfinance and hydropower. So, a market that mirrors only a slice of the economy is valued at 70% of the whole economy. Comparable frontier markets in South Asia typically sit at 10–25%. Nepal's own comfort zone before 2020 was 30–50%. The last time this ratio raced toward 100%, the 2021 bull run, a long, painful correction followed. Seventy percent is not that peak. But it is the neighbourhood where caution, not euphoria, should be the default mood. Finding No. 4: The value is hiding in the most boring corner of the market Here is the irony of NEPSE in 2026. The sector with the strongest profits, the tightest regulation by Nepal Rastra Bank, decades of dividends, and zero loss-making companies is also the cheapest sector on the entire exchange: commercial banks, median P/E 18.7, median price-to-book 1.4. In fact, only three companies in the whole market trade below their own net worth per share, and two are commercial banks. Table 4: The only three shares priced below their own wealth Company Symbol Price (Rs) Net worth/share (Rs) P/E Nepal Lube Oil NLO 269 559 3.5 Nepal Bank NBL 262 273 11.0 Nepal Investment Mega Bank NIMB 195 200 17.1 Nepal Lube Oil is the market's strangest sight: it earns Rs 78 per share a year, its net worth is Rs 559 per share, and it sells for Rs 269. Less than half its book value, at 3.5 times earnings, in a market where loss-makers fetch four times book. (An anomaly this extreme also deserves homework; thin trading volume or governance issues can keep a cheap stock cheap.) Widen the filter to “profitable and priced under 20 times earnings” and only 18 of 278 companies qualify, ten of them commercial banks: Table 5: The cheapest profitable companies on NEPSE (P/E < 20) Company Symbol Sector Price (Rs) EPS (Rs) P/E P/B Nepal Lube Oil NLO Manufacturing 269 78.19 3.5 0.48 Kumari Bank KBL Comm. Bank 217 21.24 10.8 1.44 Nepal Bank NBL Comm. Bank 262 25.34 11.0 1.02 Prime Commercial Bank PCBL Comm. Bank 235 19.66 12.5 1.43 NMB Bank NMB Comm. Bank 238 16.87 14.7 1.41 Global IME Bank GBIME Comm. Bank 240 15.40 15.5 1.33 Machhapuchhre Bank MBL Comm. Bank 252 15.65 16.1 1.50 Sanima Bank SANIMA Comm. Bank 358 21.45 16.3 1.80 Nabil Bank NABIL Comm. Bank 542 31.36 16.9 2.18 Nepal Investment Mega Bank NIMB Comm. Bank 195 12.29 17.1 1.05 Garima Bikas Bank GBBL Dev. Bank 399 23.21 17.8 2.46 Sahas Urja SAHAS Hydro 653 34.48 18.1 3.53 Nepal Telecom NTC Others 859 46.47 18.3 1.55 Citizens Bank CZBIL Comm. Bank 196 11.23 18.7 1.35 Deprosc Laghubitta DDBL Microfinance 850 44.13 19.1 3.96 Jyoti Bikas Bank JBBL Dev. Bank 340 19.09 19.4 2.27 Grameen Bikas Laghubitta GBLBS Microfinance 731 40.00 19.6 2.66 Shine Resunga Dev. Bank SHINE Dev. Bank 405 20.93 19.7 2.70 Even Nepal Telecom, one of the country's steadiest profit machines, earning Rs 46 per share, sits quietly at 18 times earnings while tiny loss-making companies trade at ten times book. The price-to-book ratio tells the same story from a different door, and it may be the scarier version. If P/E asks “how many years of profit am I paying for?”, P/B asks something even more basic: “how many rupees am I paying for each rupee the company actually has?” A P/B of 1 means you pay exactly what the company is worth on paper; anything above it is a premium you pay for its future. On NEPSE today, that premium has lost all sense of proportion. Of 251 companies with a measurable ratio, 204, four out of every five, trade above three times their book value, 102 trade above five times, and 21 trade above ten times. Exactly one company in the whole market sells below its own worth. Most telling of all: 27 companies that are currently losing money still command more than three times book, investors paying triple for capital that is actively shrinking. The champion is Dibyashwori Hydropower at nearly 61 times book value: its entire net worth is about Rs 5 per share, yet the market pays Rs 282 for it. Why does this matter? Because book value is the floor a shareholder stands on when things go wrong. When a company stumbles, its price does not fall to zero; it falls toward its book value. A market standing at 4.5 times book has, quite simply, built its house four and a half floors above the ground. High P/B does not tell you when the fall comes; it tells you how far down the ground is. Table 6: The ten most expensive shares relative to their own wealth (highest P/B) Company Symbol Sector Price (Rs) Net worth/share (Rs) P/B EPS (Rs) Dibyashwori Hydropower DHPL Hydro 282 5.06 60.9 2.92 Soaltee Hotel SHL Hotels 497 26.73 19.0 6.25 Bhujung Hydropower BJHL Hydro 726 88.82 14.0 −2.44 Sagar Distillery SAGAR Manufacturing 1,680 127.08 13.5 −6.49 Aatmanirbhar Laghubitta ANLB Microfinance 6,262 484.74 13.3 82.49 Hathway Investment Nepal HATHY Investment 706 67.44 13.2 0.95 Corporate Development Bank CORBL Dev. Bank 1,529 139.27 13.1 12.26 Kutheli Bukhari Hydropower KBSH Hydro 1,218 130.20 12.9 9.93 Jhapa Energy JHAPA Others 1,095 102.36 12.8 5.63 SY Panel Nepal SYPNL