Latest NEPSE News & Share Market Updates
Nepal Attracts Over NPR 11 Billion in Foreign Investment Commitments in Early FY 2083/84, Fueling Tourism and Service Growth
Nepal has demonstrated a robust start to the fiscal year 2083/84, securing foreign direct investment (FDI) commitments exceeding NPR 11.12 billion (approximately USD 83.8 million) within the first two months (Shrawan and Bhadra). This significant inflow, channeled through 328 industrial ventures, is projected to create over 3,400 direct employment opportunities, signaling a positive trajectory for the nation's economic development and job market. The Department of Industry's monthly report for Bhadra highlights a notable shift in investor preference towards the 'Automatic Route' for investment approval. Out of the total 328 approved industries, an overwhelming 322 received clearance via the automatic mechanism, accounting for NPR 9.74 billion of the total commitment. This trend underscores the government's efforts to streamline the investment process, making it more efficient and appealing to foreign investors. The remaining six industries, with commitments totaling NPR 1.37 billion, were approved through the traditional 'Approval Route'. A deeper dive into the sectoral distribution reveals a clear preference among foreign investors. By value, the tourism sector emerged as the top choice, attracting 34% of the total committed capital, or NPR 3.74 billion, across 70 projects. This reflects growing confidence in Nepal's tourism potential, possibly buoyed by post-pandemic recovery efforts and strategic promotional initiatives. The service sector followed closely, securing 30% (NPR 3.30 billion) for 26 industries, indicating a diversified interest beyond traditional sectors. Energy projects also garnered substantial attention, with one major project alone attracting NPR 2 billion, representing 18% of the total FDI. The manufacturing sector received 11% (NPR 1.23 billion) for 18 industries, while agriculture saw a modest commitment of NPR 20 million for one project. Interestingly, when viewed by the number of registered industries, the Information and Communication Technology (ICT) sector dominated, accounting for 65% (212 industries) of all approved projects, albeit with a smaller capital commitment of NPR 816.9 million (7%). This suggests a proliferation of smaller, perhaps tech-driven, ventures that could contribute significantly to innovation and digital transformation. Notably, the mining and infrastructure sectors did not attract any foreign investment during this period, highlighting potential areas for future policy focus or investor outreach. The month of Bhadra alone contributed significantly to these figures, with commitments of NPR 6.35 billion from 136 industries, promising 983 new jobs. The majority of these approvals, 135 out of 136, were processed through the automatic route, further emphasizing its efficiency. Beyond direct industry registrations, additional investments totaling NPR 823.2 million were approved for 12 projects through Share Purchase Agreements (SPA) and Share Subscription Agreements (SSA) during the two-month period, with NPR 569.2 million from nine agreements specifically in Bhadra. Furthermore, eight Technology Transfer Agreements (TTA) were approved by the end of Bhadra, indicating a growing interest in bringing advanced technologies to Nepal. An analysis of industry size reveals a strong inclination towards small-scale ventures. Out of the 328 approved industries, 323 were classified as small, with only two medium and three large industries registered. This trend continued in Bhadra, with 134 small and two large industries, and no medium-sized ventures. This prevalence of small industries could foster local entrepreneurship and a more diversified economic base. While foreign investment flows into Nepal, there is also a natural outflow of funds in the form of repatriation. During the first two months of the fiscal year, foreign companies repatriated NPR 622 million, USD 791,717, and INR 3.97 million in royalties. Additionally, service fees amounting to NPR 2.31 million, USD 21,838, INR 19.9 million, and AUD 5.73 million were repatriated. These outflows are a normal part of international business operations, reflecting profits and service payments by foreign entities operating within Nepal. To facilitate this investment environment, the Department of Industry recommended business visas for 233 individuals, including 85 foreign investors, 62 authorized representatives, and 86 dependent family members. This proactive approach in visa facilitation underscores the government's commitment to creating an inviting ecosystem for foreign capital and expertise. The overall picture for Nepal's investment landscape in early FY 2083/84 appears promising, with strong commitments, a streamlined approval process, and a clear preference for key growth sectors like tourism and services.
Kathmandu Metropolitan City Eyes Economic Boost with Expanded Nighttime Public Transport
Kathmandu, the bustling capital of Nepal, is poised for a significant transformation in its urban mobility and economic vibrancy with the proposed expansion of public transport services into nighttime hours. Sunita Dangol, the Acting Chief of Kathmandu Metropolitan City (KMC), recently underscored the critical importance of this initiative, highlighting its potential to make the Kathmandu Valley a truly 24/7 dynamic hub. Her remarks came during the "Kathmandu Valley Night Bus Service Expansion Program" held in Lalitpur, where she emphasized that extending transport services is a fundamental responsibility of local government, crucial for fostering a more accessible and opportunity-rich urban environment. "The core responsibilities of local government include the expansion of local transport, and this should not be limited to daytime operations. Our transport services will now run at night too," Dangol stated, articulating a vision where "Kathmandu Valley is not just vibrant during the day; it will now be vibrant at night too." This strategic shift is expected to unlock new avenues for economic activity, enhance social connectivity, and improve the overall quality of life for residents and visitors alike. The initiative is not merely a proposal but builds upon a successful pilot program. According to Dangol, a trial nighttime bus service was launched on Baisakh 1 (April 14) of the current Nepali fiscal year. This initial phase covered two key routes: Budhanilkantha to Lagankhel in Lalitpur, and Airport to Chandragiri. The success of this trial period has been remarkable, with approximately 67,000 passengers utilizing the service within the first 90 days. This strong uptake demonstrates a clear public demand for extended transport options and validates the KMC's forward-thinking approach. For investors, this development signals potential growth in various sectors. A more active nighttime economy could stimulate demand for services in hospitality, retail, entertainment, and food and beverage industries. Businesses operating late hours would benefit from increased accessibility for both employees and customers, potentially leading to higher revenues and job creation. Furthermore, improved public transport infrastructure can enhance the attractiveness of Kathmandu as a tourist destination, encouraging longer stays and greater spending. The real estate sector might also see an impact, with areas along these extended routes becoming more desirable for both commercial and residential purposes. Beyond direct economic benefits, the expansion of night public transport is a crucial step towards creating a more inclusive and equitable city. It provides essential mobility for shift workers, students, and individuals participating in evening social activities, reducing reliance on expensive private transport options or unsafe walking conditions. This enhanced accessibility can foster greater social participation and reduce urban isolation, contributing to a healthier and more productive workforce. The KMC's vision extends beyond mere convenience; it views public transport as a catalyst for opportunity and access. By facilitating easier movement across the city at all hours, the administration aims to break down geographical barriers, connect communities, and ensure that all citizens can participate fully in the city's economic and social life. This progressive stance aligns with global trends in urban planning, where efficient and comprehensive public transport networks are recognized as fundamental pillars of sustainable and smart cities. Looking ahead, the successful implementation and potential expansion of this night bus service will require robust planning, investment in infrastructure, and effective public-private partnerships. The KMC's commitment to this initiative, backed by positive trial results, suggests a promising future for Kathmandu's urban landscape, making it a more dynamic, accessible, and economically vibrant capital for all. This move is expected to not only enhance the daily lives of its citizens but also position Kathmandu as a more attractive hub for investment and development in the long run.
Citizens Bank International Charts Future Growth with Strategic Review in Sudurpaschim Province
Citizens Bank International Limited (CBIL) recently concluded a pivotal strategic seminar in Sudurpaschim Province, underscoring its unwavering commitment to robust regional growth and operational excellence. Titled "Untapped Potential, Unified Action: Budget Achievement and Strategic Growth Review Sudurpashchim Province (FY 083/84)," the event brought together the bank’s provincial head, branch managers, and key employees to meticulously review past performance and forge a clear path for the current fiscal year. The seminar was graced by the presence of the bank’s Chief Executive Officer, Ganesh Raj Pokharel, along with the Deputy Chief Executive Officer and other senior executives. Such high-level participation signals the top management's direct involvement and strategic focus on regional development, emphasizing the bank's dedication to fostering a unified vision across its extensive network, particularly in provinces identified for significant growth opportunities. This hands-on approach by leadership is crucial for translating corporate objectives into actionable strategies at the grassroots level. A core component of the event was a comprehensive review of the bank's performance during the last fiscal year. This retrospective analysis is crucial for identifying areas of strength, pinpointing challenges, and understanding market dynamics specific to the Sudurpaschim region. Following this, extensive discussions were held on the budget allocations, strategic action plans, and key priorities for the current fiscal year (083/84). This forward-looking approach ensures that all regional teams are aligned with the bank's overarching objectives, enabling them to capitalize on local market potential, enhance service delivery, and achieve consistent financial results. Sudurpaschim Province, with its unique economic landscape and evolving financial needs, represents a significant frontier for banking institutions in Nepal. Citizens Bank International currently operates 10 branches across seven districts within the province, demonstrating a substantial footprint. The seminar's theme, "Untapped Potential, Unified Action," aptly reflects the bank's strategy to leverage the region's economic prospects through coordinated efforts and innovative financial solutions. By empowering its local teams with clear directives and strategic insights, CBIL aims to deepen financial inclusion, support local businesses, and contribute significantly to the overall economic development and prosperity of the province. This strategic review in Sudurpaschim is not an isolated event but part of a broader, nationwide initiative by Citizens Bank International. Similar successful seminars have already been conducted in Bagmati, Koshi, and Madhesh provinces, with plans underway to extend these crucial strategic discussions to other provinces across Nepal. This systematic approach highlights CBIL's commitment to decentralized planning and execution, ensuring that its growth strategies are tailored to the specific socio-economic contexts of each region while maintaining a cohesive national strategy. This integrated approach allows the bank to adapt to diverse market conditions while upholding its core values and objectives. For investors, these strategic seminars offer valuable insights into the bank's operational discipline and its proactive stance on performance management. They demonstrate a robust internal governance framework focused on accountability, target setting, and continuous improvement. By regularly engaging with its regional leadership and employees, Citizens Bank International is not only fostering a culture of high performance but also ensuring that its strategic objectives are effectively translated into actionable plans at the grassroots level. This commitment to meticulous planning and execution across its diverse operational landscape positions Citizens Bank International as a forward-thinking institution poised for sustainable growth in Nepal's dynamic financial sector. The emphasis on "unified action" suggests a strong internal synergy, which is a critical factor for achieving ambitious financial targets and delivering enhanced value to shareholders.
Nepal Bank Employees to Receive Life Insurance Coverage from National Life
National Life Insurance Company Limited and Nepal Bank Limited have signed an agreement to provide life insurance coverage to employees of Nepal Bank. The agreement was signed by Smriti Raj Kandel, Deputy CEO of National Life Insurance Company and Dipendra Raj Kafle, Assistant CEO of Nepal Bank Limited. Under the agreement, Nepal Bank employees will receive life insurance benefits aimed at strengthening their financial protection and managing risks. Officials from both institutions attended the signing ceremony and highlighted the role of life insurance in employee welfare and long-term financial security.
