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The Rhine River: A New Barometer for European Stock Markets as Climate Risk Reshapes Investment
Historically, the global financial markets have danced to the tune of central bank pronouncements, government policies, and geopolitical shifts. Investors meticulously tracked interest rate hikes or cuts by the US Federal Reserve, decisions from the European Central Bank, and inflation figures, believing these to be the primary determinants of market direction. However, the summer of 2026 (as per the original article, though likely referring to a recent past event like 2022) has introduced a new, unexpected, yet profoundly impactful indicator: the water level of the Rhine River. It might sound peculiar – how could the dwindling water levels of a river send ripples through the sophisticated world of stock markets? The answer lies deep within the intricate industrial fabric of Northern Europe, particularly Germany. The Rhine, a majestic waterway stretching approximately 1,230 kilometers from Switzerland to the Netherlands, is not just a scenic river; it is Europe's busiest inland shipping lane, a vital artery for commerce and industry. Germany's colossal chemical, steel, automotive, and energy sectors, along with its bustling port operations, are inextricably linked to this river. Annually, millions of tons of essential commodities – coal, petroleum products, chemicals, iron, steel, fertilizers, grains, and various industrial raw materials – are transported along its currents. The critical juncture arrived in late July 2026 when, amidst scorching summer heat, the Rhine's water level near Kaub plummeted to a mere 25 centimeters. This alarming depth renders many cargo vessels unable to operate at full capacity. Some ships are forced to carry less than half their usual load, while others must divert their cargo to more expensive and less efficient modes of transport, such as rail and road. This immediate operational challenge triggers a cascading series of economic consequences, a "ripple effect" that quickly reaches the stock market. The initial impact is felt in soaring shipping costs. As river transport becomes constrained, the cost of moving raw materials escalates for major industrial players like BASF in the chemical sector, steel manufacturers, energy companies, and the food industry. This increase in input costs inevitably squeezes profit margins. Anticipating reduced profitability, financial analysts revise their earnings projections downwards, prompting investors to re-evaluate the valuation of shares in these affected companies. Consequently, stock prices come under significant pressure. This economic chain reaction, from a drying river to market volatility, unfolds in a clear sequence: 1. **River Dries**: Water levels drop due to drought or extreme heat. 2. **Reduced Capacity**: Ships cannot carry full loads, or navigation becomes impossible. 3. **Higher Transport Costs**: Industries resort to more expensive alternative transport methods. 4. **Supply Chain Delays**: Raw materials reach factories slower, impacting production schedules. 5. **Increased Production Costs**: Higher logistics costs directly translate to elevated manufacturing expenses. 6. **Profit Margin Erosion**: Companies face reduced profitability due to higher costs and potential production shortfalls. 7. **Analyst Revisions**: Financial analysts downgrade earnings forecasts for affected companies. 8. **Investor Revaluation**: Investors reassess the intrinsic value of these companies' shares. 9. **Stock Price Pressure**: Share prices decline as market sentiment turns negative. This profound shift has compelled major European investment funds to integrate weather patterns and river conditions into their sophisticated risk assessment models. The sectors most vulnerable to these climate-induced disruptions include: * **Chemical Industry**: Germany's chemical sector, one of Europe's largest, heavily relies on the Rhine for transporting liquid chemicals and raw materials. Increased shipping costs directly inflate production expenses. * **Steel Industry**: For heavy raw materials like iron ore and coal, river transport is the most cost-effective. A decline in water levels forces a costly reliance on rail and road. * **Energy Sector**: Disruptions in the transport of coal and other fuels pose significant challenges for power generation plants, potentially impacting energy supply and prices. * **Agriculture and Food Industry**: The increased cost of transporting fertilizers, animal feed, grains, and other agricultural raw materials affects the entire food processing supply chain. Today, international investment funds are not merely scrutinizing annual reports; they are diligently studying Climate Risk Assessments. Questions regarding a company's dependency on river transport, the availability of alternative logistics, and its resilience to drought conditions are now considered as crucial as traditional metrics like debt, sales, and profit. This marks the dawn of a new investment era where "Climate Risk" stands alongside "Interest Rate Risk" as a paramount concern. Reports from sources like Reuters confirm that the dwindling water levels in the Rhine due to extreme heat have indeed led to increased industrial shipping costs, strained energy systems, and a rapid acceleration in climate-risk-aware investing. The market for "Catastrophe Bonds," financial instruments designed to transfer specific risks (like natural disasters) from issuers to investors, has expanded significantly in recent years, underscoring the growing financialization of climate risk. This European experience carries significant relevance for Nepal. The nation's major rivers – Koshi, Gandaki, and Karnali – are the lifeblood of its economy, underpinning hydropower generation, irrigation for agriculture, tourism, and various industries. Should climate change induce substantial alterations in their flow patterns, the ripple effects could be devastating, impacting agricultural output, the quality of bank loan portfolios, insurance claims, energy supply, and ultimately, the stability and growth of the capital market. The global economy is imparting a crucial lesson: climate change is no longer solely an environmental issue; it has evolved into a fundamental indicator for financial markets. As a popular saying among European investors now goes, "First we looked at interest rates, now we also look at the river." This encapsulates a profound paradigm shift, urging investors worldwide to broaden their analytical horizons to encompass the intricate and increasingly volatile interplay between environmental factors and financial performance.
NEPSE Concludes Week with a 1.32% Decline Amidst Mixed Sectoral Performance
The Nepal Stock Exchange (NEPSE) concluded the trading week with a notable downturn, as its benchmark index registered a decline of approximately 1.32 percent. Closing at 2650.09 points, the index shed 35.45 points from its previous week's close of 2685.54 points. Out of the five trading days this week, the market experienced a downward trend on four days, managing to post gains on only one session. Beyond the headline index, other key market indicators also reflected the prevailing bearish sentiment. The Sensitive Index, which tracks the performance of 'A' class companies, decreased by 6.57 points. Similarly, the Float Index, representing freely tradable shares, saw a dip of 2.80 points, while the Sensitive Float Index also fell by 2.58 points. These movements collectively underscore a broad-based weakness across various segments of the market, impacting both large-cap and more liquid stocks. Trading activity during the week presented a mixed picture. While the overall market turnover experienced a slight contraction, the volume of shares traded and the number of transactions actually increased. The daily average turnover for the week stood at NPR 4.29 billion, a marginal decrease of 1.05 percent compared to the previous week's average of NPR 4.33 billion. However, the daily average number of shares traded surged by 5.69 percent, and the daily average transaction count rose by 7.42 percent. This divergence suggests that while investors were engaging in more frequent trades and exchanging a higher quantity of shares, the average value per transaction might have decreased, or there was a shift towards lower-priced stocks, indicating a cautious approach or increased retail participation in smaller-cap segments. The market's decline also had a direct impact on its overall capitalization. The total market capitalization of NEPSE decreased by approximately 1.5 percent, shrinking by NPR 60 billion to settle at NPR 45.54 trillion from NPR 46.15 trillion at the close of the previous week. This reduction in market wealth reflects the erosion of investor portfolios during the bearish period. An analysis of the thirteen sub-indices revealed a stark contrast in sectoral performance. Only two sub-groups managed to post gains, while the remaining eleven registered declines. The Hydropower sector showed resilience, with its index increasing by 0.38 percent, adding 14.00 points to close at 3729.96. The Trading sector also saw a modest increase of 0.25 percent. This selective strength in certain sectors could be attributed to specific company news, investor interest in defensive plays, or anticipation of future developments within those industries. Conversely, the Manufacturing and Processing sub-group bore the brunt of the market's downturn, recording the steepest decline of 2.49 percent. Its index plummeted by 265.43 points to 10394.12, making it the biggest loser both in percentage and absolute terms. This significant drop indicates potential challenges or a lack of investor confidence in this crucial industrial segment. In terms of new listings, the week saw the addition of 529,514,381.60 units of securities to NEPSE. This included bonus shares from Nepal Life Insurance and units from four mutual funds: Siddhartha Equity Fund 2, Sanima Equity Fund 2, LS Horizon 12, and Reliable Samriddhi Yojana 2. Such listings typically enhance market liquidity and provide new investment avenues for market participants. Individual stock performance highlighted significant volatility. Everest Color emerged as the top gainer, with its share price soaring by 27.17 percent, closing at NPR 1665 from NPR 1309.30. Solu Hydropower also saw a substantial increase of over 17.5 percent. On the losing end, Reliance Spinning Mills experienced the sharpest decline, with its share price falling by 12.64 percent. Samudayik Laghubitta Bittiya Sanstha also faced a significant drop of over 9.5 percent. Floorsheet analysis, a crucial tool for active traders, indicated specific trends in buying and selling interests. Taragaon Regency Hotel, Upper Solu Hydro Electric Company, and Multipurpose Finance Company were among the most popular buy stocks, suggesting strong accumulation interest. Conversely, Laxmi Laghubitta Bittiya Sanstha, Modi Energy, and Maya Khola Hydropower Company were identified as popular sell stocks, indicating profit-taking or increased selling pressure. These insights are vital for short-term trading strategies and understanding immediate market sentiment for particular scrips. Overall, the week concluded with a cautious sentiment dominating the NEPSE. While the overall index declined, the increased transaction activity and selective sectoral gains suggest a market grappling with mixed signals. Investors are advised to closely monitor upcoming economic indicators and corporate announcements to navigate the evolving market landscape effectively.
Nepal's Gold Market Sees Sharp Surge: Prices Jump Rs 12,900 in a Single Week
Nepal's gold market has witnessed a remarkable surge in prices, with the precious metal climbing by an astounding Rs 12,900 per tola within just one week. This significant upward movement has pushed the price of fine gold to Rs 296,900 per tola by the end of the trading week, marking a substantial gain for gold holders and a notable development for investors and consumers alike. According to data released by the Nepal Federation of Gold and Silver Dealers' Association, the week began with gold trading at Rs 284,000 per tola on Saturday, Shrawan 16. The market remained stable for the initial two days of the trading week, with prices holding firm at Rs 284,000 per tola on both Sunday, Shrawan 17, and Monday, Shrawan 18. However, this stability was short-lived. On Tuesday, Shrawan 19, there was a minor dip, with gold prices falling by Rs 200 to Rs 283,800 per tola. The real momentum began on Wednesday, Shrawan 20, when gold prices experienced a sharp increase of Rs 4,200 in a single day, reaching Rs 288,000 per tola. The upward trend continued with even greater intensity on Thursday, Shrawan 21, as prices soared by an impressive Rs 8,000, bringing the value to Rs 296,000 per tola. The week concluded with another increment on Friday, Shrawan 22, where gold added Rs 900, settling at its new high of Rs 296,900 per tola. This dramatic increase in local gold prices is largely reflective of broader international trends, where gold has been gaining traction as a safe-haven asset amidst global economic uncertainties, inflationary pressures, and geopolitical tensions. Investors often flock to gold during periods of market volatility, seeking to preserve wealth against currency depreciation and stock market fluctuations. The 'tola,' a traditional unit of mass in South Asia equivalent to approximately 11.66 grams, is the standard measure for gold trading in Nepal. Several factors contribute to the price dynamics in the Nepali market. Globally, concerns over persistent inflation, the trajectory of interest rates by major central banks, and ongoing geopolitical conflicts have bolstered gold's appeal. Locally, the Nepali Rupee's peg to the Indian Rupee means that domestic gold prices are also influenced by the INR's performance against the US Dollar, as well as India's import policies and demand. Furthermore, seasonal demand, particularly during festive seasons and wedding periods, can also exert upward pressure on prices. For investors, this surge underscores gold's role as a crucial component of a diversified portfolio, offering a hedge against economic instability. While the rapid appreciation is beneficial for those holding gold, it presents a challenge for consumers looking to purchase jewelry or make new investments, as the cost becomes significantly higher. The sustained upward trajectory suggests that the factors driving global gold prices are likely to persist, making it a key commodity to watch for economic indicators and investment strategies in the coming weeks.