Manufacturing 1,318 108.94 12.3 3.08 Read this table alongside the P/E table, and a pattern emerges: Hathway and SY Panel appear on both lists, expensive by every measure at once, while Bhujung and Sagar Distillery trade at 13–14 times book while actively losing money. Notice also who is absent: not a single commercial bank appears here. The premium is concentrated precisely where the earnings are thinnest. Why the whole country should care, not just traders? At Rs 4.6 trillion, NEPSE is no longer a casino sealed off from daily life. Its excesses now touch the economy through four doors. Household savings: Millions of demat accounts from every district mean a large chunk of national savings is riding on 54-times-earnings hope. If valuations normalise, families far beyond Kathmandu's trading rooms feel poorer and poorer-feeling people spend less at shops, restaurants, and land offices. Bank credit: Banks lend against shares as collateral. Rising prices make margin loans feel safe, pulling more money into the market, a loop. If prices fall hard, collateral shrinks, margin calls hit, and banks tighten lending to everyone, including genuine businesses. A stock problem quietly becomes a credit problem. Capital allocation: To NEPSE's credit, IPOs have genuinely financed dozens of hydropower projects with ordinary Nepalis' savings; electricity is now one of the fastest-growing pieces of GDP. That is the market doing its job. But the secondary market mostly chases existing shares of weak companies: rupees spent bidding a loss-maker from Rs 300 to Rs 500 build no turbine and hire no worker. The liquidity mirage: With inflation subdued, interest rates low, and remittances strong, surplus money in the banking system has few exciting homes, and it has found NEPSE. Today's market strength reflects liquidity searching for returns as much as company performance. An economy growing near 4% cannot forever justify a market priced at 54 years of median earnings. Either the economy speeds up dramatically, or the market eventually slows down. What an ordinary investor should do with all this Check three numbers before any buy: net worth per share (above Rs 100?), EPS (actually earning?), and P/E (how many years of profit?). Two minutes on the NEPSE website would have flagged every company in Table 1. Treat capital erosion as a warning light, not a death sentence, but ask whether the price already assumes the best possible future that hasn't arrived yet. Remember that cheap-and-boring has historically beaten exciting-and-expensive. Today's excitement is concentrated where the losses are; today's profits are concentrated where nobody is looking. That gap never stays open forever: either the weak get cheaper, or the ignored catch up. Diversify, and stay humble. No single ratio tells everything; a cheap bank may hide bad loans; a loss-making hydro may become a giant. But a portfolio built on real earnings and intact capital starts the race several steps ahead. The bottom lines Nepal's share market is paying premium prices for eroded capital and discount prices for solid earnings, while ballooning to 70% of the nation's GDP on the back of a narrow slice of the real economy. The last visit to this neighbourhood ended in a multi-year correction. Markets reward patience and punish fashion, eventually. The numbers above suggest which side of that trade an ordinary Nepali investor, and the country itself, might want to be on. Disclaimer This article is for informational and educational purposes only and reflects the author's personal analysis of publicly available NEPSE data as of 16–17 July 2026. It is not investment advice or a recommendation to buy, sell, or hold any security. The author is not a licensed investment advisor and does not guarantee the accuracy or completeness of data, which may contain errors at source. Companies are named solely as factual illustrations, without intent to disparage or predict performance. Investing involves risk of loss; readers are solely responsible for their decisions and should consult a licensed advisor. The author accepts no liability for losses arising from this article. By: CA. Tej Prakash Dixit
Nagdhunga - Sisnekhola Tunnel Inaugurated, Open Initially to Emergency Vehicles
The Nagdhunga - Sisnekhola tunnel was officially inaugurated today (27 July 2026) by Infrastructure Development Minister Sunil Lamsal. During this initial stage, entry through the tunnel is strictly limited to emergency and essential vehicles, such as ambulances and fire engines. According to project officials, no tolls or fees will be charged for using the tunnel during its trial testing period. Once regular full scale operations begin, vehicle tolls will range between 60 rupees and 600 rupees, depending on the size and type of the vehicle. Certain restrictions will remain in place to ensure safety and smooth traffic flow. Two wheelers like motorcycles, as well as pedestrians, will not be permitted to use the tunnel.