Prime Minister Shah Convenes Cabinet Meeting: Key Policy Discussions Expected Following Recent Capital Gains Tax Approval
The Nepali political landscape remains dynamic, with Prime Minister Balendra Shah convening a crucial Cabinet meeting today at 3:00 PM at the nation's administrative hub, Singha Durbar. While the Prime Minister's Office has maintained discretion regarding the specific agenda, the meeting is widely anticipated to address a range of pressing ministerial work processes and various public grievances that require immediate governmental attention. Such gatherings are pivotal in shaping the nation's policy direction and ensuring the smooth functioning of state affairs. This latest Cabinet session follows closely on the heels of a significant meeting held just two days prior, which saw the approval of revised capital gain tax rates. This decision, a key development for the financial markets, established a 3.5% capital gain tax for short-term investors and a 5% rate for long-term investors. These rates are crucial for market participants, directly influencing investment strategies and the overall attractiveness of the Nepal Stock Exchange (NEPSE). Capital gain tax, levied on the profit realized from the sale of non-inventory assets, including stocks, plays a vital role in government revenue generation and can significantly impact investor sentiment. The differentiation between short-term and long-term gains is a common practice globally, often aimed at encouraging long-term investment over speculative trading. For investors, understanding the implications of these tax adjustments is paramount. A 3.5% rate for short-term gains (typically defined as investments held for less than a year) and a 5% rate for long-term gains (investments held for a year or more) could subtly shift trading patterns. While these rates are generally considered moderate, their introduction or revision always warrants close observation. They reflect the government's stance on market regulation and its efforts to balance revenue needs with fostering a conducive investment environment. The clarity provided by these approved rates removes a layer of uncertainty that might have previously existed, potentially leading to more predictable market behavior. Beyond the tax implications, the undisclosed agenda of today's meeting, focusing on "ministerial work processes and various public grievances," suggests a broader governmental focus on administrative efficiency and citizen welfare. Decisions made in these areas can have ripple effects across various sectors, from infrastructure development and public services to regulatory frameworks impacting businesses. For instance, discussions on public grievances might lead to policy changes in specific industries or regions, which could, in turn, affect the operational environment for listed companies. Investors often look for stability and predictability in government policy, as these factors directly contribute to business confidence and economic growth. The frequent convening of Cabinet meetings underscores the government's active engagement in governance and policy formulation. While the immediate details remain under wraps, the outcomes of such high-level discussions often translate into directives and policies that shape Nepal's economic trajectory. The financial community will be keenly observing any subsequent announcements from the Prime Minister's Office or relevant ministries, as these could provide further insights into the government's priorities and potential impacts on the investment landscape. In an evolving market like NEPSE, governmental actions, particularly those related to taxation and economic policy, are critical determinants of market direction and investor confidence. The government's commitment to addressing both economic policy and public concerns simultaneously indicates a holistic approach to national development.
Muktinath Bikas Bank Launches Special Home Loan Scheme
Muktinath Bikas Bank Limited has launched a special home loan scheme targeting Dashain, Tihar, and Chhath, as well as its participation in NADA Auto Show 7 and Housing and Construction Expo 2026. Under the scheme, customers can avail home loans at an interest rate of Base Rate + 0.25% for house construction, home purchase, and other housing needs. The bank will finance up to 70% of the assessed property value, while first-time home buyers can receive financing of up to 80%. The scheme will remain valid until the end of Kartik 2083, after which the bank’s prevailing interest rates and loan terms will apply. The facility is available through all 176 branches of the bank. Muktinath Development Bank is also offering special loan schemes for auto loans, agriculture, and SME businesses.
Kathmandu's Global Standing: Analyzing its Position in the 2026 Global Cities Index
The 2026 Global Cities Index, a comprehensive evaluation published by Oxford Economics, has positioned New York as the world's leading urban center, underscoring its unparalleled strength across various critical metrics. This prestigious index, which meticulously assesses 1,000 major cities worldwide, serves as a vital benchmark for urban development, economic competitiveness, and quality of life. While global powerhouses like London and Paris secured the second and third positions, respectively, Nepal's capital, Kathmandu, found itself at the 687th spot, highlighting both its current challenges and areas for potential growth on the international stage. The Oxford Economics Global Cities Index employs a robust methodology, evaluating cities across five broad and interconnected areas: economics, human capital, quality of life, environment, and governance. These pillars collectively paint a holistic picture of a city's attractiveness and functionality, influencing everything from investment flows to talent migration. New York's perfect score of 100, followed by London at 98.8 and Paris at 93.4, reflects their sustained excellence in fostering dynamic economies, nurturing diverse talent pools, providing high living standards, maintaining environmental quality, and ensuring effective city management. Other cities making it to the top ten include Seattle, San Francisco, Dublin, Boston, San Jose, Tokyo, and Zurich, each demonstrating specific strengths that contribute to their high global standing. For instance, London was recognized for its exceptional human capital, Honolulu for its superior environment, and Copenhagen for its exemplary governance. Kathmandu's overall ranking of 687th warrants a closer examination of its performance across these five key dimensions. In the economics category, the Nepali capital ranked 670th. This score reflects factors such as economic output, growth rates, and business dynamism. While Nepal has seen consistent economic growth in recent years, this ranking suggests that Kathmandu's economic infrastructure and opportunities still lag behind many global peers. Improving this aspect would require strategic investments in infrastructure, fostering a more business-friendly environment, and diversifying its economic base beyond traditional sectors. In terms of human capital, Kathmandu fared relatively better, securing the 562nd position. This category assesses the quality and quantity of a city's workforce, including education levels, talent attraction, and labor market participation. While this indicates a foundational strength in its human resources, there is still significant scope for enhancing educational institutions, promoting skill development, and creating opportunities to retain and attract skilled professionals. A strong human capital base is crucial for innovation and long-term economic prosperity. The most significant challenge for Kathmandu appears to be in the quality of life category, where it ranked a concerning 840th. This metric considers a wide array of factors, including income levels, income inequality, housing costs, life expectancy, crime rates, and access to essential services and cultural amenities. A low ranking here points to pressing issues such as inadequate urban infrastructure, high cost of living relative to income, and potentially limited access to quality healthcare and entertainment. Addressing these issues is paramount not only for the well-being of its residents but also for making the city more appealing to international investors and expatriates. Furthermore, Kathmandu's environmental ranking stood at 639th, and its governance ranking at 635th. The environmental score reflects aspects like air quality, green spaces, and climate resilience, areas where Kathmandu faces significant challenges due to rapid urbanization and pollution. The governance ranking, which evaluates the effectiveness and transparency of city administration, also indicates room for improvement. Strong governance is fundamental for efficient public service delivery, urban planning, and creating a predictable regulatory environment, all of which are critical for attracting and sustaining investment. For an investor audience, these rankings provide crucial insights into the operational environment and potential risks and opportunities within Kathmandu. A city's global standing in such an index can influence foreign direct investment decisions, as investors often seek locations with robust economies, skilled workforces, high quality of life for employees, sustainable environments, and stable governance. While Kathmandu's current position suggests significant hurdles, it also highlights areas where targeted policy interventions and strategic investments could yield substantial improvements. Enhancing urban infrastructure, promoting sustainable development, strengthening governance, and investing in human capital are not just about improving rankings; they are about building a resilient, attractive, and prosperous city that can compete effectively on the global stage and offer a more compelling proposition for both residents and investors alike. The insights from the 2026 Global Cities Index serve as a valuable roadmap for Nepal's policymakers and urban planners to strategize for a more competitive and livable Kathmandu in the years to come.
NEPSE Index Records 22.85 Points Gain ; 4 Banks Rank Among Top 5 Traded Companies
The Nepal Stock Exchange (NEPSE) recorded a double-digit gain on the last trading day of this week, gaining 22.85 points (0.87%) to close at 2,647.22. This follows an 11.93-point gain in the previous trading session. The benchmark index opened at 2,626.83 and fluctuated between an intraday high of 2,647.48 and a low of 2,614.12 before settling at the close. Total turnover for the day amounted to Rs. 6.74 Arba, with 21,272,761 shares traded across 345 companies through 64,072 transactions. The total market capitalization stood at Rs. 45.53 Kharba, with a float market capitalization of Rs. 15.43 Kharba. Kumari Bank Limited (KBL) topped the turnover chart, recording transactions worth Rs. 32.13 crores. The company’s stock closed at Rs. 227.00. Snow Rivers Limited (SNORL) led the gainer's list with a 13.66% gain. The stock closed at Rs. 1,057.00. Meanwhile, Hathway Investment Nepal Limited (HATHY) recorded the Highest fall, falling by 15.00%. The last traded price of the company was Rs. 499.80. Among sectors, the Banking SubIndex recorded the highest gain, gaining by 1.59%, while Others Index recorded the highest loss, down 0.11%.
Nepal Recommends Key Ambassadors to Global Powers, Signaling Strategic Diplomatic Push
The Government of Nepal has taken a significant step in bolstering its international relations by recommending ambassadors for 13 crucial countries. This strategic move, decided during a recent Council of Ministers meeting held at the Office of the Prime Minister, underscores Nepal's commitment to strengthening its diplomatic presence and fostering deeper ties with key global partners. The appointments are particularly noteworthy given the strategic importance of the nations involved, encompassing major economic powerhouses and long-standing allies. Among the most prominent recommendations are Dr. Nischal Nath Pandey for India, Dr. Kalyan Raj Sharma for China, Chiran Jung Thapa for the United States, and former Chief of the Army Staff Gaurav Shumsher Jung Bahadur Rana for the United Kingdom. These selections highlight a blend of academic expertise, leadership experience, and strategic acumen, crucial for navigating complex international landscapes. Additionally, Jigyān Kumar Thapa has been proposed for Japan and Suresh Kumar Karn for Israel, further diversifying Nepal's diplomatic outreach. Other key recommendations include Prapti Sherchan for Spain, Sharu Joshi for Germany, Dr. Padmakshi Rana for Oman, Chudamani Kharel for Malaysia, Prof. Dr. Sangam Shrestha for South Korea, Dr. Manchal Jha for Sri Lanka, and Giribahadur Sunar for Saudi Arabia. The strategic importance of these ambassadorial appointments cannot be overstated, especially for a developing economy like Nepal's, which heavily relies on foreign trade, investment, and development assistance. Ambassadors play a pivotal role in promoting bilateral trade, attracting foreign direct investment (FDI), facilitating tourism, and securing vital development aid. Strong diplomatic representation in countries like India and China, Nepal's immediate neighbors and largest trading partners, is vital for ensuring smooth transit, energy cooperation, and infrastructure development initiatives. For instance, the ambassador to India will be instrumental in addressing cross-border trade issues, facilitating energy deals, and managing the extensive socio-cultural and economic ties. Similarly, the envoy to China will focus on leveraging opportunities arising from the Belt and Road Initiative (BRI) and expanding trade corridors, which are crucial for Nepal's connectivity and economic diversification. Beyond its immediate neighbors, Nepal's diplomatic presence in Western economies like the United States and the United Kingdom holds immense significance. The US is a major development partner and a significant source of remittances and investment. An effective ambassador can advocate for Nepal's interests in trade preferences, educational exchanges, and technology transfer, all of which contribute to economic growth. The UK, with its historical ties and a substantial Nepali diaspora, remains a key partner for investment, tourism, and educational opportunities. The appointment of a former military chief to the UK could also signal an emphasis on security cooperation and strategic dialogue, alongside economic diplomacy. Furthermore, recommendations for Japan, a long-standing and generous development partner, are crucial for maintaining the flow of official development assistance (ODA) and attracting Japanese investment in critical sectors like hydropower and infrastructure. Appointments to countries like Germany and Spain in Europe, and South Korea, Malaysia, and Saudi Arabia in Asia and the Middle East, are equally important. These nations are significant destinations for Nepali migrant workers, and strong diplomatic ties are essential for protecting their rights, facilitating remittances, and exploring new avenues for trade and investment. For example, the ambassador to Saudi Arabia will play a critical role in managing labor relations and promoting the welfare of Nepali workers in the Gulf region, while envoys to South Korea and Malaysia will focus on similar objectives and expanding trade relations. The proposed ambassadors, chosen for their diverse backgrounds including academic research, leadership, and specialized expertise, are expected to bring a fresh perspective to Nepal's foreign policy objectives. Their mandate will extend beyond traditional diplomacy to actively engage in economic diplomacy, seeking out opportunities that directly benefit Nepal's economy and its citizens. This proactive approach is crucial for a developing nation aiming to enhance its global competitiveness and attract much-needed capital and technology. The process for these appointments involves several layers of scrutiny. The recommended individuals will first undergo parliamentary hearings, a crucial step that ensures transparency and accountability in the selection process. Following successful hearings, the government will seek approval (agrément) from the respective host countries. Only after receiving formal acceptance from these nations will the President of Nepal formally appoint the ambassadors. This multi-stage process underscores the importance and sensitivity of these high-level diplomatic roles. In conclusion, the recommendation of 13 ambassadors to strategically important nations marks a pivotal moment for Nepal's foreign policy. These appointments are not merely ceremonial but are integral to advancing Nepal's national interests, fostering economic growth, and enhancing its standing on the global stage. For investors and businesses, a stable and proactive foreign policy, underpinned by strong diplomatic representation, creates a more predictable and favorable environment for engagement, potentially paving the way for increased foreign investment and expanded trade opportunities that can positively impact the NEPSE and the broader Nepali economy.