NEPSE Index Dips By 4.05 Points on the Last Trading of This Week
The Nepal Stock Exchange (NEPSE) recorded a single-digit loss today, losing by 4.05 points (0.15%) to close at 2,650.09. This follows a loss of 13.82 points in the previous trading session. The benchmark index opened at 2652.91 and fluctuated between an intraday high of 2,657.44 and a low of 2,641.93 before settling at the close. Total turnover for the day amounted to Rs. 3.77 Arba, with 10,313,979 shares traded across 334 companies through 46,912 transactions. The total market capitalization stood at Rs. 45.54 Kharba, with a float market capitalization of Rs. 15.36 Kharba. Solu Hydropower Limited (SOHL) topped the turnover chart, recording transactions worth Rs. 39.25 crores. The company’s stock closed at Rs. 688.00. Aatmanirbhar Laghubitta Bittiya Sanstha Limited (ANLB) hit the upper cirucit with a 8.60% gain. The stock closed at Rs. 5,999.00. Meanwhile,Upper Lohore Khola Hydropower Company Limited (ULHC) recorded the Highest fall, falling by 6.93 %. The last traded price of the company was Rs. 379.00. Among sectors, the Mutual Fund recorded the highest gain, gaining by 0.51%, while the Finance Index recorded the highest loss, down 0.70%. Top Buyer Broker's Top 10 Bought Companies Top Seller Broker's Top 10 Sold Companies
Karnali Development Bank CEO Among Three Arrested in Banking Offense Case
In a significant development underscoring Nepal's commitment to financial accountability, the Chief Executive Officer (CEO) of Karnali Development Bank, Niraj Bikram Shah, along with two other individuals, has been apprehended in connection with banking offenses. The arrests were made in Nepalgunj on Friday, as confirmed by Superintendent of Police Angur GC, the chief of Banke District Police Office. The two other individuals arrested have been identified as 39-year-old Deepa Thapa and 43-year-old Subhechha Shrestha, both residents of Nepalgunj Sub-Metropolitan City-12, which is also the residential area of CEO Shah. The trio had reportedly been absconding in relation to the banking offense charges, prompting a concerted effort by law enforcement agencies to bring them to justice. Following their arrest, they were promptly presented before the Nepalgunj bench of the Tulsipur High Court for further legal proceedings. This incident casts a spotlight on Karnali Development Bank, which was previously declared 'problematic' by the Nepal Rastra Bank (NRB), the central bank of Nepal. Following this declaration, the NRB took over the management of the bank to safeguard the interests of depositors and ensure financial stability. The current arrests stem from a formal complaint lodged by the NRB's management team, which has been diligently overseeing the bank's operations and investigating irregularities. This move by the central bank highlights its unwavering resolve to enforce regulatory compliance and maintain the integrity of the financial system. Banking offenses in Nepal typically encompass a range of illicit activities, including fraudulent loan disbursements, misuse of public funds, embezzlement, and non-compliance with banking laws and regulations. Such offenses not only lead to significant financial losses but also erode public trust in the banking sector, which is a cornerstone of economic stability. The arrest of a high-ranking official like a CEO sends a strong message that no individual, regardless of their position, is above the law when it comes to financial misconduct. The ongoing investigation and subsequent legal proceedings are expected to shed more light on the specific nature of the banking offenses committed. For investors and the general public, this development reinforces the importance of robust corporate governance and stringent regulatory oversight within financial institutions. The NRB's proactive role in identifying and addressing issues within problematic banks is crucial for fostering a secure and trustworthy financial environment. This incident serves as a stark reminder of the potential risks associated with financial institutions that fail to adhere to ethical practices and regulatory mandates, ultimately impacting their long-term viability and investor confidence. The financial journalist community and market observers will be closely watching the outcome of this case, as it could set important precedents for accountability in Nepal's banking sector. It underscores the continuous efforts required to uphold transparency and ethical conduct, ensuring that the financial system remains resilient and serves the broader economic interests of the nation.
Energy Minister Shrestha Announces Early Start to Contract Processes, Gradual Resolution of Electricity Meter Shortage
Nepal's Minister for Energy, Water Resources, and Irrigation, Biraj Bhakta Shrestha, has announced a significant shift in the implementation of the current fiscal year's budget, with contract processes commencing as early as Shrawan (mid-July to mid-August). This proactive approach marks a notable departure from past practices, where such processes often faced considerable delays, impacting project timelines and overall economic efficiency. Speaking at a meeting of the Infrastructure Development Committee on Friday, Minister Shrestha highlighted that a substantially higher number of contracts have been initiated from Shrawan this year compared to previous periods. Emphasizing that only 22 days into the budget's implementation, the ministry is already demonstrating its commitment to addressing public concerns. He further underscored the ministry's continuous engagement and coordination with local, provincial, and federal representatives to ensure that projects are aligned with the needs of the populace and executed effectively. In a move towards decentralization and enhanced transparency, Minister Shrestha also informed the committee that a majority of irrigation projects have been transferred to provincial jurisdiction. While acknowledging the constitutional and legal frameworks governing such transfers, he affirmed the ministry's unwavering commitment to its responsibilities. A new procedural framework, developed with the participation of parliamentary members, is in its final stages. This framework aims to classify and implement projects transparently, ensuring equitable resource allocation and efficient execution across the country. The ministry is also advancing the process of sending conditional grants in coordination with the provinces, believing that collaboration with district offices will further enhance implementation effectiveness. Addressing a critical issue that has long plagued consumers and the Nepal Electricity Authority (NEA), Minister Shrestha confirmed that the shortage of electricity meters across various parts of the country is gradually being resolved. He candidly admitted that past delays in procurement processes had led to a scarcity of transformers, but noted a significant improvement in the supply of electricity meters. To manage meter distribution systematically, the Executive Director of the Nepal Electricity Authority is actively working on a strategic plan. According to Minister Shrestha, the government has adopted a policy of proportional meter distribution across all provinces. He stated that the first phase of meters has already been dispatched to all provinces, and complaints regarding installation delays are progressively decreasing. While the demand for meters in Karnali Province has been met, the eastern region, due to its higher population density, still requires additional supply. The government remains committed to providing meters to the remaining areas swiftly, based on demand and necessity. For investors, these developments signal a more dynamic and responsive approach to infrastructure development and public service delivery. The early initiation of contract processes suggests a potentially more efficient allocation of capital and timely completion of projects, which could stimulate economic activity in the construction and related sectors. The resolution of meter shortages is crucial for the NEA's revenue collection and operational efficiency, potentially making the utility a more attractive entity for future investments. Furthermore, improved irrigation infrastructure and reliable electricity supply are fundamental drivers of economic growth, benefiting various industries and fostering a more stable investment environment in Nepal.
Sun Nepal Life CEO Raj Kumar Aryal Resumes Regular Duties After CIB Clearance
Sun Nepal Life Insurance Company CEO Raj Kumar Aryal has resumed his regular duties from today after being cleared by the Central Investigation Bureau (CIB) of Nepal Police following a four-month-long investigation. Aryal had been arrested by the CIB on Chaitra 16 in connection with a complaint alleging irregularities in the allocation of shares reserved for employees under the company’s initial public offering (IPO). He was released on Chaitra 22, but did not return to the office during the investigation period, stating that he would remain away from his duties until the investigation was completed. According to the company, the CIB investigation found no wrongdoing or irregularities involving Aryal. Following the clearance from the investigating authority, he has now returned to his previous responsibilities as CEO. During Aryal’s absence, Kabi Phuyal had been serving as the acting CEO of the company. The CIB had investigated allegations of irregularities in the distribution of IPO shares allocated to employees of Sun Nepal Life. However, the investigation reportedly did not establish any wrongdoing, leading to Aryal’s clearance and his subsequent return to regular duties. Notice:
Vision Securities Launches Margin Trading Services for Investors
Vision Securities Pvt. Ltd. (Stock Broker No. 34) has officially launched margin trading services from Shrawan 19, 2083, in accordance with the Margin Trading Facility Directive, 2082 issued by the Securities Board of Nepal (SEBON) and the Margin Trading Facility Procedure, 2082 issued by Nepal Stock Exchange (NEPSE). The brokerage will provide margin trading facilities to eligible clients within the prescribed regulatory limits. Investors interested in using the facility can contact Vision Securities to open a margin account and access the service.