Gold Price Goes Up; Check Today's Trading Rate
Gold prices have witnessed a moderate gain in the domestic market today, gaining by Rs. 1400 per tola to settle at Rs. 288,500 per tola, up from the previous rate of Rs. 287,100 per tola. The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) reported that Tejabi gold price also rose by Rs. 1400 per tola to reach Rs. 287,800 per tola, compared to Rs. 286,400 per tola on the previous day. Similarly, silver prices moved in the same direction, rising by Rs. 35 per tola to Rs. 4,445 per tola from Rs. 4,410 per tola on the previous day.
NEPSE Pre-Open Session Sees Significant Dip, Signaling Bearish Start to the Week
The Nepal Stock Exchange (NEPSE) commenced the trading week on a cautious note, with its pre-open session witnessing a notable decline. On the first trading day of the week, the NEPSE index shed 18.19 points, settling at 2716.41. This downturn marks a significant shift from the previous trading session last Friday, where the index had closed positively, gaining 7.88 points to reach 2734.60. The Sensitive Index, which tracks the performance of 'A' class companies, also mirrored this sentiment, dropping by 4.07 points in the pre-open session. The pre-open session, often considered a crucial barometer for the day's market sentiment, saw a total of 124,418 units of shares traded across 115 transactions involving 67 different stocks. The total turnover generated during this brief window amounted to NPR 6,789,253.42. A closer look at the individual stock performance reveals a predominantly bearish trend: while 20 stocks managed to register gains, a larger proportion of 42 stocks experienced a decline in their prices. The remaining 5 stocks maintained their previous closing prices, indicating stability amidst the broader market movement. This early dip in the NEPSE index suggests a potential shift in investor sentiment as the market opens for the week. While the pre-open session's volume and turnover are typically lower than the main trading hours, the direction it sets often influences the broader market's trajectory for the day. Investors will be keenly observing the main trading session to ascertain if this initial bearish momentum persists or if the market finds support later in the day. Factors such as profit-booking after previous gains, prevailing liquidity conditions in the banking system, or any new macroeconomic indicators could be contributing to this cautious start. For investors, such pre-open movements highlight the importance of staying informed and agile. A significant number of declining stocks compared to gaining ones indicates that selling pressure might be building up. While it's too early to draw definitive conclusions for the entire week, the pre-open session's performance serves as a vital early warning signal. Market participants will be looking for clearer trends and volume confirmation during the regular trading hours to make informed decisions. This initial setback underscores the dynamic nature of the NEPSE market and the need for continuous monitoring of both domestic and international economic cues that might impact investor confidence.