Dirghayu Kumar Shrestha Appointed Nepal Electricity Authority Executive Director
Dirghayu Kumar Shrestha has been appointed as the Executive Director of the Nepal Electricity Authority (NEA). A meeting of the Council of Ministers held on Friday decided to appoint Shrestha to the position, according to government spokesperson Sasmit Pokharel. Shrestha had previously been serving as the Acting Executive Director of the NEA. He assumed the acting role after former Executive Director Hitendra Dev Shakya was automatically relieved of his position following an ordinance issued by the government on Baishakh 19. With Friday’s cabinet decision, Shrestha has now been formally appointed as the Executive Director of the state-owned power utility.
Nepal's Macroeconomic Landscape: A Snapshot of the First Month of FY 2026/27 (Ending Mid-August 2026)
Nepal Rastra Bank (NRB), the nation's central bank, has released its comprehensive report detailing Nepal's macroeconomic and financial situation for the first month of Fiscal Year 2026/27, concluding in mid-August 2026. This initial assessment provides crucial insights into the economic trajectory, highlighting key indicators that will shape investor sentiment and policy decisions in the months ahead. **Inflationary Pressures on the Rise** One of the most notable findings is the significant uptick in year-on-year consumer price inflation, which escalated to 5.96 percent in mid-August 2026. This marks a substantial increase from the 1.68 percent recorded during the same period a year prior, signaling growing inflationary pressures within the economy. A deeper dive reveals that food and beverages inflation reached 6.77 percent, outpacing non-food and services inflation, which stood at 5.52 percent. This divergence suggests that essential commodities are experiencing sharper price hikes, potentially impacting household purchasing power and overall economic stability. **Dynamic Shifts in Trade Balance** Nepal's merchandise trade landscape presented a mixed picture during the review period. Exports demonstrated robust growth, surging by 61.7 percent to Rs. 38.70 billion. This impressive performance was largely driven by increased shipments to India (up 71.0 percent), China (a remarkable 287.8 percent increase), and other countries (up 18.1 percent). Key export commodities included soybean oil, palm oil, polyester yarn and thread, jute goods, and particle board. Conversely, exports of Ayurvedic medicine, tanned skin, rosin, herbs, and Nepali paper products experienced declines. Meanwhile, merchandise imports also saw a considerable rise of 31.0 percent, reaching Rs. 187.44 billion. Imports from India, China, and other countries increased by 22.6 percent, 13.4 percent, and 69.0 percent, respectively, with petroleum products, chemical fertilizers, edible oil, oilseeds, and crude soybean oil being prominent contributors. Despite the export growth, the total trade deficit widened by 24.9 percent to Rs. 148.74 billion. Encouragingly, the export-import ratio improved to 20.6 percent from 16.7 percent a year earlier, indicating a relative strengthening of export performance against imports. **Remittances: A Sustained Lifeline** Remittance inflows, a critical pillar of Nepal's external sector stability, continued their upward trend. During the first month of FY 2026/27, remittances increased by 21.2 percent to Rs. 215.05 billion. In US dollar terms, inflows rose by 10.2 percent to USD 1.40 billion. This sustained growth in remittances provides vital foreign exchange, supporting the balance of payments and bolstering the nation's financial resilience. **Robust Foreign Exchange Reserves** Nepal's gross foreign exchange reserves demonstrated healthy growth, increasing by 1.2 percent to Rs. 3,946.23 billion (USD 25.84 billion) in mid-August 2026. This level of reserves is deemed adequate, capable of covering 21.8 months of prospective merchandise imports and 18.8 months of merchandise and services imports. The reserves-to-GDP, reserves-to-imports, and reserves-to-M2 ratios stood at 59.8 percent, 157.0 percent, and 44.5 percent, respectively, indicating a stable external position. The Nepalese rupee also appreciated by 0.9 percent against the US dollar during the review period, reaching a buying exchange rate of Rs. 152.39. **Government Finances and Banking Sector Dynamics** Government expenditure totaled Rs. 41.89 billion, with recurrent expenditure accounting for Rs. 21.40 billion. Total revenue mobilization reached Rs. 92.23 billion, primarily driven by tax revenue of Rs. 85.19 billion. The government's cash balance at Nepal Rastra Bank stood at a robust Rs. 361.81 billion. In the banking sector, deposits at BFIs saw a marginal decrease of 0.3 percent to Rs. 8,256.21 billion, while private sector credit increased by 0.4 percent to Rs. 5,880.64 billion. Interbank transactions among BFIs amounted to Rs. 127.28 billion, reflecting active liquidity management within the financial system. The average base rates for commercial banks, development banks, and finance companies were 4.72 percent, 6.14 percent, and 6.95 percent, respectively, notably lower than the previous year, suggesting an easing interest rate environment. **Balance of Payments and Market Trends** The Balance of Payments (BOP) maintained a surplus of Rs. 90.34 billion (USD 589.54 million), underscoring the nation's overall external stability. On the domestic equity front, the NEPSE index was recorded at 2,643.83 in mid-August 2025. Globally, commodity markets saw significant price increases, with Brent crude oil rising by 36.7 percent to USD 92.02 per barrel and gold prices increasing by 31.6 percent to USD 4,390.70 per ounce, potentially influencing domestic import costs and inflation. **Conclusion** The first month of FY 2026/27 presents a mixed but generally stable macroeconomic picture for Nepal. Strong remittance inflows and robust foreign exchange reserves continue to provide a buffer against external shocks. However, rising inflation, particularly in food items, and a widening trade deficit warrant close monitoring. The banking sector's performance and government fiscal management will be critical in navigating the economic landscape for the remainder of the fiscal year, offering both opportunities and challenges for investors.
Three Foreign Joint-Venture Banks in Nepal (EBL vs SBI vs SCB): A Comparative Financial Performance Review (Q4 2069/70 - Q4 2082/83)
Currently, three commercial banks are operating under joint ventures with foreign banks or institutions, and all three have been operating with foreign partners since their establishment. These three banks are Everest Bank Limited (EBL), Nepal SBI Bank Limited (SBI), and Standard Chartered Bank Nepal Limited (SCB). Here is the status of these banks with their shareholding details. These banks are considered healthier and more efficient and operate according to international practices while complying with the rules and regulations of the country in which they operate. Here, we will evaluate how these banks performed over the last fourteen years at the fourth quarter (Q4 2069/70 to Q4 2082/83). Balance Sheet (Major Indicators) Assets 1. Cash and Cash Equivalents Looking at cash and cash equivalents, SCB has held the highest level of cash and cash equivalents since Q4 2075/76. In Q4 2082/83, SCB reached its highest level of cash holdings at Rs. 56.18 billion, which led to its CD ratio falling to 47.26%. The cash position of SBI sharply increased in the last year, Q4 2082/83, from Rs. 5.14 billion to Rs. 32.33 billion, an increase of 528% compared to Q4 2081/82. This was because of excess liquidity in the market and a contraction in loan demand. Meanwhile, EBL has been able to maintain its cash position at around Rs. 10 billion, which is not significantly different from previous years. This shows balanced business strategy, while its deposit growth has also been remarkable. 2. Loans and Advances to Customers Loans and advances to customers are a core business of banks. Among the compared banks, EBL has the highest loan portfolio to customers. As of Q4 2082/83, EBL had provided loans to customers amounting to Rs. 235.56 billion, followed by SBI with Rs. 146.07 billion. Meanwhile, SCB hasn't focused on loan expansion, with Rs. 66.03 billion in its loan portfolio. The trend of loans to customers for EBL and SBI is increasing, and both reached their highest levels during the recent review period. Meanwhile, SCB peaked in Q4 2078/79, with loans to customers amounting to Rs. 79.17 billion and afterward did not appear to reach this level again, as SCB has been holding more cash and cash equivalents. 3. Total Assets Looking at the base year taken for this study (Q4 2069/70), the total assets of EBL, SBI, and SCB were Rs. 66.54 billion, Rs. 64.79 billion, and Rs. 45.94 billion, respectively, representing relatively same range of asset sizes among the banks. After 14 years, EBL had assets of Rs. 383.75 billion, SBI have assets of Rs. 248.35 billion, and SCB stood at Rs. 180.06 billion. Compared with the base year, EBL increased its assets by 5.76 times, SBI by 3.83 times, and SCB by 3.91 times. Another positive aspect of these banks is the trend in total assets. The total assets of all three banks have been increasing over the period, indicating that the banks have continuously expanded and are becoming larger asset-based institutions. Liabilities 1. Deposits from Customers One of the core businesses of a bank is collecting deposits from customers. Deposits are also a major liability of banks. Looking at the deposit collection of these three banks, as of Q4 2069/70, deposits from customers of EBL, SBI, and SCB were Rs. 57.72 billion, Rs. 58.92 billion, and Rs. 39.46 billion, respectively. In Q4 2082/83, deposits from customers of EBL, SBI, and SCB reached Rs. 316.01 billion, Rs. 212.82 billion, and Rs. 147.68 billion, respectively. Over the 14-year review period, EBL increased its deposits by 5.47 times, SBI by 3.61 times, and SCB by 3.71 times. Deposits from customers of all three banks are on an increasing trend. All of them achieved historically high levels of deposits. 2. Total Liabilities (Excluding Equity) Looking at total liabilities, in the base year of the study, Q4 2069/70, EBL and SBI had similar amounts of total liabilities, amounting to Rs. 60.90 billion and Rs. 60.82 billion, respectively. At that time, SCB's total liabilities were Rs. 40.58 billion. Over the period, EBL, SBI, and SCB increased their total liabilities by 5.72 times, 3.73 times, and 3.87 times, respectively, reaching Rs. 348.56 billion, Rs. 226.28 billion, and Rs. 157.38 billion. This shows a steadily increasing trend. 3. Share Capital and Total Equity As of Q4 2082/83, the paid-up capital of EBL, SBI, and SCB stood at Rs. 13.72 billion, Rs. 11.33 billion, and Rs. 10.04 billion, respectively. As of Q4 2082/83, the total equity of EBL, SBI, and SCB stood at Rs. 35.19 billion, Rs. 22.07 billion, and Rs. 22.67 billion, respectively. The total equity of EBL, SBI, and SCB increased by 6.24 times, 5.55 times, and 4.23 times, respectively, during the review period. Profit and Loss 1. Interest Income Interest income is impacted by increased competition in the market as well as policy measures taken to stabilize interest rates by NRB. As of Q4 2069/70, the interest income-to-expense margin for EBL, SBI, and SCB was 44%, 61%, and 24%, respectively. Now, it has increased to 54%, 63%, and 46%, respectively. Currently, the interest earnings of these banks are as follows. Interest income is observed to be on a declining trend. 