Kamana Sewa Bikas Bank Proposes 15% Cash Dividend for FY 2082/83, First to Announce
Kamana Sewa Bikas Bank Limited (KSBBL) has made headlines by becoming the inaugural financial institution to propose a dividend for the fiscal year 2082/83. This early announcement signals a proactive approach and potentially robust financial health, setting a precedent for other banks in the Nepalese market. The bank's 419th Board of Directors meeting, convened on Friday, Shrawan 22, 2083, formally approved the dividend proposal, as confirmed by CEO Dinesh Thakali. For its ordinary shareholders, KSBBL has put forth a significant 15% cash dividend, which includes the applicable tax. This move is particularly noteworthy as cash dividends provide immediate liquidity to investors, a feature often favored by those seeking direct returns rather than capital appreciation through bonus shares. In addition to the ordinary shareholders, preference shareholders are also set to benefit from a proposed 9% dividend. Both dividend proposals are slated to be distributed from the bank's accumulated profits, underscoring a strong earnings base. The proposed dividend, however, is not yet final. It awaits crucial approvals from two key bodies: Nepal Rastra Bank (NRB), the central bank and primary regulator of financial institutions in Nepal, and the bank’s upcoming 20th Annual General Meeting (AGM). These approvals are standard regulatory and corporate governance requirements, ensuring that the dividend distribution aligns with financial regulations and shareholder consensus. Comparing this year's proposal with the previous fiscal year (2081/82) offers valuable insight. Last year, Kamana Sewa Bikas Bank had distributed a total dividend of 15.7895%, which was a combination of bonus shares and a cash dividend. While the current proposal for ordinary shareholders is a pure cash dividend of 15%, the overall quantum remains competitive and reflects the bank's consistent commitment to shareholder returns. The decision to offer a pure cash dividend this year, as opposed to a mix, could be influenced by various factors, including the bank's capital adequacy position, strategic growth plans, and prevailing market conditions. Cash dividends are often seen as a sign of confidence in current profitability and a stable financial outlook, as they directly reduce the bank's retained earnings. For investors, this announcement from KSBBL is a positive indicator. It suggests that despite potential economic headwinds or competitive pressures within the banking sector, Kamana Sewa Bikas Bank has managed to maintain profitability and is in a position to reward its shareholders. Development banks like KSBBL play a crucial role in Nepal's financial ecosystem, often catering to specific regional development needs and small to medium-sized enterprises. Their performance is a bellwether for broader economic activity in those segments. The early declaration for FY 2082/83 also sets an optimistic tone for the upcoming dividend season across the NEPSE. It could prompt other financial institutions to expedite their own financial reporting and dividend proposals, contributing to increased market activity and investor sentiment. Shareholders of KSBBL will now keenly await the NRB approval and the 20th AGM to finalize the distribution of these proposed dividends, which promise tangible returns on their investments. This move reinforces KSBBL's position as a stable and shareholder-friendly institution within Nepal's dynamic financial landscape.
Why Do Nepal's Commercial Banks Keep Losing to the Market?
The fundamentals behind a decade of underperformance Between 15 July 2017 and 16 July 2026, Nepal's Commercial Banking sub-index rose 1%. Over the same nine years, the broader NEPSE Index rose 64%. Only one other sector on the exchange did worse. That gap is the starting point for this piece: banking is the largest sector on NEPSE by market capitalization, and on paper one of the soundest by average fundamentals, yet it has been among the worst places to make an investment for most of the past decade. The usual explanations, too much supply, too little speculative interest, are real, but they are not the deeper story. The deeper story is that the sector's capacity to pay dividends has collapsed at the same time as bad loans have quietly climbed, and headline valuation ratios have masked both trends for years. Graph 1: NEPSE and Its Sectoral Index Growth, 15 July 2017 – 16 July 2026 (FY2016/17 = Base). Note: The Microfinance, Life Insurance, Non-Life Insurance, and Investment sector indices began tracking slightly later than the others shown. Supply Explains Part of the Story Commercial Banking posted the second-lowest sectoral growth of the period, ahead of only Investment (-1%). At the other extreme, Trading gained 1,452%, followed by Manufacturing and Processing (329%), Finance (224%), and Hotels and Tourism (218%). The pattern is consistent across sectors: low-float stocks have rallied on comparatively modest speculative buying, while high-float sectors have lagged. Share supply is one of two forces that set a stock's return, alongside its underlying fundamentals. Low-float stocks are easy to move because a small amount of buying makes a huge impact on the free float. Commercial banks sit at the opposite end: their combined paid-up capital exceeded NPR 395 billion by the third quarter of FY2025/26, a scale that makes their share prices far harder to shift on sentiment alone. That leaves fundamentals, rather than trading dynamics, as the real determinant of where bank share prices go next. Yet most long-term retail investors in Nepal concentrate their holdings in banking stocks, drawn by their perceived stability and dividend history. Many have noticed that even years of holding these shares have produced minimal or negative returns, a trend that has sharpened over the last five years. Graph 2: NEPSE Index Growth vs. Commercial Banking Index Growth, FY2016/17–FY2025/26 (Cumulative, Base FY2016/17). The two indices fell together through the FY 2017/18–FY 2019/20 correction, with banking falling faster (-28% vs. NEPSE's -23% by FY2017/18). They diverged from FY2020/21, when NEPSE surged 82% on the post-pandemic reopening rally while banking rose just 38%. NEPSE kept climbing to 42% cumulative growth by FY2023/24; banking, that same year, turned negative at -14%. It crossed back into positive territory in FY2024/25 (7%) before drifting down to 1% by FY2025/26, even as NEPSE stood 64% above its base. For three consecutive fiscal years, banking moved backward while the broader market advanced. The Real Culprit: Falling Dividend Capacity, Rising Bad Loans Oversupply explains why banking hasn't rallied as hard as low-float sectors. It doesn't explain why banking has gone backward in absolute terms. That requires looking at what banks can actually afford to pay out, and what's sitting on their books. Graph 3: Commercial Banking Sector, Average Dividend-Paying Capacity per Share vs. NPL Ratio, FY2016/17–FY2025/26 Q3. Note: FY2025/26 Q3 distributable EPS is drawn from banks' published financial statements; earlier years' figures are from historical NEPSE-listed company filings. Retained earnings and distributable EPS differ slightly due to Nepal Rastra Bank (NRB) regulatory adjustments. In FY2016/17, average dividend-paying capacity across the sector stood at NPR 17.87 per share, against an average non-performing loan (NPL) ratio of 1.60%. By FY2023/24, dividend-paying capacity had collapsed to NPR 0.78 per share, while NPLs had more than doubled to 3.76%. The deterioration continued from there: NPLs reached 4.44% in FY2024/25 and 5.41% by the third quarter of FY2025/26, more than three times the FY2016/17 level. Dividend-paying capacity recovered briefly to NPR 6.27 per share in FY2024/25, then turned negative, roughly NPR -2.51 per share, in the most recent quarter, implying that loan-loss provisioning has, on average, outpaced retained earnings. Throughout this period, banks traded at price-to-earnings ratios of 15 to 20, which on the surface looked undervalued relative to the broader market. That apparent cheapness masked real strain underneath. Even after FY2021/22, when economic growth slowed and NPLs should mechanically have climbed, reported sector-wide NPLs stayed surprisingly low, at just 1.20% that year. By comparison, IMF research on past systemic banking crises finds that a large majority exhibit NPL ratios exceeding 7% of total loans at their peak, with Asian-crisis-era peaks running considerably higher still. Nepal's sector-wide figure has still not approached even the lower end of that historical range five years on, which raises a fair question: how much of the gap reflects genuinely resilient underwriting, and how much reflects accounting or regulatory flexibility in how bad loans get classified and provisioned? This is the part that most retail investors, and, by some accounts, even professional fund managers, appear to have missed. Many continued holding banking stocks with visibly shrinking dividend capacity and deteriorating loan books, because headline ratios like P/E, P/B, and reported EPS growth still looked reasonable in isolation. The Exceptions Prove the Rule Not every bank fits the pattern. Among the 19 commercial banks listed on NEPSE, Everest Bank (EBL), Standard Chartered Bank Nepal (SCB), and Sanima Bank (SANIMA) have meaningfully outperformed peers. As of the third quarter of FY2025/26, they reported NPL ratios of 0.61%, 1.81%, and 3.99%, respectively, all comfortably below the sector average of 5.41%. What sets them apart is not their float or their trading volume; it's stronger dividend-paying capacity and materially lower NPLs than the industry average. Investors in most other commercial banks, by comparison, have seen negligible or negative returns over the same period. The Takeaway P/E, P/B, and EPS growth remain useful screening tools, but on their own they are not sufficient for long-term investment decisions in Nepal's banking sector; they can look reasonable even while dividend capacity is collapsing underneath them. Until dividend-paying capacity recovers sector-wide, and non-performing loans and non-banking assets come down meaningfully, a broad recovery in banking share prices looks unlikely, regardless of how attractive individual valuation metrics appear in isolation. For investors positioned in the sector, two figures are worth tracking each quarter going forward: the sector-wide NPL ratio in NRB's quarterly bank supervision reports, and distributable EPS in each bank's unaudited quarterly financials. A sustained reversal in both, not a single good quarter, would be the signal that the sector's decade-long underperformance is finally turning. Until then, selectivity among individual banks, not blanket exposure to the sector, is likely to remain the more rewarding approach for investors in Nepal's banking stocks. Article By: Dipendra Pandey
Nepal Takes Center Stage in Geopolitical Dialogue: International Conference Explores China and South Asia in a Multipolar World
Kathmandu, Nepal – In a significant diplomatic and academic gathering, Nepal recently hosted a pivotal international conference titled “China and South Asia in a Multipolar World.” The two-day event, which commenced on August 7 at The Square Hotel in Pulchowk, brought together an esteemed assembly of approximately 30 scholars, diplomats, policymakers, and strategic affairs experts from Nepal, China, and India. This high-level dialogue underscored Nepal's growing importance as a strategic nexus in the evolving global geopolitical landscape. Jointly organized by the Center for South Asian Studies at Fudan University and the Nepal Institute for International Cooperation and Engagement (NIICE), the conference delved into critical themes shaping the future of the region. Key discussions revolved around fostering enhanced regional cooperation, exploring the intricate dynamics of Nepal-China-India trilateral connectivity, addressing security concerns, developing robust economic corridors, navigating strategic competition, and confronting emerging geopolitical challenges. For investors, these discussions are crucial as they directly influence regional stability, trade routes, and potential infrastructure development projects, offering insights into the long-term economic trajectory of the Himalayan nation. Addressing the inaugural session, Nepal’s Foreign Affairs Minister Shisir Khanal articulated Nepal’s unwavering commitment to maintaining balanced and equitable relations with both its powerful neighbors, China and India. He emphasized that Nepal's foreign policy is firmly rooted in principles of sovereign equality, mutual respect, and mutual benefit. Minister Khanal highlighted economic diplomacy as a cornerstone of Nepal's development strategy, identifying trade, investment, tourism, technology transfer, hydropower development, and improved connectivity as paramount areas for national growth and prosperity. His vision for Nepal extends beyond its landlocked status, aspiring to transform the nation into "a vibrant, dynamic bridge connecting China and South Asia" through enhanced transport networks, streamlined trade facilitation, advanced digital connectivity, and robust people-to-people exchanges. This ambitious goal presents significant opportunities for foreign direct investment in infrastructure, logistics, and technology sectors, potentially reshaping Nepal's economic landscape. Echoing this sentiment, Chinese Ambassador to Nepal Dr. Zhang Maoming underscored South Asia’s escalating importance within the emerging multipolar global order. He reiterated Nepal’s pivotal role as a vital bridge between China and South Asia, emphasizing the need for deeper and broader China-Nepal cooperation. Ambassador Maoming specifically highlighted high-quality Belt and Road Initiative (BRI) cooperation, which could unlock substantial infrastructure projects and connectivity enhancements for Nepal, thereby improving trade efficiency and regional integration. Furthermore, he stressed collaborative efforts in poverty reduction, healthcare advancements, and strengthening cultural and educational people-to-people exchanges, all of which contribute to long-term economic and social stability, fostering a conducive environment for sustainable development. The conference featured eight comprehensive thematic sessions designed to dissect various facets of the overarching theme. These sessions covered a wide array of topics, including the intricate relationship between China and South Asia in a multipolar world, the complexities and opportunities of Nepal-China-India trilateral cooperation, the implications of strategic competition on regional security, the potential of economic corridors to spur growth, strategies for regional development, the role of soft power in international relations, the impact of educational diplomacy, and the future trajectory of Nepal’s foreign policy. Such detailed discussions provide valuable insights for investors seeking to understand the long-term economic and political landscape of the region, identifying potential risks and rewards. The insights gleaned from this conference are expected to inform future policy decisions and foster greater understanding among regional stakeholders. For the investment community, the emphasis on economic corridors, connectivity, and trilateral cooperation signals potential avenues for growth in sectors like infrastructure, logistics, energy, and tourism. Nepal's strategic positioning and its stated ambition to act as a regional bridge make it an increasingly attractive destination for investors looking to capitalize on South Asia's dynamic economic environment and its burgeoning markets. The conference, which concluded on August 8, serves as a testament to Nepal's proactive engagement in shaping its regional and global future, promising a more integrated and economically vibrant South Asia.