Nepal Rastra Bank to Withdraw NPR 30 Billion in Liquidity to Stabilize Market
Nepal Rastra Bank (NRB), the central monetary authority, has announced its intention to withdraw a significant NPR 30 billion from the financial market. This strategic move, executed through a 179-day deposit collection instrument, aims to manage the prevailing excess liquidity within the banking system and maintain stability in interest rates. The central bank has invited bids from eligible 'A', 'B', and 'C' class banks and financial institutions to participate in this crucial open market operation. The decision to mop up liquidity comes as part of NRB's ongoing efforts to fine-tune the financial system. Excess liquidity, while seemingly beneficial, can lead to inflationary pressures and erratic interest rate fluctuations, potentially destabilizing the economy. By withdrawing funds, NRB effectively reduces the amount of money available for lending in the market, thereby influencing interbank rates and, subsequently, the broader lending and deposit rates offered by commercial banks. This mechanism is a standard tool in the central bank's arsenal, alongside other instruments like the Standing Deposit Facility (SDF), to achieve its monetary policy objectives. The bidding process for this 179-day deposit collection instrument is scheduled for today, Monday, via an online purchase system. The interest rate for these deposits will be determined through a competitive bidding process, where participating financial institutions will quote their desired rates. NRB's policy dictates that allocations will prioritize bids offering the lowest interest rates, ensuring cost-effectiveness for the central bank while effectively absorbing the targeted liquidity. The principal amount and accrued interest for these deposits are slated for repayment on Magh 8, 2083 BS (approximately January 21, 2027). Participation in the bidding is restricted to financial institutions licensed by NRB, specifically commercial banks, development banks, and finance companies. The minimum bid amount has been set at NPR 100 million, with subsequent bids required to be in multiples of NPR 50 million, up to the total invited amount. This structured approach ensures broad participation while maintaining an organized bidding environment. According to NRB's open market operations procedure, the central bank is empowered to utilize long-term deposit collection instruments for up to six months under structural open market operations whenever long-term excess liquidity is identified in the financial market. This provision allows the Transaction Operations Committee to proactively manage market interest rates and address systemic liquidity imbalances. NRB has frequently leveraged this framework to maintain financial stability, demonstrating its commitment to a balanced and predictable monetary environment. For investors, this action by NRB signals a continued focus on monetary discipline. While a reduction in liquidity might slightly tighten credit conditions in the short term, it ultimately contributes to a healthier economic environment by curbing inflation and fostering stable interest rates. This stability is crucial for long-term investment planning and overall economic growth. Financial institutions, in turn, will need to adjust their liquidity management strategies, potentially impacting their short-term investment decisions and interbank market activities. The move underscores NRB's vigilant approach to macroeconomic management, aiming to create a conducive environment for sustainable economic development in Nepal.
Sanima Bank Reports Robust Q4 Performance, Net Profit Surges by 38%
Sanima Bank Limited (SANIMA) has unveiled its unaudited financial results for the fourth quarter of the last fiscal year (FY 2079/80), showcasing a significant improvement across key financial indicators. The report highlights a substantial increase in core income, net profit, and an enhanced capacity for dividend distribution, positioning the bank favorably for its shareholders. **Strong Profitability Growth:** The bank recorded a net profit of NPR 3.55 billion by the end of FY 2079/80. This represents an impressive 38.01% surge compared to the NPR 2.57 billion achieved in the corresponding period of the previous fiscal year. This robust growth in net profit underscores the bank's effective operational strategies and strong financial management. **Key Income Streams Bolstered:** Sanima Bank's net interest income, a crucial measure of its core lending operations, expanded from NPR 6.35 billion in the prior fiscal year to NPR 6.96 billion. This upward trend indicates healthy growth in its loan portfolio and efficient management of interest-earning assets. Furthermore, the bank's net fee and commission income also saw a positive trajectory, rising to NPR 1.32 billion from NPR 1.19 billion in the previous year. This diversification of income sources contributes to the bank's overall financial resilience. The operational efficiency is further reflected in the operating profit, which climbed from NPR 3.57 billion to a commendable NPR 5.16 billion, demonstrating improved cost management and revenue generation capabilities. **Enhanced Dividend Potential:** A key takeaway for investors is the significant enhancement in the bank's dividend-paying capacity. Following regulatory adjustments, the distributable profit as of Ashar end (mid-July) reached NPR 2.83 billion, a notable increase from NPR 2.10 billion in the previous fiscal year. This translates to a distributable profit per share of NPR 20.85 based on the current paid-up capital, providing a strong foundation for attractive dividend payouts to shareholders. This metric is particularly appealing to investors seeking consistent returns. **Balance Sheet Expansion:** Sanima Bank also demonstrated considerable growth in its business scale. The bank's paid-up capital, including 8.25% irredeemable non-cumulative preference shares, stands at NPR 15.58 billion (NPR 15,581,525,414). Total deposits witnessed a healthy increase, growing from NPR 223 billion to NPR 249 billion, reflecting strong public trust and effective deposit mobilization strategies. Concurrently, loans extended to customers expanded from NPR 176 billion to NPR 195 billion, indicating a growing demand for credit and the bank's active participation in economic development. Consequently, the bank's total asset base swelled to NPR 291 billion, signifying overall balance sheet strength and expansion. **Improved Asset Quality and Future Outlook:** In terms of asset quality, the bank showed commendable improvement in risk management. Non-performing loans (NPLs) decreased from 3.01% to 2.87%, while net non-performing loans were brought down to 1.02%. This reduction in NPLs is a positive sign, indicating effective credit assessment and recovery mechanisms. Despite these strong results, the bank acknowledges several challenges, including a declining interest rate spread (currently at 3.39%), a generally sluggish business environment, and the ongoing imperative for digital transformation. To navigate these challenges and ensure sustainable growth, Sanima Bank has outlined strategic priorities. These include expanding its digital services, optimizing its deposit mix, and implementing effective loan recovery strategies. By focusing on these areas, Sanima Bank aims to solidify its market position and continue delivering value to its stakeholders in the evolving financial landscape.