2. Net Interest Income Based on Q4 2082/83, EBL earned the highest net interest income. SBI followed EBL with a wider gap, while SCB remained on its own pace. Over the overall period, EBL has been on an increasing trend and has achieved higher levels of net interest income. SCB, meanwhile, appears to be on a declining trend. 3. Total Operating Income The total operating income of the three commercial banks, EBL, SBI, and SCB, from Q4 2069/70 to Q4 2079/80 shows a similar trend in earnings. All these banks showed similar trends in total operating income. Afterward, EBL continued to grow, while the total income of SBI and SCB declined. 4. Profit for the Period The profit for the period of the three commercial banks, EBL, SBI, and SCB, from Q4 2069/70 to Q4 2079/80 shows a similar trend in earnings. All these banks showed similar trends in profit for the period. Afterward, EBL continued to grow, while the profit of SBI and SCB declined. Trends in Key Performance Indicators Earnings Metrics 1. Basic Earnings per Share (EPS) EBL recorded the highest EPS among the three banks during most of the review period, but declined from Rs. 83.53 in Q4 2069/70 to Rs. 36.95 in Q4 2082/83. SBI's EPS fell from Rs. 32.94 to Rs. 9.26, while SCB declined from Rs. 65.70 to Rs. 12.57. All three banks experienced a significant decline in per-share earnings over the long term, despite some recovery in the later years. 2. Net Worth per Share EBL's net worth per share declined from Rs. 342.06 to Rs. 256.47 over the review period, with considerable fluctuations in between. SBI increased from Rs. 168.67 to Rs. 194.73, while SCB declined from Rs. 289.07 to Rs. 225.77. The figures show different trends in shareholders' equity across the three banks. Efficiency Measures 3. Return on Equity (ROE) EBL's ROE declined from 26.10% to 14.41%, despite recovering from its low of 8.84%. SBI's ROE fell from 22.13% to 9.26%, while SCB declined from 22.73% to 12.57%. Overall, ROE remained lower in the later years than at the beginning of the review period. 4. Return on Assets (ROA) EBL's ROA decreased from 2.21% to 1.32%, while SBI declined from 1.27% to 0.82%. SCB also declined from 2.65% to 1.58%, despite recording higher ROA in several earlier years. Overall, the three banks experienced weaker asset profitability compared with the beginning of the review period. 4. Total Dividend EBL's dividend declined from 60.53% to 20%, despite reaching a peak of 73.675% in Q4 2072/73. SBI's dividend decreased from 20% to 9%, while SCB declined from 50% to 19% after reaching a peak of 105.26%. Overall, dividend distribution was considerably lower in the later years compared with the earlier period. Data Source: The data used in this article has been obtained from SS Pro by ShareSansar.
Nepal's Finance Minister Dr. Swarnim Wagle Extends Open Invitation to Indian Investors for Strategic Partnership
In a significant move to bolster foreign direct investment and deepen bilateral economic ties, Nepal's Finance Minister, Dr. Swarnim Wagle, has issued a compelling call to Indian investors, industrialists, and business leaders to actively explore and expand their presence in Nepal. During his recent three-day official visit to New Delhi, Dr. Wagle addressed a high-profile trade and investment interaction program organized by the Confederation of Indian Industry (CII) at the India Habitat Centre, emphasizing that 'this is an opportune time for investment in Nepal.' Minister Wagle's address was a cornerstone of his diplomatic engagement, aimed at positioning Nepal not merely as a neighboring market but as a strategic partner for investment, production, value addition, and integration into regional and global supply chains. He urged Indian companies already operating within Nepal to consider expanding their existing investments, while simultaneously encouraging new entrants to delve into the burgeoning opportunities the Nepali market presents. The event saw robust participation from prominent Indian business leaders and private sector representatives, signaling a keen interest from the Indian side. Highlighting Nepal's commitment to fostering a conducive investment climate, Dr. Wagle underscored the government's steadfast agenda focused on good governance, sustained economic prosperity, streamlined investment facilitation, and comprehensive structural economic transformation. He detailed the ongoing efforts to accelerate policy reforms, aiming to cultivate a more predictable, transparent, and unequivocally investor-friendly business environment. These initiatives, he clarified, are being implemented through strategic annual budgets, targeted tax reforms, and a suite of investor-centric policy measures designed to dismantle investment barriers and catalyze private sector-led economic growth. The Finance Minister meticulously outlined several high-growth potential sectors where Indian investment could yield substantial returns. These include the rapidly expanding digitalization landscape, the vast potential of clean energy, the lucrative domain of high-value agriculture, the burgeoning wellness tourism industry, and the manufacturing sector, particularly those based on innovative production partnership models. Dr. Wagle articulated a vision where these sectors would emerge as pivotal drivers of Nepal's economic resurgence, offering a fertile ground for mutually beneficial collaborations. The long-standing and robust economic relationship between Nepal and India serves as a powerful bedrock for this renewed push for bilateral trade and investment expansion. Dr. Wagle emphasized the inherent advantages of this historical bond, which provides a stable and familiar framework for Indian businesses looking to venture into or expand within Nepal. The interaction program itself bore testament to this potential, with Indian business leaders and CII members expressing profound interest in exploring these avenues. Discussions revolved around potential areas of cooperation, with participants actively seeking further insights into Nepal's investment policies, available facilities, specific sectoral opportunities, and the overall business environment. Beyond the direct appeal for investment, Minister Wagle's visit encompassed broader high-level discussions with Indian officials and the business community on strengthening various facets of Nepal-India economic cooperation. These included critical areas such as enhanced connectivity, energy collaboration, and post-disaster reconstruction efforts, painting a holistic picture of a comprehensive bilateral partnership. This strategic engagement is expected to fortify the relationship between the Government of Nepal and the Indian private sector, paving new pathways for increased Indian investment and business collaboration, ultimately contributing to Nepal's economic dynamism and regional integration. The government's broader commitment to economic reform, including a 21-point action plan to strengthen and revive Nepal's capital market through primary market reforms, new financial instruments, institutional brokerage improvements, and tax system reviews, further underscores its dedication to creating a robust and attractive investment ecosystem for both domestic and international players.
Nepal's Banking Sector: Over-Reliance on Asset-Backed Lending Stifles Project Finance and Innovation
Nepal's financial landscape is currently grappling with a significant challenge: an overwhelming reliance on asset-backed lending, which is actively discouraging project financing and hindering economic innovation. This critical issue was recently highlighted by Guru Prasad Paudel, Executive Director of Nepal Rastra Bank (NRB), who revealed that a staggering 67% of all loan disbursements in the country are secured by physical assets. Paudel emphasized that this pervasive collateral-based lending system inadvertently discourages banks and financial institutions from undertaking thorough project feasibility studies and robust risk assessments. Instead of evaluating the intrinsic potential and viability of a project, lenders often default to the easier path of securing loans against tangible assets, thereby sidelining promising ventures that may lack substantial collateral but possess strong growth prospects. This approach not only stifles entrepreneurial spirit but also limits the flow of capital to innovative sectors crucial for long-term economic development. The NRB Executive Director underscored the urgent need to empower banks to adopt more sophisticated, risk-assessment-based lending models. Such a shift would enable financial institutions to move beyond traditional collateral requirements and focus on the inherent strengths and potential returns of projects, fostering a more dynamic and responsive credit market. However, the current environment presents a dual challenge for banks: they are struggling both to expand their loan portfolios and to recover existing debts, creating a cautious lending climate. One of the primary reasons for this reluctance, particularly in the realm of small loans, is the escalating difficulty in loan recovery. Paudel pointed to several systemic issues contributing to this problem. A significant hurdle is the lack of adequate cooperation from various local government bodies, particularly concerning processes like the certification of land boundaries (char killa) and the issuance of necessary notices. These bureaucratic bottlenecks complicate the legal and administrative procedures for loan recovery, making it a cumbersome and often protracted process for financial institutions. Adding to this complexity is a concerning societal narrative that has begun to take root: the perception that small loans do not necessarily need to be repaid. Paudel lamented that this dangerous notion is being actively promoted and even covered up by various groups, some operating under political guises. Such activities not only undermine the integrity of the credit system but also foster a culture of non-compliance, posing a severe threat to the stability and sustainability of the banking sector. The fear of non-repayment makes banks highly risk-averse, particularly towards smaller borrowers who are often the backbone of local economies and vital for job creation. Despite these challenges, Paudel maintained a cautiously optimistic stance regarding the overall financial health of Nepal's banking sector, asserting that it remains comparatively strong. This resilience, however, should not overshadow the pressing need for structural reforms in lending practices to unlock the full economic potential of the nation. In a related development aimed at broader financial sector strengthening, the government has unveiled an ambitious 21-point action plan designed to fortify and revitalize Nepal's capital market. This comprehensive strategy encompasses a wide array of reforms, including improvements in the primary market, the development of new financial instruments, institutional enhancements for securities brokerage businesses, increased participation from institutional investors, and a thorough review of tax arrangements pertaining to share transactions. This multi-pronged approach signals a concerted effort to create a more robust and attractive investment environment, which, if successful, could complement efforts to reform the lending sector by providing alternative avenues for capital formation and investment. The synergy between a reformed banking sector and a vibrant capital market is crucial for Nepal's journey towards sustainable economic growth and prosperity.