Nepal's Foreign Employment Sector Declares 'Zero Hour,' Halting Worker Deployment Amid Policy Standoff
The Nepal Association of Foreign Employment Agencies (NAFEA) has declared an immediate 'zero hour,' effectively halting the deployment of Nepali workers for overseas employment. This drastic measure, announced by NAFEA President Dik Bahadur Khatri (Kumar), comes in protest against what the association describes as persistent complexities and impractical policies within the foreign employment sector. The decision, implemented from today, signifies a critical juncture for an industry that is a cornerstone of Nepal's economy, contributing significantly to national remittances and supporting a vast majority of Nepali households. Foreign employment is not merely a sector but a lifeline for countless families in Nepal, with remittances accounting for a substantial portion of the nation's GDP. NAFEA estimates that approximately 64% of Nepali households are directly or indirectly reliant on this sector. Despite its immense economic contribution, the association alleges that the government has largely neglected the industry, leading to a myriad of challenges for both recruiting agencies and aspiring migrant workers. The 'zero hour' declaration is presented as a final resort, born out of frustration with what NAFEA perceives as a lack of meaningful engagement and policy reform from the government and relevant stakeholders. NAFEA has put forth a comprehensive 15-point demand list, outlining critical areas requiring immediate government intervention. These demands aim to foster a more transparent, efficient, and worker-friendly foreign employment ecosystem: 1. **Withdrawal of Penalties:** The association demands the immediate withdrawal of punitive actions taken by the Department of Foreign Employment against 598, 39, and 124 licensed agencies. NAFEA argues these penalties are often arbitrary and hinder legitimate business operations. 2. **Act Amendment for Fair Pricing:** A crucial demand is the amendment of the Foreign Employment Act 2064 to establish transparent worker costs and scientifically determined service charges for recruiting agencies. This seeks to eliminate ambiguities and ensure fair compensation for services rendered. 3. **Control Over Airfare:** NAFEA calls for an end to the abnormal increase and artificial scarcity in airfare for popular destination countries, which disproportionately burdens migrant workers. 4. **Streamlined Demand Letter Verification:** The process for verifying demand letters, particularly for destinations like Europe, South Korea, Japan, and for female domestic workers, needs to be simplified and made more efficient. 5. **Effective Bilateral Labor Agreements:** The association advocates for the establishment of effective and worker-friendly bilateral labor agreements with destination countries to decentralize the market and enhance worker protection. 6. **Improved Complaint Management:** NAFEA proposes separate legal provisions for handling institutional and individual complaints, along with a fair and just system for settling claims. 7. **Full System Automation:** A complete automation of demand letter verification, pre-approval, and final labor approval processes is demanded to enhance transparency, reduce delays, and minimize human intervention. 8. **Eradication of Syndicates and Monopolies:** The association urges diplomatic efforts to dismantle existing monopolies and the influence of middlemen in critical processes such as Saudi Arabia's VFS and biometric procedures, UAE's police report verification, and Malaysia's worker recruitment. 9. **Appointment of Labor Attachés:** In line with the Foreign Employment Act, NAFEA demands the mandatory appointment of labor attachés and counselors in countries hosting over 5,000 Nepali workers to provide essential support and oversight. 10. **Moratorium on New Licenses:** To ensure market stability and quality control, NAFEA demands a complete halt to issuing new foreign employment licenses based on Nepal's population, proposing that licenses be issued only every five years based on stringent criteria. 11. **Interest on Cash Deposits:** The association seeks an end to the "dual policy" where foreign employment agencies, unlike other private sectors, do not receive interest on their substantial cash deposits held by the government. 12. **Cashless Environment and Concessional Loans:** To combat illegal transactions, usury, and protect workers' capital, NAFEA proposes linking aspiring migrant workers with financial institutions for collateral-free or concessional loans, fostering a cashless environment in the sector. This declaration of 'zero hour' is expected to have immediate and far-reaching consequences. Thousands of Nepali workers currently in various stages of the foreign employment process will be directly affected, leading to potential delays, financial losses, and uncertainty. For Nepal's economy, a prolonged halt in worker deployment could significantly impact remittance inflows, which are vital for national stability and household incomes. NAFEA's press note explicitly states their commitment not to resume business until policy reforms are not only enacted but also rigorously implemented. This standoff underscores the urgent need for constructive dialogue between the government and foreign employment stakeholders to address long-standing grievances and ensure the sustainable and ethical functioning of this critical sector. The coming days will reveal whether this bold move by NAFEA will compel the government to initiate the much-needed policy overhauls.
Major Crackdown on Counterfeit Auto Parts Racket in Banepa: Millions in Fake Tata Spares Seized, Key Trader Arrested
The Kavrepalanchowk District Police Office has made a significant breakthrough in combating illicit trade, arresting a trader in Banepa on serious charges of importing and selling counterfeit Tata vehicle parts and lubricants. This operation, which uncovered a vast network of illegal goods, underscores the persistent challenge of counterfeit products in the Nepali market and its far-reaching implications for consumer safety, legitimate businesses, and national revenue. Acting on intelligence, a dedicated police team conducted a meticulous raid on the shop and associated warehouses of Nest Generation Automotive Pvt. Ltd., a business owned by Rajkumar Pote. The search yielded an alarming discovery: counterfeit auto parts and lubricants valued at crores of rupees, all illegally imported and destined for unsuspecting consumers. Following the extensive seizure, police authorities sealed the primary shop along with ten additional warehouses, taking Pote into custody for further investigation and legal proceedings. This is not Pote's first brush with the law. Police records indicate that he has a history of arrests and prosecutions related to multiple revenue fraud cases, suggesting a pattern of engagement in illicit financial activities. This background highlights the sophisticated nature of such operations, often involving individuals with prior experience in circumventing legal and tax frameworks. The proliferation of counterfeit auto parts poses a severe threat on multiple fronts. Primarily, it jeopardizes public safety. Substandard and unverified parts can lead to critical vehicle malfunctions, directly contributing to an increase in road accidents, which tragically result in loss of life and property. For consumers, the allure of cheaper prices often masks the hidden dangers and the eventual higher costs associated with premature wear, frequent repairs, and potential catastrophic failures. Economically, the impact is equally detrimental. The state is deprived of substantial revenue through evaded customs duties, value-added tax (VAT), and income tax, funds that are crucial for national development and public services. Furthermore, legitimate businesses, including authorized dealers and genuine manufacturers like Tata, suffer immensely. They face unfair competition from these illicit traders who operate without the overheads of quality control, intellectual property compliance, and taxation. This erosion of market share and brand reputation can stifle growth for genuine enterprises, discourage foreign direct investment, and ultimately lead to job losses within the formal sector. The police noted that some legitimate businesses are being directly affected and even driven out of the trade due to this unfair competition. The broader investment climate in Nepal is also impacted. A market perceived to be rife with counterfeit goods and weak enforcement of intellectual property rights can deter both domestic and international investors who prioritize a fair and predictable business environment. Such incidents underscore the critical need for robust regulatory frameworks and stringent enforcement mechanisms to protect consumers, uphold intellectual property, and ensure a level playing field for all market participants. In response to this growing menace, the police administration has affirmed its commitment to intensifying nationwide search and enforcement operations against individuals and networks involved in such illegal trade. This proactive stance is crucial for restoring consumer confidence, safeguarding legitimate businesses, and ensuring the integrity of the market. The successful operation in Banepa serves as a strong deterrent and a clear message that authorities are dedicated to clamping down on those who seek to profit from deception and endanger public safety. This incident highlights the ongoing battle against economic crimes that undermine the very fabric of a fair and transparent market. Investors and consumers alike should remain vigilant, prioritizing genuine products and supporting businesses that adhere to ethical and legal standards.
Kumari Sunaulo Lagani Yojana Announces 4.70% Dividend for FY 2082/83, Offering Reinvestment Option
Kumari Sunaulo Lagani Yojana (KSLY), an open-ended mutual fund managed by Kumari Capital Limited and sponsored by Kumari Bank Limited, has officially announced a significant dividend declaration for its unitholders. The fund proposes a 4.70% return for the fiscal year 2082/83, a decision made by the Board of Directors of Kumari Capital Limited. This declaration marks a positive development for investors seeking consistent returns from their mutual fund investments in the Nepalese capital market. The 4.70% return will be distributed to eligible unitholders, with the book closure date set for 2083/04/21. This means that only those investors whose names are recorded in the fund's books by this specific date will qualify to receive the announced dividend. Investors are advised to ensure their holdings are properly registered by the deadline to benefit from this distribution. A key feature of Kumari Sunaulo Lagani Yojana, as an open-ended scheme, is the provision of a Dividend Reinvestment Plan (DRIP). Under the DRIP, eligible unitholders have the option to reinvest their dividend amount directly back into the scheme. After deducting applicable taxes and DP (Depository Participant) charges, the remaining dividend can be adjusted against the fund's Net Asset Value (NAV). This mechanism allows investors to compound their returns, effectively increasing their unit holdings without incurring additional transaction costs, thereby leveraging the power of compounding for long-term wealth creation. DRIPs are particularly attractive for growth-oriented investors who prefer to defer immediate cash payouts in favor of expanding their investment base within the fund. As of the end of Ashadh, the Net Asset Value (NAV) of Kumari Sunaulo Lagani Yojana stood at Rs. 11.65. The NAV is a crucial indicator of a mutual fund's performance, representing the per-unit market value of the fund's assets less its liabilities. A healthy NAV, coupled with a consistent dividend payout, reflects sound management and a robust investment strategy by Kumari Capital. Kumari Bank Limited, a prominent commercial bank in Nepal, sponsors KSLY, lending credibility and institutional backing to the fund. Kumari Capital, as the fund manager, is responsible for the day-to-day investment decisions, aiming to achieve the fund's objectives, which typically include capital appreciation and income generation for its unitholders. The consistent performance and dividend declarations from such funds play a vital role in attracting both retail and institutional investors to the mutual fund industry, contributing to the overall depth and liquidity of the Nepalese capital market. This dividend announcement comes at a time when investors are keenly observing market trends and seeking stable investment avenues. Mutual funds, especially those with a track record of dividend distribution, offer a diversified and professionally managed option for investors looking to participate in the stock market indirectly. The 4.70% return, while seemingly modest, represents a steady income stream for unitholders and underscores the fund's commitment to delivering value. Investors should consider their personal financial goals and tax implications when deciding whether to opt for the cash dividend or the DRIP option. This move by Kumari Sunaulo Lagani Yojana is expected to further enhance investor confidence in the fund and the broader mutual fund sector in Nepal.