Sunsari Imposes Indefinite Curfew Following Fatal Clash, Raising Concerns for Regional Stability
The Sunsari district in eastern Nepal has been placed under an indefinite curfew following a tragic incident in Dewanganj where one individual died from a police bullet during efforts to control a clash. The District Administration Office of Sunsari announced the imposition of the curfew across several key areas, effective from 7 AM until further notice, underscoring the gravity of the situation and the immediate need to restore public order. The areas specifically affected by the curfew include the bustling market zones of Harinagar, Bhutaha, Kaptanganj, Ghuski, and Dewanganj. These regions are vital hubs for local commerce and daily activities, and the imposition of such a restrictive measure is expected to significantly disrupt the lives of residents and the operations of local businesses. The immediate cessation of normal economic activities in these areas will undoubtedly impact daily wage earners, small traders, and local service providers, leading to a temporary but significant economic slowdown in the affected localities. The incident that precipitated the curfew occurred late last night, around 10:30 PM, in Kaptanganj, Dewanganj Rural Municipality-3. Police intervened to quell a violent confrontation between two groups, during which shots were fired. Tragically, a 30-year-old resident, identified as Maheta from the same ward, succumbed to a police bullet. The clash also resulted in a significant number of injuries, with 18 individuals reportedly wounded, including nine police officers, highlighting the intensity and volatile nature of the confrontation. The precise cause and instigators of the initial clash are under investigation, and authorities are working to de-escalate tensions and prevent further violence. For investors and businesses operating or considering investments in the Sunsari region, such events introduce an element of uncertainty and risk. While the immediate focus is on restoring peace and ensuring public safety, prolonged civil unrest can have tangible economic repercussions. Local markets, which rely heavily on daily foot traffic and the smooth flow of goods, will undoubtedly experience a downturn. Small and medium-sized enterprises (SMEs) in the affected areas face immediate losses due to forced closures and reduced economic activity, potentially impacting their short-term viability and cash flow. Furthermore, disruptions to transportation and supply chains, even localized ones, can ripple through the regional economy. Businesses dependent on the movement of raw materials or finished products through these areas may face delays and increased operational costs. From a broader economic perspective, sustained instability can erode investor confidence, making the region less attractive for new capital injection and hindering long-term development initiatives. The perception of a stable and secure environment is paramount for fostering economic growth and attracting both domestic and foreign investment. Any prolonged period of unrest could deter future projects and impact existing ventures' profitability. The Sunsari District Administration Office is tasked with the critical responsibility of managing the situation, ensuring law and order, and facilitating a return to normalcy. The effectiveness and speed with which peace is restored will be crucial in mitigating the economic fallout and reassuring the public and business community. Stakeholders will be closely monitoring developments, hoping for a swift resolution that prioritizes dialogue and community engagement to address underlying tensions, thereby safeguarding the region's economic prospects. This incident serves as a stark reminder of how social stability is intricately linked to economic well-being, even in specific geographical pockets. While the immediate impact might be localized, the broader implications for investor sentiment and regional development warrant careful observation.