NEPSE Dividend Season: Reliance Spinning Mills Declares Record 30% Cash Dividend as Payouts Show Mixed Trends Across Sectors
The Nepal Stock Exchange (NEPSE) is currently abuzz with dividend announcements as listed companies and mutual funds unveil their profit distribution plans for the fiscal year 2082/83. Investors are keenly observing these declarations, which offer crucial insights into the financial health and future prospects of various entities. While some companies have delighted shareholders with enhanced payouts, others have opted for more conservative distributions or even reduced their dividend rates compared to the previous year, painting a mixed picture of the market's performance. Leading the pack in this dividend season is Reliance Spinning Mills Limited, which has proposed an impressive 30% cash dividend. This marks a significant turnaround for the company, as it had not distributed any dividends in the preceding fiscal year 2081/82. The substantial 30% cash payout positions Reliance Spinning Mills as one of the most generous dividend declarers among the companies that have announced their proposals so far, signaling robust performance and a strong commitment to shareholder returns. However, the trend is far from uniform across the market. The banking sector, a cornerstone of NEPSE, showcases varied outcomes. Among commercial banks, Everest Bank has proposed a 15% dividend (5% bonus and 10% cash), a decrease from its 20% payout last year. In contrast, Global IME Bank has increased its dividend to 10% (6% bonus and 4% cash) from 8% previously. Sanima Bank also saw an increase, proposing 10% cash dividend compared to 7.37% last year. Nabil Bank has announced a 15.8% dividend (5% bonus and 10.8% cash), up from 12.5%. On the other hand, Machhapuchchhre Bank's 6% proposal is lower than its previous 8%, and Citizens Bank International's 4% is down from 5.26%. Kumari Bank, which did not offer a dividend last year, has proposed 2.10% this year. Siddhartha Bank stands out with a significant increase, proposing 20% (10% bonus and 10% cash) against 10.53% last year, reflecting strong growth. Development banks also exhibit a mixed bag. Kamana Sewa Development Bank's 15% dividend is a slight dip from 15.79% last year. Shangrila Development Bank has proposed 10.52% (4% bonus and 6.52% cash), a marginal increase from 10.36%. Garima Bikas Bank has nearly doubled its payout to 20% from 10.53%, while Shine Resunga Development Bank's 16% is higher than its previous 13%. In the finance sector, ICFC Finance has proposed 10.52% cash, a decrease from 15.79% last year. The hydropower sector, a growing segment of NEPSE, also presents diverse dividend scenarios. Mandu Hydropower has increased its dividend to 12% from 10%. Super Madi Hydropower has announced a substantial 15.789% (15% bonus and 0.789% cash), a significant jump from 5.26%. United Mardi & RB Hydropower and Arun Valley Hydropower have maintained their 5.26% dividend rates. Notably, Snow River Nepal and Vikas Hydropower, which did not distribute dividends last year, have proposed 10.526% each this year, indicating new projects coming online or improved operational efficiency. Beyond the financial and energy sectors, manufacturing companies like Nepal Lubricants Oil have proposed 21.52% (15% bonus and 6.52% cash), maintaining a similar level to last year's 21.5%. Sarbottam Paints has announced 10.52%. In microfinance, Gurans Laghubitta's 10% (9.5% bonus and 0.5% cash) is lower than its previous 15%. Conversely, the hotel and tourism sector's Kalinchowk Darshan Limited has increased its dividend to 8.94% (8.5% bonus and 0.44% cash) from 5.26%. Mutual funds are also actively declaring returns for their unit holders. Himalayan 80-20 leads this category with a 15% dividend, the highest among mutual funds so far. While some funds like Prabhu Select Fund and Global IME Balanced Fund-1 have maintained their previous year's payouts (12% each), many have seen a reduction. For instance, Kumari Equity Fund's 10% is down from 11.5%, and Siddhartha Investment Growth Scheme-2's 8% is significantly lower than its previous 20%. However, some funds, such as Nabil Balanced Fund-2 and Nabil Balanced Fund-3, have substantially increased their dividends to 13% each from 3.5% and 2.5% respectively. RBB Mutual Fund-1 has also seen a remarkable increase to 20% from 2.75%. This dividend season underscores the varied performance across NEPSE's diverse sectors. While a high dividend yield can be attractive, savvy investors understand that it is just one metric among many. A holistic evaluation requires considering factors such as a company's profitability, earnings per share (EPS), net worth, cash flow, share price stability, and the consistency of past dividend distributions. For mutual funds, investors should also scrutinize the Net Asset Value (NAV), investment structure, expense ratio, and the fund's historical performance to make informed decisions. The current trend suggests a dynamic market where careful analysis is paramount for navigating investment opportunities.
Birgunj Customs Office Collects NPR 23.46 Billion in Bhadra, Nearing Monthly Target
The Birgunj Customs Office, a pivotal gateway for Nepal's international trade, has reported a robust revenue collection of NPR 23.46 billion (approximately USD 176 million) during the month of Bhadra (mid-August to mid-September) of the current fiscal year 2083/84. This impressive figure represents 99.75% of its ambitious monthly target, signaling a commendable operational efficiency and potentially a positive trend in import activities. According to Purna Prasad Lamsal, spokesperson for the Chief Customs Office, this significant collection brings the total for the current fiscal year to 14.52% of the annual revenue target. While the fiscal year is still in its nascent stages, achieving nearly the entire monthly target sets a strong precedent for the remaining months and provides a crucial boost to the national treasury. This early performance is vital for the government's fiscal planning and its ability to fund various public services and development projects. Birgunj Customs Office holds immense strategic importance for Nepal's economy. Situated at the primary entry point for goods from India and other third countries, it acts as the lifeblood of the nation's supply chain. A significant portion of Nepal's total imports, ranging from essential commodities to industrial raw materials, passes through this customs point. Consequently, its performance is often considered a key indicator of the country's overall economic health, trade volume, and consumer demand. The customs office identified several categories as major contributors to this revenue, based on both value and customs duty. These include essential consumer goods like biscuits, pulses, textiles and clothing, as well as critical industrial raw materials and food grains. This composition offers valuable insights into Nepal's consumption patterns and industrial needs. The sustained import of industrial raw materials suggests ongoing manufacturing activities within the country, which is a positive sign for domestic industries striving for growth and production. Similarly, the consistent import of essential food items and consumer goods reflects resilient consumer demand despite prevailing economic conditions. The substantial revenue collection from Birgunj Customs has far-reaching implications for the national economy. Customs duties are a primary and indispensable source of government revenue, essential for funding public services, infrastructure development, and various social welfare programs. A consistent and strong performance by key customs offices like Birgunj directly contributes to the government's fiscal stability and its capacity to invest in national development projects. Moreover, healthy import figures, particularly for industrial raw materials, can indicate a resilient domestic manufacturing sector and overall economic activity, even as the nation navigates global economic uncertainties and domestic challenges. While the current figures are encouraging, customs offices in Nepal continually face challenges such as managing trade facilitation, combating smuggling, ensuring accurate valuation, and upgrading infrastructure to meet modern trade demands. The ability to meet and exceed targets, as demonstrated by Birgunj, underscores effective administration and potentially improved compliance from traders. Looking ahead, sustained revenue collection will depend on various factors including global commodity prices, domestic demand, government trade policies, and the overall economic environment. This strong start provides a hopeful outlook for the government's revenue targets for the fiscal year, reinforcing the critical role of efficient customs administration in national prosperity and economic stability.
Upper Hewakhola Hydropower: Promoter Sudip Ghimire Announces Intent to Sell Significant Shareholding
Kathmandu, Nepal – Upper Hewakhola Hydropower Company Limited (UHEWA) has recently informed the Nepal Stock Exchange (NEPSE) about a significant upcoming transaction involving one of its major promoter shareholders. Sudip Ghimire, identified as a key promoter, has expressed his intention to divest a substantial block of 452,533 shares in the company over the next three months. This disclosure, made to NEPSE on Bhadra 15, 2083 (August 31, 2026), follows a formal application received from Mr. Ghimire earlier that day. The announcement holds considerable weight for investors, as promoter share sales often draw close scrutiny. While such transactions are a normal part of market dynamics, they can sometimes signal various underlying factors, from personal liquidity needs and portfolio diversification strategies to, in some cases, a potential shift in the company's ownership structure or strategic direction. For a company like Upper Hewakhola Hydropower, operating in Nepal's burgeoning energy sector, the movement of significant shareholdings by its founders or key promoters is always a point of interest. The regulatory framework governing such sales in Nepal is designed to ensure transparency and protect investor interests. According to the Securities Act, 2063, and directives issued by the Securities Board of Nepal (SEBON), promoter shareholders who intend to sell 5% or more of their total shareholding in a listed company are mandated to provide a written notification to the concerned company at least 15 days prior to the proposed sale. This requirement ensures that the market is adequately informed, preventing information asymmetry and promoting fair trading practices. UHEWA's prompt disclosure to NEPSE, in response to Mr. Ghimire's application, underscores its commitment to regulatory compliance and market transparency. For the broader investor community, understanding the implications of such a sale is crucial. While the immediate reaction might be one of caution, it is important to consider the context. A promoter selling shares does not automatically imply a negative outlook for the company. It could simply be a strategic financial decision by the individual shareholder, perhaps for personal investment diversification or to meet other financial obligations. Investors are advised to look beyond the headline and delve into the company's fundamentals, recent performance, future projects, and the overall health of the hydropower sector. Analyzing UHEWA's financial reports, project development status, and market position will provide a more comprehensive picture. The hydropower sector in Nepal is dynamic, driven by the nation's vast water resources and growing energy demand. Companies like Upper Hewakhola Hydropower play a vital role in this development. Therefore, any significant shareholder activity within such companies warrants careful consideration. The market will be keenly observing the execution of this sale over the coming three months, and its impact on UHEWA's share price and investor sentiment will be a key indicator. This event serves as a reminder for investors to remain vigilant, conduct thorough due diligence, and base their investment decisions on a holistic understanding of market signals and company-specific information.
Separate Routes, Timings Set for Vehicles Traveling Between Hetauda and Kathmandu After Bhotekoshi Flood
Authorities have introduced separate routes and travel schedules for vehicles operating between Hetauda and Kathmandu following the flooding in the Bhotekoshi River, which has affected road conditions and transportation movement along key routes. According to the Nepal Police, traffic arrangements have been revised based on vehicle size and capacity to facilitate safer and more orderly movement between the two cities amid the disaster-related disruptions. Under the new arrangement, cargo vehicles and large passenger buses with up to 10 wheels traveling from Hetauda to Kathmandu will be required to use the Tribhuvan Rajpath. These vehicles will use the Kanti Rajpath while returning from Kathmandu to Hetauda. The route arrangement has been introduced to manage traffic flow and reduce pressure on vulnerable sections of the road network. Passenger vehicles traveling toward Hetauda via the Kanti Rajpath must cross the Thingan Area Police Office checkpoint in Makwanpur by 6 p.m. For small passenger vehicles with a capacity of fewer than 14 seats, authorities have designated alternative routes. Vehicles traveling toward Hetauda will use the Pharping–Fakhel–Kulekhani–Bhimphedi route. Similarly, vehicles traveling toward Kathmandu will use the Bhimphedi–Kulekhani–Sisneri–Dakshinkali road. The separate routing system is aimed at easing congestion and improving traffic safety on roads affected by the recent disaster. Police have also warned vehicles carrying fuel and other heavy cargo not to cross the Bailey bridge near Trikhandi in Makwanpur. The bridge currently has limited load-bearing capacity. Such vehicles have therefore been instructed to use the diversion constructed alongside the bridge to prevent additional structural stress and reduce the risk of accidents. Given the ongoing disaster-related situation, Nepal Police has urged the public to travel only when necessary and to exercise patience and discipline while operating vehicles on highways. Drivers have been instructed not to overtake, to maintain orderly movement according to their designated turn, and to strictly follow instructions issued by security personnel and traffic police deployed for traffic management. Authorities have emphasized that cooperation from drivers and passengers will be essential for maintaining safe and efficient transportation while road conditions continue to be affected by the aftermath of the Bhotekoshi flood.