NEPSE Concludes Week with Decline in Index and Trading Volume
The Nepal Stock Exchange (NEPSE) concluded the trading week on Friday with a notable decline in its benchmark index and a significant contraction in trading volume, signaling a cautious sentiment among investors. The NEPSE index shed 4.05 points, closing at 2650.09, marking a subdued end to the week's trading activities. This modest dip was mirrored across other key indices, with the Sensitive Index, which tracks large and financially sound companies, falling by 1.16 points. Similarly, the Float Index, representing actively traded shares, decreased by 0.47 points, and the Sensitive Float Index also saw a decline of 0.44 points. These movements collectively indicate a broad-based, albeit slight, downward pressure across the market, reflecting a period of consolidation or minor correction. A more concerning aspect of Friday's trading was the substantial drop in transaction volume. The market recorded the exchange of 10,313,979 units of shares, totaling a mere NPR 3.77 billion. This figure represents a significant reduction compared to Thursday's trading, which saw shares worth NPR 4.62 billion change hands. The dwindling turnover suggests a decrease in investor participation and liquidity, often interpreted as a sign of waning confidence or a wait-and-see approach as investors assess future market directions. Lower trading volumes during a market decline can sometimes exacerbate price movements, as fewer buyers are available to absorb selling pressure, potentially leading to increased volatility in specific counters. Despite the overall bearish trend, some individual stocks managed to defy the market's gravitational pull. Aatmanirbhar Laghubitta emerged as the top gainer, with its share price surging by an impressive 8.54% to close at NPR 5,996. This strong performance highlights the potential for specific companies to outperform even in a challenging market environment, often driven by unique company-specific news, strong fundamentals, or speculative interest. Other notable gainers included HLI Large Cap and NIC Asia Balance Fund, both of which saw their unit prices increase by over 5%, indicating sustained interest in certain mutual funds and large-cap entities. Conversely, Upper Lohore Khola Hydropower Company experienced the steepest decline, with its share price falling by 6.93%, reflecting the inherent volatility within the hydropower sector, which is often subject to regulatory changes, project delays, and environmental factors. In terms of market activity, Solu Hydropower dominated the turnover charts, recording transactions worth NPR 392.5 million. This substantial volume indicates significant investor interest or large block deals in the company, possibly driven by recent news or future growth prospects. Ridi Power Company also saw robust trading, with turnover exceeding NPR 230 million, while Sanima Bank registered transactions worth over NPR 170 million. These figures underscore the continued focus of investors on specific high-liquidity stocks, even as overall market volume contracts, suggesting a selective approach to investment during periods of market uncertainty. A detailed look at the sectoral performance reveals a mixed bag, with the majority of sub-indices closing in the red. Out of the thirteen sub-groups, only four managed to post gains: Trade, Manufacturing & Processing, Microfinance, and Mutual Fund. The resilience of these sectors could be attributed to various factors, including strong consumer demand, robust production figures, or sustained interest in collective investment schemes offering diversification. However, the broader market sentiment was clearly negative, with nine sub-indices experiencing declines. These included heavyweight sectors such as Banking, Development Bank, Finance, Hotels & Tourism, Hydropower, Life Insurance, Non-Life Insurance, and Others. The widespread decline across these diverse sectors suggests that the market correction was not isolated but rather a broader phenomenon affecting various segments of the Nepalese economy. Investors will be closely monitoring these sectoral trends to identify potential opportunities or risks in the coming weeks. The reduced trading activity and general market decline on Friday could set a cautious tone for the upcoming trading sessions, prompting investors to re-evaluate their portfolios and strategies in anticipation of future market movements.
Nepal Telecom Authority Issues Sweeping Directives to Enhance Mobile Service Quality and Consumer Rights
In a significant move poised to reshape Nepal's telecommunications landscape, the Nepal Telecommunications Authority (NTA) has unveiled a comprehensive 8-point directive. This stringent mandate targets mobile service providers, aiming for a drastic overhaul in service quality, robust protection of consumer rights, strategic technological expansion, and a more transparent tariff system. The directive, issued via a press statement, underscores the NTA's commitment to fostering a more efficient, reliable, and consumer-centric digital ecosystem across the nation. The primary focus of the NTA's directive is to elevate mobile service quality and ensure network reliability. Service providers are now obligated to significantly improve customer experience and submit regular reports confirming their adherence to NTA-prescribed standards. This move is expected to bring a much-needed boost to user satisfaction, addressing long-standing complaints regarding call drops, internet speeds, and network availability. To bolster consumer grievance resolution, the NTA has mandated the establishment of a 24/7 complaint handling system. This innovative approach encourages the integration of Artificial Intelligence (AI) and other advanced technologies to streamline the complaint redressal process, making it more efficient and responsive. Furthermore, telecom companies are required to conduct regular customer satisfaction surveys, ensuring that consumer feedback directly influences service improvements and operational adjustments. A cornerstone of the NTA's directive focuses on accelerating technological advancement. Service providers are now tasked with presenting a phased plan to not only enhance the quality of 4G services nationwide but also to initiate the rollout of 5G services in major urban centers. This forward-looking approach is critical for Nepal's digital transformation, promising higher speeds and greater connectivity. Furthermore, the NTA has mandated the identification of rural and industrial areas currently underserved by high-speed broadband, directing companies to expand their network coverage to these crucial regions. To ensure transparency and accountability, providers must also submit quarterly updates, graphically illustrating their service coverage on a map of Nepal, thereby ensuring equitable access and bridging the digital divide. Regarding service charges, the NTA is enforcing a stricter regime. Telecom providers are now required to adopt a scientific, transparent, and market-oriented tariff system. This includes conducting 'cost-based tariff analysis' and submitting proposals to the NTA for reviewing service fees, ensuring they align with market demands and technological advancements. This measure aims to prevent arbitrary pricing and promote fair competition within the sector, ultimately benefiting consumers through more competitive and justifiable pricing structures. The directive also places a strong emphasis on security and infrastructure. Service providers must prepare and implement regular security audits, disaster recovery plans, and business continuity plans to fortify cybersecurity and network security. This proactive stance is vital in safeguarding sensitive user data and ensuring uninterrupted service delivery. Additionally, the NTA stresses the importance of maximizing radio frequency utilization and minimizing redundant infrastructure investments, advocating for the efficient use of national resources. This approach promotes sustainable growth and reduces operational costs for providers, which could translate into better services or more competitive pricing. Finally, the NTA has introduced stringent provisions for projects operating with its grants. These projects must be completed within the stipulated timelines and standards, with regular progress reports submitted to the authority. This ensures accountability and efficient utilization of public funds, contributing to the overall development of the telecommunications infrastructure. These comprehensive directives from the NTA signal a new era for Nepal's telecommunications sector, promising enhanced service quality, greater consumer protection, and accelerated technological progress. For investors, this regulatory clarity and push for efficiency could lead to a more stable and predictable operating environment, potentially fostering innovation and long-term growth within the industry.
NMB Saral Bachat Fund - E Declares 5.25% Dividend for FY 2082/83, Offering Attractive Returns and DRIP Option
NMB Saral Bachat Fund - E (NMBSBF), a prominent open-ended mutual fund scheme managed by NMB Capital Limited and sponsored by NMB Bank Limited, has announced a significant dividend distribution for its unitholders. The fund's board of directors has approved a 5.25% return for the fiscal year 2082/83, signaling a commendable performance and commitment to delivering value to its investors. This declaration is poised to attract considerable attention from investors seeking stable returns in Nepal's evolving capital market. The decision to distribute a 5.25% return underscores NMB Capital's effective management strategies and the fund's robust portfolio performance throughout the fiscal year. For unitholders, this translates into a direct benefit, enhancing the overall attractiveness of NMBSBF as an investment vehicle. Given the current economic landscape and interest rate environment, a 5.25% return from a mutual fund is a competitive offering, potentially outperforming traditional savings instruments and providing a diversified investment avenue. As an open-ended fund, NMB Saral Bachat Fund - E offers investors the flexibility of buying and selling units on an ongoing basis, providing liquidity that is often sought after by both retail and institutional investors. This structure allows the fund to continuously issue new units or redeem existing ones based on investor demand, with the Net Asset Value (NAV) serving as the benchmark for transactions. For the month of Ashadh, the fund's NAV stood at Rs. 10.59, reflecting its underlying asset value and performance. A crucial aspect of this dividend announcement is the book closure date, which has been set for 2083/04/21. Investors must ensure their units are recorded in their demat accounts by this date to be eligible for the declared dividend. This is a standard practice in the capital market to determine the rightful beneficiaries of corporate actions. Prospective investors or existing unitholders planning to adjust their holdings should take note of this deadline to secure their entitlement. Furthermore, NMB Saral Bachat Fund - E offers a Dividend Reinvestment Plan (DRIP), a feature that allows eligible unitholders to reinvest their dividend amount back into the scheme. After deducting applicable taxes and DP charges, the dividend amount is adjusted into the fund's NAV, effectively purchasing additional units. The DRIP option is particularly beneficial for long-term investors looking to compound their returns and grow their investment portfolio without incurring additional transaction costs. It exemplifies a strategic approach to wealth accumulation, leveraging the power of compounding over time. NMB Bank Limited, the sponsor of NMBSBF, is one of Nepal's leading commercial banks, renowned for its strong financial standing and extensive network. Its association lends significant credibility and stability to the mutual fund scheme. NMB Capital, as the fund manager, brings expertise in portfolio management, research, and risk assessment, ensuring that the fund's investments are strategically aligned with its objectives of capital appreciation and income generation. Their combined strength provides a solid foundation for the fund's continued success. The mutual fund industry in Nepal has been witnessing steady growth, with increasing participation from both individual and institutional investors. Schemes like NMB Saral Bachat Fund - E play a vital role in mobilizing capital and channeling it into various sectors of the economy, contributing to overall market development. Such dividend declarations not only reward existing unitholders but also serve as an indicator of the fund's health and the broader market's potential, encouraging new investments. In conclusion, the 5.25% dividend declaration by NMB Saral Bachat Fund - E for FY 2082/83 is a positive development for its unitholders and the wider investment community. It highlights the fund's commitment to delivering consistent returns and its robust management. Investors are encouraged to consider the benefits of open-ended funds, the strategic advantage of DRIP, and the importance of adhering to book closure dates to maximize their investment potential in the dynamic Nepali capital market.