Nepal's Silver Market: From Unprecedented Boom to Sudden Bust – A Deep Dive into Investor Sentiment and Economic Impact
The Nepali economy witnessed a remarkable phenomenon in the past fiscal year, as the "white metal," silver, experienced an unprecedented surge in demand, only to see its "craze" abruptly halt. This dramatic shift offers valuable insights into investor behavior, market dynamics, and the broader economic landscape. The narrative began when gold prices soared to an historic high of NPR 340,000 per tola, pushing the precious yellow metal beyond the reach of the average citizen. In response, a significant portion of the population turned their attention to silver, perceiving it as a more accessible and secure alternative for both investment and ceremonial jewelry. This newfound fascination with silver was palpable across the nation. From the bustling streets of New Road in Kathmandu to the main markets of provincial cities, long queues of eager customers became a common sight outside jewelry stores. The demand was so intense that shops, which previously struggled to sell a few kilograms of silver monthly, began reporting daily sales of 10 to 20 kilograms. This surge was largely driven by a psychological effect: the belief that investing in physical metal offered greater security than traditional bank savings. A testament to this extraordinary demand was the performance of a single entity, Himalayan Bullion, which alone facilitated silver transactions worth an astounding NPR 9.78 billion within a mere nine-month period, astonishing market observers. Analyzing the import data from the Department of Customs for Fiscal Year 2082/83 reveals the fascinating trajectory of silver's journey. The import graph illustrates a rapid escalation, starting modestly in Shrawan (July-August) with 1,620 kilograms. By Bhadra (August-September), imports had surged by an impressive 180% to 4,540 kilograms, signaling the market's awakening. The festive season of Dashain and Tihar in Ashoj (September-October) further fueled this growth, with imports climbing another 184% to exceed 12,910 kilograms. The peak was reached in Magh (January-February), a period synonymous with the wedding season and heightened investment activity, where an all-time high of 22,790 kilograms (over 22 tons) of silver was imported, valued at more than NPR 9.13 billion. This period truly represented a "golden era" for the silver market. Comparing these figures with the preceding fiscal year (2081/82) underscores the sheer magnitude of this boom. In terms of quantity, total silver imports for FY 2082/83 reached 104,290 kilograms, a staggering 108.36% increase from the 50,053 kilograms imported in FY 2081/82. Even more striking was the increase in value: from NPR 7.02 billion in FY 2081/82, the import value skyrocketed by 366.11% to NPR 32.74 billion in FY 2082/83. However, the momentum that carried silver to its peak in Magh began to wane dramatically from Falgun (February-March) onwards. Imports plummeted to 9,765 kilograms in Falgun, further dropping to 4,457 kilograms in Chaitra (March-April). By Baisakh (April-May), the market hit its lowest point, with imports shrinking to a mere 1,322 kilograms, representing a 70% decline from the previous month. Several factors contributed to this abrupt slowdown. The primary reason was the significant volatility and subsequent decline in international silver prices, which instilled fear among investors. The psychological impact of falling prices led to a "wait and see" approach, with many fearing further drops and halting new investments. Additionally, the intense buying spree from Ashoj to Magh meant that many individuals had already fulfilled their immediate needs and investment capacities, leading to a natural saturation of demand in subsequent months. Culturally, Nepal's silver consumption is not uniform throughout the year. Data consistently points to the five-month period from Ashoj to Magh as the primary season. This is largely due to major festivals like Dashain and Tihar, particularly 'Dhanteras,' where purchasing silver coins and idols is considered auspicious, symbolizing the welcoming of prosperity. Furthermore, the months of Mangsir, Poush, and Magh are peak wedding seasons in Nepal. With gold prices remaining prohibitively high, silver has increasingly become the preferred choice for dowries, gifts, and bridal jewelry, directly contributing to the peak demand observed in Magh. Despite the market's eventual slowdown and the outflow of foreign currency for imports, the silver boom proved to be a significant boon for the government's coffers. Revenue generated from silver imports saw a substantial increase. In FY 2081/82, the government collected NPR 76.46 million from silver. This figure surged to an impressive NPR 3.34 billion in FY 2082/83, marking a remarkable 337.13% increase in revenue collection from silver imports alone. Currently, the silver market has returned to a more normalized rhythm, settling after the "mania" of Magh and the "emptiness" of Baisakh. This period has served as a crucial learning experience for Nepali investors, who are now demonstrating greater awareness of the inherent volatility and dynamics of the metal market, moving beyond traditional savings approaches. While the demand for silver is unlikely to vanish entirely, especially with gold prices remaining elevated, a return to the frenzied buying witnessed in Magh would likely require either a further substantial increase in gold prices or a significant drop in silver prices followed by a clear indication of future appreciation. In essence, Fiscal Year 2082/83 stands as a historic chapter for Nepal's silver market, delivering billions in state revenue while imparting invaluable lessons to investors about the transient nature of speculative market trends.