Beyond the Deluge: Analyzing NEPSE's Reaction to Rasuwa Floods and Future Reconstruction Opportunities
The recent devastating floods in the Bhotekoshi-Trishuli corridor of Rasuwa have not only caused extensive damage to physical infrastructure but have also significantly impacted public confidence and the nation's economic backbone. In the immediate aftermath, the Nepal Stock Exchange (NEPSE) witnessed a sharp decline, plummeting over 80 points within three trading days and breaching the 2513-point mark. This level had served as a robust support since November 2081, making the current dip a cause for concern among investors. The market's swift reaction underscores the profound psychological impact of such a large-scale natural disaster, triggering widespread panic selling. The hydropower sector, a significant component of NEPSE, bore the brunt of the floods. Projects like Rasuwagadhi, Chilime, Sanjen, Mailung Khola, and Upper Trishuli Hydropower, typically considered strong investment prospects, suffered considerable damage. This led to a wave of panic selling in their shares, a natural response given the direct impact. However, the psychological fear extended beyond these directly affected companies, with even hydropower firms located in unaffected areas experiencing share price declines. This phenomenon highlights the pervasive nature of investor sentiment during times of crisis, where fear can override fundamental analysis. While the immediate reaction has been one of alarm, leading many investors to fear for the existential viability of these companies, it is crucial to distinguish between emotional responses and underlying realities. A significant portion of the production halts in these projects is not solely due to structural damage but also to disruptions in critical transmission lines. Furthermore, the resilience of Nepal's infrastructure and the mechanisms in place for recovery offer a more nuanced perspective. Historically, the Nepali stock market has demonstrated remarkable resilience in the face of adversity. Past crises, such as the challenges faced by Mandu Hydro and Upper Hewa Khola, have shown that companies can not only recover from significant damage but also emerge stronger. A crucial factor in this recovery is the role of insurance and international reinsurance companies, which typically cover a substantial portion of the damage, thereby mitigating the financial burden on the affected companies. Moreover, efficient management plays a pivotal role in navigating such crises. For strategically important projects like Rasuwagadhi and Chilime, which have investments from the Nepal Electricity Authority (NEA), direct government interest and support are expected to expedite reconstruction efforts, instilling confidence in their swift revival. NEPSE has weathered far greater storms in its history, including periods of intense political upheaval, the devastating earthquake of 2072, and the global COVID-19 pandemic. In each instance, the market initially experienced a downturn but subsequently recovered, often reaching new historical highs. Contrary to initial predictions, the post-2072 earthquake period ushered in a new bull run, fueled by massive reconstruction efforts, capital increases in banks, and enhanced market liquidity. The financial sector, for instance, saw a remarkable growth of 30 to 40 percent during that period. Investor Gopal Swami suggests that the current post-flood reconstruction drive could similarly inject new enthusiasm into the market. The economic implications of the reconstruction efforts are substantial. Finance Minister Dr. Swarnim Wagle recently estimated that post-flood reconstruction could require approximately $5 billion (NPR 760 billion). This significant capital injection is not merely an expenditure but a massive investment that is expected to invigorate the national economy. When such substantial funds flow from the government and donor agencies into reconstruction, it creates a ripple effect, stimulating demand across various sectors. Indeed, in the trading days following the floods, companies associated with reconstruction have already seen an uptick in their share values. The anticipated high demand for essential construction materials such as cement, rebar, and other building supplies presents a significant opportunity for listed manufacturing and construction sector companies. As Swami aptly puts it, "Investors always look for future potential from the market. While this flood damaged some companies, it opened a huge door of opportunity for the overall construction and infrastructure sector." This perspective encourages a forward-looking approach, focusing on the long-term growth potential rather than short-term setbacks. In conclusion, while the recent floods have undoubtedly caused immediate market volatility and investor apprehension, the decline is likely temporary. As reconstruction efforts gain momentum and economic activities rebound, the market is expected to regain its footing. During times of crisis, patience and informed decision-making are paramount. Today's panic selling, driven by immediate fear, could very well translate into missed opportunities and regret for investors who fail to recognize the market's historical resilience and the potential for future growth spurred by reconstruction.
Prabhu Select Fund and Prabhu Smart Fund Announce 12% Cash Dividend, Set Book Closure Date
Prabhu Mutual Fund, a prominent player in Nepal's capital market, has announced a significant dividend distribution for its two popular schemes: Prabhu Select Fund (PSF) and Prabhu Smart Fund (PRSF). The scheme manager has declared a 12% cash dividend, inclusive of applicable taxes, for the unit holders of both funds. This move is poised to bring positive news to investors seeking returns from their mutual fund investments, underscoring the funds' commitment to delivering value. To facilitate the distribution of this dividend, the scheme manager has set the book closure date for Bhadra 25, 2080, which corresponds to September 11, 2023. This crucial date determines eligibility for the dividend payout. Specifically, only unit holders who have transacted and are registered in NEPSE's records by Bhadra 24, 2080 (September 10, 2023), will be eligible to receive the announced dividend. Investors are strongly advised to ensure their holdings are settled and recorded by this cut-off date to qualify for the upcoming payout. The decision to distribute a 12% cash dividend was formalized during a meeting of the scheme manager's board of directors, which took place on Bhadra 5, 2080 (August 22, 2023). This announcement reflects the robust performance of both funds over the past fiscal year and the management's strategic commitment to rewarding its unit holders. Such declarations are vital for maintaining investor confidence and demonstrating the financial health and strategic direction of the mutual fund schemes in a competitive market environment. For investors, dividends from mutual funds represent a direct return on their investment, typically derived from the profits generated by the fund's underlying portfolio of stocks, bonds, and other securities. A cash dividend, in particular, provides immediate liquidity, allowing investors the flexibility to either reinvest the proceeds back into the fund, potentially compounding their returns, or utilize them for other personal financial needs. In the context of the Nepali capital market, mutual funds play an increasingly vital role in mobilizing small savings from individual investors and channeling them into diversified portfolios, thereby contributing significantly to overall market stability and growth. Prabhu Capital Limited, as the scheme manager for Prabhu Select Fund and Prabhu Smart Fund, bears the critical responsibility for the strategic management and operational oversight of these funds. Their decision to issue a substantial 12% cash dividend underscores their proactive approach to fund management and their demonstrated ability to generate consistent returns amidst varying market conditions. This also highlights the importance of professional fund management in navigating market volatilities, identifying lucrative investment opportunities, and optimizing portfolio performance for the ultimate benefit of unit holders. The announcement of dividends by well-regarded mutual funds like those managed by Prabhu Capital often has a positive ripple effect on broader investor sentiment. It can signal a favorable outlook for the overall market, especially if the funds have performed commendably in what might have been a challenging economic environment. For existing unit holders, it serves as a tangible reward for their investment and trust, while for potential investors, it can act as an attractive indicator of the fund's potential for stability and consistent returns. In Nepal's evolving financial landscape, such proactive corporate actions by mutual funds contribute significantly to fostering a culture of informed and confident investment. All mutual funds in Nepal operate under the strict regulatory framework established by the Securities Board of Nepal (SEBON). SEBON's comprehensive guidelines ensure transparency, robust investor protection, and prudent management of fund assets. The dividend distribution process, including the precise setting of book closure dates, adheres meticulously to these regulatory standards, providing an additional layer of assurance and credibility for investors. In conclusion, the declaration of a 12% cash dividend by Prabhu Select Fund and Prabhu Smart Fund is a welcome and significant development for their unit holders. It reinforces the role of mutual funds as a viable and attractive investment avenue for wealth creation and income generation in Nepal. Investors are strongly encouraged to take careful note of the book closure date to ensure their eligibility for this upcoming payout, reflecting the ongoing commitment of Prabhu Mutual Fund to delivering value to its dedicated investors.
SEBON Orders Special Monitoring of Listed Companies Hit by Recent Floods
The Securities Board of Nepal (SEBON) has directed concerned authorities to step up monitoring of listed companies that may have been affected by the recent devastating floods and natural disasters across Nepal, particularly along the Trishuli and Bhotekoshi river systems. The regulator said the disasters have caused damage to several hydropower projects, transmission structures and other physical infrastructure that are either under construction or already in operation. Given the potential impact on listed companies, SEBON has emphasized the need for heightened vigilance to ensure transparent securities trading, adequate disclosure and protection of investors’ interests. The directive has been issued under the authority granted to the Board by Section 84(1) of the Securities Act. Under the directive, concerned authorities have been instructed to immediately prepare and submit to SEBON a detailed list of listed companies that may have been directly or indirectly affected by the natural disasters. The measure is intended to help the regulator assess the potential financial and operational impact of the floods and other disasters on companies listed in Nepal’s capital market. SEBON has also directed that information concerning the impact of the disasters on affected companies be obtained and publicly disclosed through the companies’ official communication channels and the concerned information system. The disclosures are required to cover a broad range of operational, financial and infrastructure-related information, including: 1. Name and location of the affected project2. Date and nature of the natural disaster3. Preliminary assessment of physical damage to the project4. Status of electricity generation and whether production has been halted or disrupted5. Estimated reduction in affected generation capacity6. Details of casualties or losses involving human resources7. Impact on transmission and distribution infrastructure8. Whether the affected assets and projects are insured9. Whether an insurance claim has been filed10. Preliminary financial impact on the company11. Estimated timeline for resumption of project operations12. Potential impact on bank loans and the company’s debt-servicing capacity13. Immediate measures taken by company management The disclosure requirement is aimed at ensuring that investors receive timely and material information about the condition of companies whose operations may have been disrupted by the disasters. SEBON has instructed that special surveillance be maintained over the securities trading of affected companies. Regulators are required to continuously monitor trading activities for signs of unusual or potentially market-distorting behavior. Particular attention will be given to:i. Unusual changes in share pricesii. Abnormal trading volumesiii. Unusual buying or selling ordersiv. Abnormal trading before the release of material informationv. Any other activities that could undermine market fairness and transparency The directive comes amid concerns that incomplete or delayed information regarding disaster-related damage could create uncertainty in the market or provide opportunities for trading based on undisclosed information. SEBON has further directed the development of a clear procedure for information dissemination and the suspension and resumption of securities trading in cases involving natural disasters, accidents, fires, earthquakes and other extraordinary events. The procedure is expected to take into account both the short-term and long-term effects such events can have on listed companies and their securities. The move is intended to strengthen the capital market’s preparedness for major disruptions and establish a more systematic approach to handling market-sensitive information during emergencies. Concerned authorities have also been instructed to provide SEBON with regular updates on progress made in implementing the directive, along with details of any unusual activities observed in the securities market. Through the directive, the securities regulator has sought to strengthen market oversight while ensuring that investors receive reliable and timely information about companies affected by the recent disasters. The directive is particularly significant for the hydropower sector, where a number of listed companies operate projects and infrastructure along river corridors that have been impacted by the recent floods.