Nepal Parliament Bans In-House Share Trading, Enforces Strict Dress Code for MPs
The Nepali Parliament has introduced stringent new directives aimed at upholding the dignity and decorum of its legislative proceedings. In a significant move, Members of Parliament (MPs) are now explicitly prohibited from engaging in share trading activities while inside the parliament hall during sessions. This directive, issued by Speaker Dol Prasad Aryal following a meeting of the Business Advisory Committee on Wednesday, underscores a renewed focus on parliamentary discipline and public trust. Speaker Aryal emphasized that the primary role of an MP during parliamentary sessions is to engage in legislative duties, debate, and represent their constituents. Activities such as stock trading via mobile phones or laptops are deemed inconsistent with the solemnity and importance of parliamentary proceedings. This ban is expected to ensure that MPs remain fully focused on their legislative responsibilities, free from distractions that could compromise their attention or create perceptions of conflict of interest. The move comes amidst growing public scrutiny over the conduct of public officials and the need for greater transparency in governance. Beyond the prohibition on share trading, the Speaker also issued strict instructions regarding the dress code and personal appearance of MPs. All members are now mandated to wear the prescribed uniform and prominently display the official parliamentary logo. Furthermore, the use of dark glasses within the parliament hall is now restricted, permissible only with a valid medical recommendation. This particular directive addresses a recent internal debate within the parliament concerning the attire and accessories of some members, which had reportedly raised questions about parliamentary decorum. The Speaker's office highlighted that these measures are essential to maintain the sanctity and respect associated with the highest legislative body of the nation. The Business Advisory Committee meeting, where these decisions were finalized, also delved into broader discussions about enhancing the overall discipline of MPs and streamlining the conduct of parliamentary sessions. Speaker Aryal has called upon the chief whips and whips of all political parties to ensure rigorous compliance with these new rules by their respective members. This collective responsibility is crucial for fostering an environment of professionalism and accountability within the parliament. For investors and the general public, these directives, while not directly impacting market mechanisms, signal a broader commitment to good governance and ethical conduct among public representatives. In a developing economy like Nepal, where the capital market is still maturing, maintaining high standards of integrity in all public spheres is paramount. The perception of MPs being distracted by personal financial transactions during official duties could erode public confidence in the legislative process and, by extension, in the stability and fairness of the economic environment. Therefore, these measures, though seemingly administrative, contribute to a healthier overall governance framework that indirectly supports a more predictable and trustworthy investment climate. The emphasis on discipline and focus within the parliament is a positive step towards strengthening institutional integrity, which is a foundational element for long-term economic development and investor confidence.
Nepal's Special Court Demands NPR 1 Crore Bail in Landmark NPR 3.78 Billion Money Laundering Case Against Rishiraj Mor
In a significant development for Nepal's financial and legal landscape, the Special Court has ordered Rishiraj Mor, the primary defendant in a high-profile money laundering case exceeding NPR 3.78 billion, to post a bail of NPR 1 crore. This directive, issued by a bench comprising Judges Narayan Prasad Paudel, Dilliratna Shrestha, and Umesh Koirala on Shrawan 21 (August 6, 2024), follows extensive detention hearings and underscores the judiciary's firm stance against financial misconduct. The allegations against Mor are substantial and multifaceted. He stands accused of misusing funds belonging to Himalayan Re-insurance Company Limited, a public entity, to artificially inflate share prices in the securities market. Furthermore, he is charged with concealing illegally acquired wealth, a core component of the money laundering accusation. The Special Government Attorney's Office initiated the legal proceedings against Mor, claiming a disputed amount (bigo) of NPR 3,78,82,75,622.90, and has filed the case under the provisions of the Asset Laundering Prevention Act, 2064. The charges detail a sophisticated scheme of market manipulation and financial impropriety. According to the indictment, Mor allegedly colluded with other defendants to orchestrate a scenario that caused financial detriment to Himalayan Re-insurance. This involved manipulating the stock market to create an artificial surge in share prices. It is further claimed that Mor, on various occasions, diverted funds from Himalayan Re-insurance to purchase shares in his own name. The prosecution asserts that he collaborated with Bhrikuti Stock Broking Company Pvt. Ltd. to influence market dynamics, thereby generating substantial illicit profits. To obscure the origins of these illegally acquired funds, Mor is accused of engaging in deceptive practices and concealing the true nature of his assets. These actions form the basis of the money laundering charges, prompting the court to advance the legal process against him. During his testimony before the court, Rishiraj Mor vehemently denied all accusations, asserting his innocence. He maintained that he is merely an ordinary share investor who conducted transactions by utilizing margin facilities provided by brokers, and therefore, he should be acquitted of the charges. However, the court, after a thorough review of the evidence presented in the case file, the details of the complaint, and the transaction records involving Bhrikuti Stock Broking, concluded that it could not immediately deem him innocent. Consequently, the court ordered Mor to furnish a cash bail of NPR 1 crore or an equivalent bank guarantee to secure his release on a specified date. The order explicitly states that failure to comply with this bail requirement will result in his immediate detention and transfer to prison. This decision highlights the court's commitment to ensuring accountability in cases of alleged financial fraud and market manipulation. The legal battle saw robust representation from both sides. Deputy Attorney Badri Kumar Karki argued on behalf of the Nepal Government, while Senior Advocate Shambhu Thapa, alongside Advocates Samir Sharma and Raman Kumar Karna, represented Rishiraj Mor. This high-stakes case is expected to have significant implications for corporate governance and regulatory oversight within Nepal's capital market, reinforcing the importance of transparency and investor protection.
Nepal's Parliamentary Committee Directs Hydropower Companies to Issue Shares to Locals at Face Value, Paving Way for Billions in IPOs
The Nepali Parliament's Finance Committee has issued a landmark directive, instructing the government and regulatory bodies to ensure that local residents affected by hydropower projects receive shares at their अंकित मूल्य (face value) of NPR 100 per share, rather than at a premium. This significant decision aims to resolve long-standing disputes and address the dissatisfaction among local communities that arose from some hydropower companies attempting to issue shares at premium prices. The directive, which has been forwarded to the government, the Ministry of Finance, the Ministry of Energy, Water Resources and Irrigation, and the Nepal Securities Board (SEBON), mandates immediate implementation. This move is expected to clear the path for the issuance of primary shares (IPOs) from 34 hydropower projects currently in SEBON's pipeline, collectively valued at approximately NPR 17.71 billion. These projects have been stalled due to the ambiguity surrounding premium pricing for local allocations. According to Mr. Laxman Aryal, Secretary of the Finance Committee, the legal intent behind the provision for allocating 10% of shares to directly affected local residents has always been for these shares to be offered at face value. He emphasized the seriousness of the directive, stating, "This directive cannot be disregarded under any pretext. If implementation faces any hurdles, the committee must be informed within 30 days." This firm stance underscores the committee's commitment to ensuring equitable participation and addressing the concerns of project-affected communities. The issue of premium share issuance to locals had previously created a significant trust deficit between project developers and local communities. Critics argued that premium pricing limited access for locals and diminished their sense of ownership in projects that directly impacted their lives and environment. The Independent Power Producers' Association, Nepal (IPPAN), had also been a vocal advocate for issuing shares to locals at face value, recognizing the importance of community buy-in for the successful execution and long-term sustainability of hydropower projects. Mr. Mohan Kumar Dangi, Chairman of IPPAN, lauded the committee's directive as a welcome development. He highlighted the previous dilemma: "On one hand, regulations mandated share allocation to locals, and on the other, delays in issuance due to premium pricing created significant uncertainty. This decision will now facilitate the progression of stalled IPO processes and ensure the active participation of local communities in these vital national projects." This sentiment reflects a broader industry consensus that clarity and fairness in local share allocation are crucial for the sector's growth. The directive is rooted in the Securities Registration and Issuance Regulations, 2073, specifically Rule 9, Sub-rule (4), which stipulates that organized institutions must allocate up to 10% of their issued capital to project-affected local residents. The latest instruction from the parliamentary committee unequivocally clarifies that locals will no longer be required to pay a premium for these shares, reinforcing the original spirit of the regulation. This decision is poised to have a multifaceted impact on Nepal's capital market and hydropower sector. By removing the premium barrier, it democratizes investment opportunities for local communities, fostering a stronger sense of ownership and partnership in national development initiatives. For hydropower developers, while it means foregoing potential premium revenue from local allocations, the expedited IPO process and enhanced community relations could lead to smoother project execution and reduced social risks. Furthermore, it sets a precedent for future infrastructure projects, emphasizing inclusive growth and equitable distribution of benefits. The move is expected to boost investor confidence among locals and potentially attract broader participation in the primary market, contributing to the overall depth and liquidity of the Nepalese stock exchange. This strategic intervention by the parliamentary committee is a crucial step towards aligning capital market practices with social equity goals, ensuring that the benefits of Nepal's burgeoning hydropower sector are shared more broadly across its population.