Nepal's Nagdhunga Tunnel Road Officially Opens, Ushering in a New Era of Connectivity and Efficiency
The long-awaited Nagdhunga Tunnel Road Project is officially commencing operations today, Monday, Shrawan 11 (July 26). This landmark infrastructure project, poised to revolutionize connectivity between Kathmandu and the rest of Nepal, marks a significant milestone in the nation's development journey. The formal inauguration ceremony, scheduled for 11 AM, will be graced by the Minister of Physical Infrastructure, Sunil Sharma, alongside the esteemed head of the Japan International Cooperation Agency (JICA), underscoring the collaborative spirit behind this ambitious undertaking. Stretching an impressive 2,680 meters, the tunnel connects Totepakha in Kathmandu to Sisnekhola in Dhading, offering a crucial alternative to the existing winding and often congested Prithvi Highway. This strategic bypass is expected to dramatically reduce travel time, enhance fuel efficiency, and alleviate traffic bottlenecks, thereby boosting economic activities and facilitating smoother movement of goods and people. While the project was formally inaugurated by then-Prime Minister K.P. Sharma Oli on Kartik 4, 2076 BS (October 21, 2019), its full operationalization today signifies the culmination of years of dedicated effort and international partnership. The construction of the Nagdhunga Tunnel Road was undertaken by the Japanese Hazama Ando JV, leveraging advanced engineering expertise. Originally targeted for completion within three and a half years, the project faced several delays, necessitating four extensions to its deadline. These challenges, often inherent in large-scale infrastructure projects, led to a significant cost overrun. Initially estimated at NPR 22 billion, the final cost has surpassed NPR 30 billion. The project's financing structure highlights a strong international collaboration, with JICA providing a substantial loan of NPR 22 billion, complemented by the Nepal Government's investment to cover the remaining expenses. Upon its initial opening, the tunnel will prioritize essential vehicles, with restrictions on motorcycles, petrol tankers, and gas bullets. This phased approach aims to ensure a smooth transition and optimal management of traffic flow. A modern toll collection system has been implemented to ensure efficiency and transparency. Users will be required to affix an N-Tag (RFID) sticker to their vehicles, linked to their respective bank accounts. As vehicles pass through the toll booths, the system will automatically deduct the applicable fee, promoting a cashless and streamlined experience. The toll structure has been meticulously designed, with separate charges for vehicles entering and exiting Kathmandu, reflecting the varying traffic patterns and economic considerations. For cars, vans, pickups, and jeeps, the toll will be NPR 65 for entry into Kathmandu and NPR 60 for exit. Minibuses, mini-tippers, and smaller trucks will incur a charge of NPR 115 for entry and NPR 80 for exit. Larger vehicles, including big buses and heavy trucks, will pay NPR 260 for entry and NPR 200 for exit. Multi-axle trucks and vehicles carrying heavy equipment will face the highest tolls, set at NPR 600 for entry and NPR 250 for exit. These differentiated rates aim to manage traffic volume and ensure equitable contribution towards the tunnel's maintenance and operational costs. The Nagdhunga Tunnel Road is more than just a passage; it represents a critical step towards modernizing Nepal's transportation infrastructure. Its operationalization is expected to have far-reaching economic benefits, from reducing logistical costs for businesses to enhancing tourism by making travel more convenient. For investors, this project signals Nepal's commitment to improving its foundational infrastructure, which is crucial for fostering a conducive environment for economic growth and attracting further investments in various sectors. The successful completion and opening of such a complex project, despite challenges, underscore the nation's growing capacity for large-scale development and its strategic vision for a more connected and prosperous future.