Lock-in Period of 1,11,000 Units of Shikhar Power Development Limited Shares Held by Mutual Funds to Expire on 2nd Ashwin
Shikhar Power Development Limited (SIPD) has informed that the lock-in period of 1,11,000 ordinary shares allocated to mutual funds will end on 2nd Ashwin, 2083. The company has an issued capital of Rs. 98 crores. Out of the total 22,20,000 units, 2,81,250 (i.e., 5% of 22,20,000 ) were set aside for mutual funds, subject to a mandatory six-month lock-in period. Upon completion of the lock-in period, these shares will be free to trade from the specified date. This notice is intended to inform all investors and other concerned stakeholders. Notice:
Former Prime Minister Oli Slams Government's 'Ineffective' Rasuwa Flood Response, Citing Lack of Coordination and Private Sector Restrictions
Kathmandu, Nepal – Former Prime Minister and Chairman of the CPN-UML, KP Sharma Oli, has launched a scathing critique against the current government's handling of the devastating floods in Rasuwa, accusing it of failing to conduct effective search, rescue, and relief operations. Speaking at the party's central office in Chyasal on Monday, where he received a NPR 1 million cheque from the CPN-UML Kathmandu Province Committee for flood victims, Oli expressed profound dissatisfaction with the state's disaster response mechanisms. Oli's remarks underscored a growing public concern over the government's perceived sluggishness and lack of strategic coordination in the face of the recent natural calamity. He specifically targeted ministers and members of parliament from the Rastriya Swatantra Party (RSP), alleging that some officials were merely "scolding citizens and returning," while others were issuing "baseless instructions" or, worse, "creating additional problems on top of existing ones." This direct criticism highlights a deepening political rift over disaster management, a critical area impacting public trust and national stability. A central point of Oli's grievance was the perceived absence of the central government during this crisis. "The situation has come to a point where we have to search for the central government," Oli stated, questioning its visibility and proactive engagement. He further lamented that while the government is occasionally "seen flying in helicopters," its efforts appear superficial, focusing only on easily accessible areas like rescuing individuals from rooftops after floodwaters recede. This observation suggests a disconnect between high-level visibility and tangible, on-the-ground impact. Adding to his criticism, Oli expressed strong disapproval of the government's alleged prohibition on the use of private sector helicopters for rescue operations. He argued that Nepal possesses trained personnel and well-equipped private helicopters eager to assist in rescue efforts. "If private helicopters were allowed to operate, and those trained in rescue were permitted to work, they could have accomplished much more," Oli asserted, implying that bureaucratic hurdles are actively hindering crucial life-saving missions. He emphasized that complex rescue scenarios, such as those in tunnels or other high-risk zones, cannot be effectively managed solely by helicopter, necessitating a broader, more collaborative approach involving all available resources. Furthermore, Oli highlighted the plight of affected families, stating that the government has even prevented locals from searching for their missing relatives. This restriction, if true, represents a significant barrier to community-led recovery efforts and could exacerbate the emotional toll on victims. In contrast, Oli claimed that CPN-UML leaders, cadres, and local and provincial representatives are actively engaged on the ground, working tirelessly to provide support and relief to those affected. This statement positions the CPN-UML as a more responsive and empathetic force in contrast to the government's perceived shortcomings. The former Prime Minister's strong condemnation brings to light critical issues in Nepal's disaster preparedness and response framework. It underscores the need for transparent, efficient, and inclusive strategies that leverage both state and private sector capabilities. For investors, such political discourse, especially concerning governance and national stability during crises, can be a barometer of the country's operational environment and its capacity to manage unforeseen challenges, potentially influencing long-term economic outlooks and investment confidence. The effectiveness of disaster response is not just a humanitarian issue but also a significant indicator of a government's administrative capacity and its ability to protect national assets and human capital, which are foundational to economic resilience.
Strategic One-Way Traffic Implemented on Hetauda-Kathmandu Corridor to Ease Congestion
The Hetauda-Kathmandu road corridor, a critical artery connecting the industrial hub of Hetauda with the nation's capital, Kathmandu, has undergone a significant operational change. Effective immediately, a strategic one-way traffic system has been implemented to manage the escalating vehicular congestion. This proactive measure by local authorities aims to streamline traffic flow and enhance safety for commuters traversing this vital route. The decision to introduce the one-way system stems from a recent surge in traffic volume, primarily triggered by the obstruction of the Prithvi Highway at Krishnabhir in Dhading. This blockage has necessitated the rerouting of a substantial portion of vehicles, including both passenger and cargo transport, onto alternative pathways, with the Hetauda-Kathmandu route bearing a significant brunt of the diverted traffic. The resultant increase in vehicles had led to frequent traffic jams, extended travel times, and heightened risks on the existing two-way sections of the road. Under the new directives, small passenger vehicles with a capacity of less than 14 seats will now follow distinct routes depending on their direction of travel. Vehicles heading towards Kathmandu from Hetauda will utilize the Bhimphedi-Kulekhani-Sisneri-Dakshinkali corridor. Conversely, those journeying from Kathmandu to Hetauda will be directed along the Pharping-Fakhel-Kulekhani-Bhimphedi route. This segregation of smaller vehicles is expected to significantly reduce bottlenecks at critical junctures and ensure a more consistent flow of traffic. For larger vehicles, including cargo trucks and buses exceeding 14-seat capacity, the system also introduces specific guidelines. According to Mr. Santosh Subedi, Administrative Officer at the Makwanpur District Administration Office, these larger vehicles will use the historic Tribhuvan Highway when traveling towards Kathmandu. For their return journey to Hetauda, they will be mandated to take the Kanti Highway. This strategic allocation of routes for heavy and large passenger vehicles is crucial for maintaining the integrity of the road infrastructure and preventing excessive strain on narrower or less robust sections of the alternative routes. The implementation of this one-way system is anticipated to bring several tangible benefits. Foremost among these is the expected alleviation of persistent traffic congestion, which has been a growing concern for commuters and logistics operators alike. By eliminating opposing traffic flows on certain sections, the new arrangement is poised to reduce travel times, improve road safety, and enhance the overall efficiency of transportation along this corridor. For businesses reliant on the timely movement of goods between Hetauda's industrial zones and Kathmandu's consumer markets, this could translate into reduced operational costs and improved supply chain reliability. From an economic perspective, the smooth functioning of key transportation arteries like the Hetauda-Kathmandu route is paramount for national development. Hetauda, a significant industrial hub, relies heavily on efficient connectivity to the capital for raw material imports and finished goods exports. Disruptions or inefficiencies in this corridor can have ripple effects across various sectors, impacting manufacturing, trade, and even tourism. The proactive steps taken by the local administration underscore a commitment to maintaining economic fluidity and minimizing the adverse impacts of unforeseen infrastructure challenges. While initial adjustments and potential minor detours might pose temporary inconveniences for some, the long-term benefits of a more organized and efficient traffic management system are expected to outweigh these challenges. This move also highlights the broader need for robust and resilient infrastructure planning in Nepal, especially given the country's challenging topography and susceptibility to natural events that can disrupt vital transport links. The successful implementation and adaptation to this new system will serve as a testament to effective local governance and a crucial step towards ensuring uninterrupted economic activity and public convenience.
Nepal Chamber of Commerce Mobilizes Extensive Relief for Bhotekoshi Flood Victims, Reinforcing National Resilience
Kathmandu, Nepal – In a significant demonstration of corporate social responsibility and national solidarity, the Nepal Chamber of Commerce (NCC) has spearheaded a comprehensive relief operation, delivering vital supplies to communities devastated by the recent Bhotekoshi floods. This initiative underscores the critical role of apex business bodies in supporting national disaster response and rehabilitation efforts, particularly in the face of escalating climate-related challenges. A high-level delegation from the Chamber, led by Senior Vice President and Chair of the Disaster Management Council, Mr. Deepak Kumar Malhotra, officially handed over the collected relief materials to the District Administration Office, Kathmandu, at the Nepal Police Disaster Response Training Centre in Samakhusi on Sunday. The collaborative spirit of the business community was further highlighted by the inclusion of relief items meticulously gathered by the Youth Chamber, demonstrating a multi-generational commitment to societal welfare. The Bhotekoshi floods have inflicted widespread damage across several districts, including Rasuwa, Nuwakot, and Dhading, severely impacting livelihoods, infrastructure, and the local economy. In response to this humanitarian crisis, the NCC's relief consignment was carefully curated to address immediate needs. It comprised essential food items such as beaten rice (chiura) and biscuits, alongside crucial hygiene and health supplies including sanitary pads, toothpaste, toothbrushes, gloves, and masks. Additionally, the package included T-shirts, pulses, drinking water, noodles, soap, diapers, blankets, medicines, rice, and clothing, ensuring a holistic approach to supporting affected families. This extensive distribution was carried out in close coordination with Leo District Council 325 G, Nepal, amplifying the reach and effectiveness of the aid. The Nepal Chamber of Commerce's engagement in disaster relief is not a new endeavor but rather a consistent commitment. Following the initial devastation caused by the Bhotekoshi floods, the Chamber has been actively involved in providing emergency support and long-term assistance. Previous contributions include the provision of 17 advanced drones to the Nepal Police, significantly enhancing their search, rescue, and surveillance capabilities in challenging terrains. Furthermore, Bidur Municipality received two drones and 125 power banks, crucial for maintaining communication and operational efficiency in areas prone to power outages. Financial assistance has also been extended to district-level Chambers in the affected regions, empowering local business communities to lead their own recovery initiatives. This sustained involvement reflects the NCC's understanding that a resilient economy is inextricably linked to a resilient society. By actively participating in disaster management, the Chamber not only fulfills its social obligations but also contributes to creating a more stable environment for businesses to operate and thrive. Such public-private partnerships are vital for effective disaster preparedness, response, and long-term recovery, ensuring that national resources are optimally utilized to mitigate the impact of natural calamities. Looking ahead, the Nepal Chamber of Commerce has affirmed its unwavering commitment to these efforts. The Chamber announced its intention to continue collecting and distributing essential food, clothing, and health supplies, working hand-in-hand with the government on ongoing relief and rehabilitation programs. This proactive stance by a leading business organization serves as a powerful example of how the private sector can, and must, play a pivotal role in fostering national resilience and supporting communities in times of crisis, ultimately contributing to the broader socio-economic stability of Nepal.