Nepal's Electricity Regulatory Commission Unveils New Tariff Directive: A Game Changer for Power Sector Investment and Consumer Transparency
The Electricity Regulatory Commission (ERC) of Nepal has introduced a landmark 'Electricity Consumer Tariff Determination Directive, 2083,' marking a significant stride towards enhancing transparency and consumer-friendliness in the nation's power sector. This new directive, which supersedes the previous 2076 guideline, is poised to reshape how electricity tariffs are calculated and implemented, with profound implications for both investors in the energy sector and the general populace. At its core, the directive mandates a cost-based approach to tariff setting. This means that future electricity rates will be meticulously determined by factoring in a comprehensive range of operational and financial costs. Key components include the actual cost of electricity purchase, operational and maintenance expenses, employee salaries, interest on loans, depreciation, income tax, and crucially, a stipulated return on equity for the companies involved. This granular approach aims to ensure that tariffs accurately reflect the true cost of power generation, transmission, and distribution, fostering a more equitable and sustainable financial model for the sector. A pivotal aspect of the new directive is the establishment of clear ceilings on the return on equity (RoE) for different segments of the electricity business. Specifically, the directive allows for a maximum RoE of 16% for electricity generation companies, 15.5% for transmission entities, and 16.5% for distribution licensees. This move is designed to provide a predictable investment environment while preventing excessive profiteering. Furthermore, to incentivize efficiency and timely project execution, the directive offers an additional 1% incentive RoE for projects completed within their stipulated timelines or for distribution companies that successfully reduce their system losses. This mechanism encourages better management and operational excellence, ultimately benefiting the entire value chain. The process for proposing and approving new tariffs has also been streamlined and made more rigorous. Distribution licensees are now required to submit their tariff proposals to the ERC at least 120 days prior to the commencement of a new fiscal year. While only one tariff determination application is permitted per fiscal year, a mandatory review application must be submitted at least once every three years. This ensures regular scrutiny and adjustment of tariffs to reflect changing market dynamics and operational realities. Crucially, the directive emphasizes mandatory public hearings as an integral part of the tariff determination process. This provision underscores the ERC's commitment to transparency and allows for stakeholder engagement, ensuring that consumer voices and industry perspectives are heard before final decisions are made. Following each fiscal year, the ERC will also conduct a thorough review of actual income and expenditure, enabling necessary tariff adjustments to maintain financial viability and fairness. Regarding implementation, the newly determined tariff rates will come into effect 30 days after their official public notification. Until such new rates are formally established and announced, the currently prevailing tariffs will remain in force, ensuring continuity and avoiding any immediate disruptions. Ram Prasad Dhital, Chairman of the Electricity Regulatory Commission, highlighted that the directive comprehensively addresses the considerations that entities like the Nepal Electricity Authority (NEA) and other relevant organizations must take into account when proposing tariffs. He reiterated that the new rates would only be implemented after thorough discussions, public hearings, and the final approval of the Commission. For investors, particularly those eyeing Nepal's burgeoning hydropower sector, this directive brings a new layer of regulatory clarity and predictability. The defined RoE caps, while setting limits, also provide a baseline for expected returns, which can be crucial for financial modeling and investment decisions. The incentive for efficiency and timely project completion could spur greater discipline and performance among power developers. For consumers, the cost-based and transparent tariff determination process, coupled with mandatory public hearings, offers greater assurance of fair pricing and accountability from service providers. This directive is a significant step towards a more mature, transparent, and sustainable electricity market in Nepal, fostering investor confidence and safeguarding consumer interests in the long run.
Sun Nepal Life Insurance CEO Rajkumar Aryal Reinstated After Four-Month Absence Amid CIB Probe
Sun Nepal Life Insurance Company Limited (SNLIC) has announced the reinstatement of its Chief Executive Officer (CEO), Mr. Rajkumar Aryal, who has returned to his duties after a four-month absence. This development follows a period of intense scrutiny and a high-profile investigation by the Central Investigation Bureau (CIB) of Nepal Police. Mr. Aryal was initially apprehended by the CIB on March 29 (Chaitra 16) on serious allegations concerning the arbitrary distribution of 490,000 shares that were specifically reserved for company employees. The charges brought against him underscored a broader concern regarding corporate governance and transparency within the financial sector, particularly in the allocation of shares to internal stakeholders. Such actions, if proven, could significantly undermine investor confidence and regulatory compliance. However, Mr. Aryal's detention was relatively short-lived. He was released on April 8 (Chaitra 26) after the Kathmandu District Government Attorney's Office declined to extend his remand for a second time. This decision was a pivotal moment, signaling a potential lack of sufficient evidence at that stage to warrant continued custody. Subsequently, the CIB did not submit an investigation report to initiate a formal prosecution, which ultimately paved the way for his return to the company. The decision for Mr. Aryal to resume his role was made during a Board of Directors meeting held on Thursday. The company's announcement confirms his return to his previous position, aiming to restore leadership stability and operational continuity. For investors, the return of a key executive like the CEO can be a double-edged sword. While it might signal a return to normalcy and a resolution of the immediate legal challenges, the underlying issues that led to the investigation could still linger in the minds of stakeholders. This incident highlights the increasing vigilance of regulatory bodies and law enforcement agencies in Nepal regarding corporate malpractices, especially in publicly listed companies. The financial market thrives on trust and transparency, and any perceived deviation from ethical practices or regulatory guidelines can have far-reaching consequences on a company's reputation and stock performance. Sun Nepal Life Insurance, like other entities in the Nepalese financial landscape, operates under strict regulatory frameworks designed to protect shareholders and ensure fair market practices. Moving forward, Sun Nepal Life Insurance will likely face heightened scrutiny from investors and regulators alike. The company's ability to demonstrate robust corporate governance, transparent operational procedures, and a commitment to ethical conduct will be crucial in rebuilding and maintaining investor confidence. The reinstatement of Mr. Aryal, while a step towards leadership stability, also places a renewed emphasis on the company's internal controls and its adherence to the highest standards of corporate responsibility. Investors will be keenly watching how the company navigates this period and implements measures to prevent similar issues in the future, ensuring long-term value creation and market integrity.
Corruption Charges Filed Against Mayor and 10 Others in Rukum West Over Cooperative Grant Misappropriation
The Commission for Investigation of Abuse of Authority (CIAA) has initiated a significant legal action by filing a corruption case against Mayor Ravi KC of Aathbiskot Municipality, Rukum West, and ten other individuals. The charges, formally lodged with the Special Court in Kathmandu on Monday, stem from extensive irregularities identified in the disbursement and utilization of government grants allocated to the Aathbiskot Dairy Cooperative. This development underscores the government's commitment to combating corruption and ensuring accountability in public expenditure, particularly at the local governance level. According to the CIAA's detailed charge sheet, a substantial amount of public funds was allegedly misappropriated and misused for personal gain, rather than serving the intended community development objectives. The Aathbiskot Dairy Cooperative, located in Ward No. 9 of Aathbiskot Municipality, received two significant grants from the municipality. These included NPR 9,117,873 earmarked for the construction of a chilling center, a crucial infrastructure for dairy product preservation, and an additional NPR 8,023,051 designated for the purchase of vehicles to support the cooperative's operations and logistics. The total sum of these grants, exceeding NPR 17 million, was intended to bolster the local agricultural economy and empower dairy farmers within the community. However, a thorough investigation conducted by the anti-graft body revealed a stark discrepancy between the stated purpose of the grants and their actual implementation. Despite the passage of two years since the funds were disbursed, the dairy cooperative has reportedly failed to become operational. Furthermore, the government vehicles procured with the grant money were found to be used for personal errands by individuals involved, subsequently left in a state of disuse, effectively rendering them unproductive assets rather than tools for community benefit. The CIAA's findings indicate a deliberate disregard for established procedures, with grants being released to an institution that reportedly did not meet the necessary qualifications, suggesting a clear intent to misuse public resources and bypass due diligence processes. The list of individuals implicated in this high-profile case extends beyond the Mayor. Among the accused from the municipal administration are Maniraj Shah, the then Chief Administrative Officer; Suwarna Singh Thakuri and Gyanu Kumar Sharma, who served as acting heads of the Animal Hospital and Livestock Service Office; Sher Bahadur Khadka, the Livestock Service Officer; Yam Bahadur Pun, the Accounts Officer; and Min Bahadur KC, the Agriculture Officer. These officials are alleged to have facilitated the misuse of public funds by preparing erroneous reports and failing to conduct objective field evaluations, thereby circumventing due diligence processes and enabling the misappropriation. In addition to the municipal staff, key officials of the Aathbiskot Dairy Cooperative are also facing charges. These include Chairman Janak Batala, Vice Chairman Bir Bahadur Rokaya, Secretary Govinda Prakash Khadka, and Treasurer Jun Kumari Chanel. They are accused of direct involvement in the embezzlement and misuse of the government grants, failing in their fiduciary duties to manage the cooperative's assets responsibly and transparently, and ultimately depriving the community of the intended benefits. The CIAA has invoked the Prevention of Corruption Act, 2059, in its legal pursuit. The commission is seeking not only the recovery of the embezzled funds but also demands significant fines and imprisonment for all the accused individuals. According to CIAA spokesperson Suresh Neupane, the state has incurred substantial financial losses due to these alleged corrupt practices, and the commission is pushing for stringent penalties to serve as a deterrent against future acts of corruption. This case highlights the critical need for robust oversight mechanisms and transparent governance in the allocation and utilization of public funds, particularly those intended for grassroots development initiatives through cooperatives. The outcome of this case will be closely watched as it could set a precedent for accountability in local governance and cooperative management across Nepal, reinforcing public trust in institutions.
Nabil Bank Reports Strong Q4 Performance for Recently Concluded Fiscal Year, Signaling Robust Growth and Enhanced Dividend Potential
Nabil Bank Limited (NABIL), one of Nepal's premier commercial banking institutions, has recently unveiled its unaudited financial statements for the fourth quarter of the recently concluded fiscal year. The results paint a compelling picture of robust financial health and significant growth across key performance indicators, reinforcing the bank's strong position in the competitive Nepali financial landscape. According to the published figures, Nabil Bank has demonstrated commendable growth in its net profit, net interest income, and, consequently, its dividend capacity compared to the previous fiscal year. This impressive performance underscores the bank's strategic initiatives, efficient operational management, and its ability to navigate the dynamic economic environment effectively. The surge in net profit is a critical highlight for investors. It reflects a combination of factors, including healthy growth in its loan portfolio, prudent management of non-performing assets, and diversified income streams. A higher net profit directly translates to increased shareholder value and strengthens the bank's capital base, providing a solid foundation for future expansion and resilience against economic shocks. Investors often view strong net profit growth as a key indicator of a company's operational efficiency and market leadership. Furthermore, the significant increase in net interest income, which is the core revenue stream for any commercial bank, signals robust growth in Nabil Bank's lending activities and effective management of its interest rate spread. This metric is derived from the difference between the interest earned on loans and investments and the interest paid on deposits. A rising net interest income indicates successful asset-liability management and a growing customer base for both lending and deposit services. This sustained growth in core banking operations is vital for long-term profitability and stability. The enhanced dividend capacity, stemming from the strong financial performance, is particularly good news for shareholders. Banks typically distribute a portion of their profits as dividends, subject to regulatory approvals from Nepal Rastra Bank (NRB) and their own capital adequacy requirements. A healthy increase in dividend capacity suggests that Nabil Bank is well-positioned to propose attractive dividends, whether in cash or bonus shares, in its upcoming Annual General Meeting, rewarding its loyal investor base. This prospect often makes a stock more appealing to both existing and potential investors seeking regular returns. Nabil Bank's consistent performance and strategic focus on sustainable growth have cemented its reputation as a leader in Nepal's banking sector. Its commitment to digital transformation, customer-centric services, and responsible lending practices continues to drive its success. The bank's ability to deliver such strong results amidst varying economic conditions speaks volumes about its resilient business model and experienced management team. This positive financial trajectory is expected to further bolster investor confidence and contribute to the overall stability and growth of the Nepali capital market. In a separate development, unrelated to Nabil Bank's financial performance but relevant for residents in specific regions, the Nepal Electricity Authority (NEA) has announced a temporary power outage. Certain districts in Eastern Nepal, including Jhapa, Ilam, Panchthar, and Taplejung, along with Urlabari, Pathari, and surrounding areas of Morang, are scheduled to experience a 12-hour electricity service interruption. This outage, planned from 4 AM to 4 PM on Saturday, is attributed to essential testing and operation of equipment at the Keraun 132/33 kV substation in Morang, as well as the installation of dead-end towers for the Duhabi-Damak 132 kV transmission line. Such infrastructure upgrades are crucial for enhancing the reliability and efficiency of the national power grid, ensuring long-term energy security for the affected regions.