Nepal's International Trade Performance: Fiscal Year 2082/83 Review
Nepal recorded a total foreign trade volume of Rs. 2,411.66 billion in Fiscal Year (FY) 2082/83, representing a 15.88 percent increase compared to the previous fiscal year. Let us take a closer look at Nepal's international trade performance during the fiscal year. 1. Overall Trade Performance Nepal's total foreign trade volume reached Rs. 2,411.66 billion in FY 2082/83. Of this, imports amounted to Rs. 2,096.37 billion, marking a 16.20 percent increase compared to the previous fiscal year. On the other hand, exports totaled Rs. 315.29 billion, an increase of 13.81 percent from the previous fiscal year's export value. As a result, Nepal recorded a trade deficit of Rs. 1,781 billion, compared to Rs. 1,517 billion in the previous fiscal year. The share of exports in total trade declined by 1.79 percentage points to 13.07 percent, while the share of imports in total trade increased to 86.93 percent. 2. Imports During the review period, Nepal's imports increased by 16.20 percent, reaching Rs. 2,096.37 billion, up from Rs. 1,804 billion in the previous fiscal year. The following are the top five imported commodities by import value: 3. Exports During the review period, Nepal's exports increased by 13.81 percent, reaching Rs. 315.29 billion, compared to Rs. 277.03 billion in the previous fiscal year. The following are the top five exported commodities by export value: This growth was achieved despite ongoing global geopolitical uncertainty. One of the major contributing factors was the rise in global commodity prices caused by geopolitical tensions, which increased the monetary value of trade even when the physical volume of traded goods is not changed so much. Beside that internal politics and election has boosted fuels imports and other consumption in nation and other factors leads in spike in trade volume.
Nepal's Gold and Silver Markets Surge: A Deep Dive into Today's Price Movements and Investor Implications
Nepal's precious metals market experienced a notable upward trajectory today, with both gold and silver registering significant gains. This movement reflects a dynamic interplay of global and domestic factors, prompting investors and consumers alike to closely monitor the evolving landscape of commodity prices. Standard gold, often referred to as 'fine gold,' saw a substantial increase of Rs. 1,600 per tola, reaching a new trading benchmark of Rs. 287,100 per tola. This marks a considerable jump from its previous closing price of Rs. 285,500 per tola. Similarly, Tejabi gold, which is slightly less pure but widely traded, mirrored this upward trend, also climbing by Rs. 1,600 per tola to settle at Rs. 286,400 per tola, up from Rs. 284,800 per tola. The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), the authoritative body for precious metals pricing in the country, confirmed these figures, underscoring the transparency and reliability of the reported rates. The surge wasn't limited to gold alone. Silver prices also followed suit, albeit with a more modest gain. The white metal appreciated by Rs. 60 per tola, bringing its trading value to Rs. 4,410 per tola, an increase from its prior rate of Rs. 4,350 per tola. These movements collectively indicate a renewed interest or underlying pressure driving up the value of precious metals in the domestic market. For investors, the consistent upward movement in gold prices often signals a flight to safety amidst economic uncertainties. Gold has historically served as a reliable hedge against inflation and currency devaluation. In a global economic climate characterized by fluctuating interest rates, geopolitical tensions, and inflationary pressures, investors frequently turn to gold as a store of value. The current domestic surge could be influenced by a combination of international spot price movements, a weakening Nepali Rupee against the US Dollar, or even increased local demand driven by upcoming festive seasons or a general sentiment of economic caution. The role of FENEGOSIDA is crucial in this context. By providing daily updates on gold and silver prices, the association ensures market transparency and helps both dealers and consumers make informed decisions. Their reported rates are the benchmark for transactions across the country, reflecting the intricate balance of supply and demand, import costs, and international market dynamics. From a broader economic perspective, rising gold prices can have several implications for Nepal. As a significant importer of gold, a sustained increase in prices translates to a higher import bill, potentially straining the nation's foreign exchange reserves. This could, in turn, impact the overall balance of payments and the stability of the Nepali Rupee. Conversely, for individuals holding gold, the appreciation enhances their asset value, though it simultaneously makes new purchases more expensive for the average consumer, particularly for jewelry. Looking ahead, the trajectory of gold and silver prices will continue to be influenced by a confluence of global macroeconomic indicators, central bank policies, and geopolitical events. Investors should remain vigilant, understanding that while precious metals offer a degree of stability, their prices are not immune to volatility. Diversification and a long-term perspective remain key strategies for navigating the complexities of the commodity market. The current upward trend serves as a pertinent reminder of gold's enduring appeal as a critical component of a well-rounded investment portfolio, especially in times when traditional financial markets face headwinds.