SEBON Unveils White Paper for Long-Term Development of Nepal’s Primary Capital Market
The Securities Board of Nepal (SEBON) has unveiled the “White Paper on the Development of Nepal’s Primary Capital Market, 2083” as part of its regulatory reform initiatives under the capital market policy for Fiscal Year 2083/84. The white paper has been introduced with the objective of bringing qualitative development to the public issuance system and establishing a long-term vision for the development of Nepal’s primary capital market. The document assesses the current state of Nepal’s primary capital market, existing legal and institutional limitations, and strategic reforms required over the coming decade. It also provides an integrated policy framework aimed at making the primary market more transparent, fair, competitive, efficient, technology-driven, and aligned with international best practices. The white paper covers regulatory developments in Nepal’s primary market to date, the current state of the capital market, major problems and challenges, proposed solutions, future strategies, and relevant international practices and experiences. SEBON has proposed a three-phase implementation strategy for the long-term development and reform of the primary capital market. Under the first phase, to be implemented within one year, the focus will be on policy and legal reforms, including amendments to relevant acts and regulations and a review of the existing book-building system. The second phase, planned for one to two years, will focus on institutional and technological strengthening. Key initiatives include the development of a Digital IPO Platform, e-KYC, RegTech, and SupTech systems to modernize and streamline market operations. The third phase, targeted for two to five years, will focus on advanced market development, including fully market-based price discovery and the participation of Qualified Institutional Buyers (QIBs) and anchor investors. The white paper also seeks to strengthen the due diligence responsibilities of issue and sales managers, auditors, and credit rating agencies. SEBON aims to make these institutions more effective, accountable, and responsible in the public issuance process. According to the board, the reform initiative goes beyond improving the IPO system. It is envisioned as a strategic reference policy document for Nepal’s broader economic transformation, with a focus on mobilizing long-term capital for national capital formation and enhancing the competitiveness of the private sector. SEBON has stated that the proposed reforms will be implemented gradually through policy, legal, procedural, and technological improvements, following continuous consultation with relevant stakeholders. The board expects the white paper to play an important role in increasing investor participation and financial literacy in the primary market, while also supporting the development of new and diversified primary market instruments. SEBON believes that the proposed reforms will contribute to the qualitative development of Nepal’s primary capital market and help mobilize the long-term capital required to support sustainable economic growth and transformation.
Nepal Rastra Bank to Collect Rs. 60 Billion Through 31-Day Deposit Auction
Nepal Rastra Bank (NRB) is set to raise Rs. 60 billion through a 31-day deposit collection instrument via a competitive bidding process as part of its monetary liquidity management. The central bank’s Monetary Management Department has called for bids from eligible banks and financial institutions for the deposit collection instrument, which will have a maturity period of 31 days. According to the notice issued by NRB, participating banks and financial institutions must submit their bids by 3:00 PM today through the central bank’s Online Bidding System (OBSS). The deposits will be collected at the interest rate determined through the bidding process, with both principal and interest scheduled to be repaid on Bhadra 22. Eligible institutions can submit bids starting from a minimum of Rs. 10 crore, with bid amounts required to be in multiples of Rs. 10 crore, up to the total amount called by the central bank. NRB will allocate the deposit collection amount by giving the highest priority to bids offering the lowest interest rate. Allocation will continue sequentially based on the quoted interest rates until the announced amount is fully allocated. If demand exceeds the amount available at the same interest rate, the amount will be allocated among the respective bidders on a pro-rata basis. Only Class ‘A’, ‘B’, and ‘C’ banks and financial institutions licensed by Nepal Rastra Bank are eligible to participate in the auction. Bidders are required to specify both the amount they wish to deposit and the interest rate they are willing to accept. According to NRB, the amount corresponding to accepted bids will be debited from the respective counterparty's account maintained at Nepal Rastra Bank and deposited into a separate account designated for the collected deposits. On the maturity date, the principal amount along with the applicable interest will be credited to the respective bank or financial institution's account maintained at NRB. The collected deposit amount cannot be included in the investment portfolio of the respective bidder. However, it may be counted toward the Statutory Liquidity Ratio (SLR) and liquidity ratio requirements as prescribed by Nepal Rastra Bank. The participating institutions will not be allowed to withdraw, return, or seek premature repayment of the collected deposits before the scheduled maturity date. The latest deposit collection auction is part of NRB's ongoing liquidity management operations, through which the central bank regulates liquidity in the banking system and helps maintain monetary and financial stability.
Gold Price Rises Again by Rs. 900 Per Tola; Check Today's Trading Rate
Gold prices have witnessed a moderate rise in the domestic market today, rising by Rs. 900 per tola to settle at Rs. 296,900 per tola, up from the previous rate of Rs. 296,000 per tola. The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) reported that Tejabi gold price also rises by Rs. 900 per tola to reach Rs. 296,200 per tola, compared to Rs. 295,300 per tola on the previous day. Similarly, silver prices moved in the same direction, rising by Rs. 10 per tola to Rs. 4,580 per tola from Rs. 4,570 per tola on the previous day.
Cash Dividend Declarations for Kumari Equity Fund, Kumari Dhanabriddhi Yojana and Kumari Sabal Yojana ; When's the Book Closure?
"Kumari Equity Fund (KEF)", "Kumari Dhanabriddhi Yojana (KDBY) and "Kumari Sabal Yojana (KSY)" have declared their dividends for the fiscal year 2082/2083. The 85th meeting of the board of directors of Kumari Capital Limited (KCL) held on Shrawan 21 has decided to distribute a 10% dividend (including tax) worth Rs. 10 Crore to Kumari Equity Fund (KEF), 10% dividend (including tax) worth Rs. 12.25 Crore to Kumari Dhanabriddhi Yojana (KDBY) and a 2.90% cash dividend (including tax) worth 2.15 Crores to the unitholders of Kumari Sabal Yojana (KSY) for the fiscal year 2081/82. "Kumari Equity Fund (KEF)", "Kumari Dhanabriddhi Yojana (KDBY) and "Kumari Sabal Yojana (KSY)" are closed-end mutual funds with a 10-year maturity period. These funds are sponsored by Kumari Bank Limited and managed by Kumari Capital Limited. For the month of Ashadh, KEF's Net Asset Value (NAV) is reported at Rs. 11.44. Similarly, the NAV of KDBY stands at Rs. 12.26 and NAV of KSY is 10.29. The book closure date is Bhadra 04. Thus, unit holders who maintained their holdings until the 3rd Bhadra are entitled to the dividend payout. Notice:
Ingwa Hydropower Resumes Partial Power Generation After Flood Damage
Ingwa Hydropower Limited (IHL) has resumed partial electricity generation from it's 9.7 MW Upper Ingwa Khola Small Hydropower Project which is located across Panchthar and Taplejung districts. The project had remained shut down after severe floods and landslides triggered by continuous rainfall on Jestha 9, 2083 causing extensive damage to key infrastructure, including the intake, pipeline, powerhouse, and transmission line. Following repair and maintenance works, the company brought unit 1 f the plant back into operation at 7:17 PM on Shrawan 21, 2083.Power generation has now resumed from one of the project's two generating units.
Upakar Laghubitta Swings to Rs. 5.61 Crore Profit in Q4; EPS Rises to Rs. 52.93
Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) has published its unaudited fourth-quarter financial results for the fiscal year 2082/83, showing a significant recovery in its financial performance. The company reported a net profit of Rs. 5.61 crores, compared to a net loss of Rs. 1.59 crores in the corresponding quarter of the previous fiscal year. The turnaround in profitability was reflected in the company's earnings per share (EPS), which stood at Rs. 52.93, compared to a negative EPS of Rs. 15.01 recorded in Q4 of FY 2081/82. Similarly, net worth per share increased by 20.23% to Rs. 305.54 from Rs. 254.12. Upakar Laghubitta's net interest income increased by 21.81% to approximately Rs. 21.53 crores, compared to Rs. 17.68 crores in the same period last year. The company reported an operating profit of Rs. 5.61 crores, marking a notable improvement from the Rs. 2.80 crores recorded in the corresponding quarter of the previous fiscal year. The company also witnessed a substantial reduction in impairment charges, which declined by 46.10% to Rs. 2.74 crores from Rs. 5.09 crores a year earlier. The lower impairment burden contributed to the improvement in the company's overall profitability. On the balance-sheet front, total borrowings declined by 26.70% to Rs. 67.80 crores. Similarly, loans and advances to customers decreased by 2.98% to Rs. 2.30 arba. Despite the significant improvement in profitability, the company's asset quality remained under pressure. The non-performing loan (NPL) ratio increased sharply to 9.97% from 4.85% in the previous fiscal year. The capital adequacy ratio (CAR) also declined to 8.23% from 9.30%. Meanwhile, the company's cost of funds improved, falling to 80.85% from 106.38%. At the end of Q4, Upakar Laghubitta's market price stood at Rs. 2,800, while its price-to-earnings (P/E) ratio stood at 52.90 times. Report: Major Financial Highlights: Particulars (In Rs '000) Upakar Laghubitta Bittiya Sanstha Limited Q4 2082/83 Q4 2081/82 Difference Paid Up Capital 106,148.20 106,148.20 0.00% Share Premium 0.00 0.00 Retained Earnings 4,888.35 -38,371.78 -112.74% Reserves 213,288.24 201,967.93 5.61% Borrowings 678,035.07 924,966.03 -26.70% Loans & Advances to Customers 2,303,616.51 2,374,463.80 -2.98% Net Interest Income 215,388.00 176,824.14 21.81% Personnel Expenses 113,331.00 109,820.50 3.20% Impairment Charges 27,436.00 50,901.72 -46.10% Operating Profit 80,260.00 22,857.36 251.13% Net Profit 56,182.00 15,928.17 252.72% Distributable Profit/ (Loss) after P/L Appropriation and Regulatory Adjustments 4,888.35 -38,371.78 - Capital Adequacy (%) 8.23 9.30 -11.51% NPL (%) 9.97 4.85 Cost of Fund (%) 80.85 106.38 -24.00% EPS (In Rs.) 52.93 15.01 252.72% Net Worth per Share (In Rs.) 305.54 254.12 20.23% Qtr end PE Ratio (times) 52.90 - - Qtr End Market Price 2800 - -