Unveiling Value: A Comprehensive Analysis of NEPSE's Low Float Development Banks
Nepal's financial landscape is significantly shaped by its Class B development banks, with 17 such institutions currently listed and actively traded on the Nepal Stock Exchange (NEPSE). For discerning investors, a deep dive into the fundamental metrics of these banks is crucial for identifying potential opportunities and managing risks. This analysis focuses on the top 10 least floated development banks, examining four pivotal parameters: public float, Price-to-Earnings (P/E) ratio, Non-Performing Loans (NPL), and Earnings Per Share (EPS), to provide a holistic view of their performance and investment attractiveness. **Understanding Public Float and Its Implications** Public float refers to the percentage of a company's shares that are available for trading by the general public, excluding shares held by promoters, insiders, or restricted stock. A lower public float typically means fewer shares are available in the market, which can lead to higher price volatility and potentially significant price movements on relatively small trading volumes. For investors, low float stocks can offer substantial gains if demand surges, but they also carry increased liquidity risk. In the development bank sector, Narayani Development Bank Limited (NABBC) stands out as the least floated, with only 1,574,806 public shares, representing 30.00% of its total shares (70.00% promoter share). It is closely followed by Corporate Development Bank Limited (CORBL) with 1,575,000 public shares (70.00% promoter share) and Salapa Bikas Bank Limited (SABBL) with 1,723,880 public shares (67.00% promoter share). Investors considering these banks should be mindful of the potential for reduced liquidity and the impact this can have on entry and exit points. **Price-to-Earnings (P/E) Ratio: A Valuation Perspective** The P/E ratio is a fundamental valuation metric that indicates how much investors are willing to pay for each rupee of a company's earnings. A lower P/E ratio often suggests that a stock might be undervalued or that the market has lower growth expectations, making it potentially attractive to value investors. Conversely, a higher P/E can indicate high growth potential or that the stock is overvalued. Among the least floated development banks, Lumbini Bikas Bank (LBBL) boasts the lowest P/E ratio at 20.14, positioning it as the most attractively valued relative to its earnings. Kamana Sewa Bikas Bank Limited (KSBBL) follows with a P/E of 21.22, and Excel Development Bank Limited (EDBL) ranks third with a P/E ratio of 22.86. It's important to note that these P/E ratios are calculated using the Last Traded Price (LTP) as of August 27, 2026, and EPS from Q4 2082/83, providing a snapshot of their valuation at that specific time. **Non-Performing Loans (NPL): Gauging Asset Quality** Non-Performing Loans (NPLs) are a critical indicator of a bank's asset quality and the health of its loan portfolio. A lower NPL ratio signifies better credit management, reduced risk of loan defaults, and a stronger financial position. High NPLs can erode a bank's profitability and capital, impacting investor confidence and future growth prospects. Miteri Development Bank Limited (MDB) leads the sector with an exceptionally low NPL of 0.26%, demonstrating superior asset quality. Salapa Bikas Bank Limited (SABBL) also shows strong performance with an NPL of 0.79%, while Green Development Bank Limited (GRDBL) comes in third with an NPL ratio of 3.22%. These figures highlight the varying degrees of risk management and credit quality across the sector, which is a crucial factor for long-term investment stability. **Earnings Per Share (EPS): A Measure of Profitability** Earnings Per Share (EPS) is a direct measure of a company's profitability, indicating the portion of a company's profit allocated to each outstanding share of common stock. A higher EPS generally reflects stronger financial performance and can be a significant driver of stock price appreciation. Consistent growth in EPS is often more valued by investors than a single high figure. In terms of profitability, Excel Development Bank Limited (EDBL) leads the pack with the highest EPS of 24.76. Lumbini Bikas Bank (LBBL) follows closely with an EPS of 23.48, and Kamana Sewa Bikas Bank Limited (KSBBL) secures the third position with an EPS of 22.34. These figures underscore the ability of these banks to generate profits for their shareholders. **Conclusion: A Holistic Investment Approach** Analyzing these key metrics provides valuable insights into the performance and potential of NEPSE's low float development banks. While Narayani Development Bank, Corporate Development Bank, and Salapa Bikas Bank lead in terms of low public float, indicating potential for volatility, banks like Lumbini Bikas Bank and Kamana Sewa Bikas Bank offer attractive P/E ratios and strong EPS. Miteri Development Bank and Salapa Bikas Bank demonstrate excellent asset quality with low NPLs. It is crucial for investors to remember that no single metric tells the complete story. A comprehensive investment decision requires a holistic analysis, combining these financial indicators with other factors such as management quality, regulatory environment, growth strategies, and broader macroeconomic conditions. The Nepalese market is dynamic, and continuous monitoring of these parameters is essential for informed investment choices.
Divine Healthcare Taps Muktinath Capital as Issue Manager for Landmark IPO
Divine Healthcare Limited, a prominent pharmaceutical manufacturer in Nepal, has taken a significant step towards its public listing by officially appointing Muktinath Capital Limited as the issue manager for its upcoming Initial Public Offering (IPO). This strategic partnership marks a crucial milestone for Divine Healthcare as it prepares to offer ordinary shares to the general public, aiming to raise capital for ambitious expansion and development initiatives. The formal agreement was cemented during a signing ceremony held at Muktinath Capital's office. The pact was signed by Mr. Yubaraj Shrestha, Chairman of Divine Healthcare, and Mr. Kabindra Bikram Dhwaj Joshi, CEO of Muktinath Capital. This collaboration brings together a growing pharmaceutical entity with a reputable financial institution, setting the stage for a well-managed and successful public issuance. Divine Healthcare plans to issue 20% of its paid-up capital as ordinary shares to the public. This move is expected to not only broaden the company's ownership base but also provide an opportunity for retail and institutional investors to participate in the growth story of a domestic pharmaceutical player. The pharmaceutical sector in Nepal has been experiencing robust growth, driven by increasing healthcare awareness, a rising population, and a growing demand for quality medicines. Companies like Divine Healthcare are at the forefront of meeting these demands, contributing significantly to the nation's healthcare infrastructure. Established in 2017, Divine Healthcare has rapidly carved a niche for itself in the Nepali pharmaceutical landscape. Headquartered in Bharatpur Metropolitan City-16, Chitwan, the company operates a state-of-the-art manufacturing facility. Currently, Divine Healthcare boasts a diverse portfolio, producing and distributing 67 different types of medicines across various therapeutic categories. Its commitment to quality and accessibility is further underscored by an extensive distribution network comprising over 125 distributors spread throughout the country, ensuring its products reach a wide patient base. The capital raised through this IPO is earmarked for several critical strategic initiatives designed to propel Divine Healthcare into its next phase of growth. A significant portion of the funds will be allocated towards expanding production technology, which is vital for enhancing manufacturing capacity and efficiency. Furthermore, the company plans to invest heavily in the development of new medicines, addressing unmet medical needs and diversifying its product offerings. Improvements to existing products will also be a key focus, ensuring that Divine Healthcare continues to deliver high-quality and effective pharmaceutical solutions. Crucially, strengthening research and development (R&D) activities is a core objective, positioning the company to innovate and remain competitive in a dynamic market. Muktinath Capital Limited, as the appointed issue manager, will play a pivotal role in guiding Divine Healthcare through the intricate process of the IPO. Their responsibilities will include preparing the offer document, ensuring compliance with regulatory requirements set by the Securities Board of Nepal (SEBON), managing the application and allotment process, and facilitating the listing of shares on the Nepal Stock Exchange (NEPSE). Given Muktinath Capital's expertise and track record in managing public issues, investors can anticipate a transparent and efficient IPO process. This upcoming IPO by Divine Healthcare is poised to be an attractive proposition for investors looking to tap into Nepal's burgeoning healthcare sector. With a clear vision for expansion, a strong product portfolio, and a commitment to innovation, Divine Healthcare aims to not only enhance its market position but also contribute significantly to the availability of quality healthcare products in Nepal. The public offering represents a chance for investors to become part of a company dedicated to health and growth.
Nepal Life Insurance Celebrates 25 Years of Excellence, Reports Record First Premium Income
Nepal Life Insurance Company Limited (NLIC), a prominent and leading player in Nepal's burgeoning insurance sector, recently concluded its highly anticipated “Leadership Excellence Awards 2026.” This significant event served as a cornerstone celebration of the company's 25th anniversary, held under the evocative and inspiring theme, “Everest Year Clouds and Beyond.” The three-day gala, which commenced on Bhadra 3 at the prestigious Hotel Yak & Yeti in Kathmandu, was not merely an awards ceremony but a powerful testament to NLIC's enduring success, its robust operational framework, and its unwavering commitment to recognizing the dedicated individuals who are the driving force behind its remarkable achievements. The event brought together an impressive cohort of 637 top-performing agents and agency managers from across the nation. These individuals were meticulously selected and lauded for their exceptional business performance throughout the fiscal year 2082/83. Their contributions underscore the critical role that a dedicated, skilled, and high-achieving sales force plays in navigating and excelling within the competitive insurance landscape. The recognition bestowed upon them included prestigious medals, well-deserved certificates, and substantial cash prizes, with the very best performers from across the nation receiving additional, well-earned accolades and rewards. Such strategic initiatives are crucial not only for motivating the sales force and fostering a sense of belonging but also for reinforcing a culture of excellence and loyalty, which directly translates into sustained business growth, enhanced market penetration, and ultimately, market leadership. During the event, Mr. Kamalesh Kumar Agrawal, a distinguished Director at Nepal Life Insurance, shared compelling insights into the company's financial prowess and strategic vision. He proudly announced that NLIC had achieved a remarkable milestone, collecting an unprecedented over Rs. 13 billion in first premium income during FY 2082/83. This figure represents a record performance for the company, unequivocally underscoring its robust market penetration, the effectiveness of its strategic initiatives, and the strong trust it commands among its clientele. Mr. Agrawal attributed this significant achievement to the unwavering efforts and profound trust placed in the company by its extensive network of agents, its dedicated employees, and, most importantly, its vast and loyal customer base. This powerful synergy between internal stakeholders and external trust is a hallmark of successful and sustainable insurance operations. Reflecting on its quarter-century journey, Nepal Life Insurance highlighted several key financial indicators that collectively paint a comprehensive picture of substantial growth, stability, and operational efficiency. The company's life insurance fund has swelled to an impressive Rs. 285 billion, a critical metric for assessing an insurer's long-term solvency, its capacity to meet future obligations, and its overall financial health. Furthermore, its total premium collection has reached an astounding Rs. 362 billion, showcasing consistent revenue generation and widespread market acceptance of its diverse and tailored product offerings. With over 5.579 million policies issued, NLIC has demonstrated remarkable reach and success in bringing essential insurance coverage to a significant portion of the Nepalese population, thereby contributing significantly to financial security across countless households. Perhaps one of the most reassuring statistics for both policyholders and potential investors is the company's death claim settlement rate, which stands at an exemplary 99.13%. This exceptionally high settlement rate is a powerful indicator of NLIC's operational efficiency, its adherence to ethical practices, and a deep, unwavering commitment to fulfilling the promises made to policyholders and their families during their most challenging times. In an industry fundamentally built on trust and reliability, such a high claim settlement rate not only significantly enhances the company's reputation and brand value but also serves as a strong competitive advantage, fostering greater confidence and loyalty among prospective clients and solidifying its position as a trustworthy financial partner. Nepal Life Insurance Company Limited's “Leadership Excellence Awards 2026” was more than just an awards ceremony; it was a strategic declaration of its market dominance, operational strength, and ambitious future trajectory. As NLIC continues its journey “Everest Year Clouds and Beyond,” its consistent financial performance, expansive customer base, and unwavering commitment to its stakeholders collectively position it as a formidable leader in Nepal's dynamic and growing insurance sector. This offers a compelling proposition for investors seeking stability, robust growth, and ethical governance in the financial services market. The celebration of its 25th anniversary, coupled with these impressive financial disclosures, unequivocally reinforces NLIC's status as a cornerstone of Nepal's economic landscape and a beacon of excellence in the insurance industry.
NEPSE Plunges Over 43 Points as Non-Life Insurance Sector Leads Market Downturn
The Nepal Stock Exchange (NEPSE) experienced a notable downturn today, with the benchmark index shedding a significant 43.89 points, or 1.71%, to close at 2,513.45. This marked a continuation of negative sentiment, following a marginal 1.04-point loss in the preceding trading session. The market's performance today underscores a period of heightened caution among investors, reflecting broader macroeconomic concerns or specific sector-related pressures that are currently influencing trading decisions. The trading day commenced with the NEPSE index opening at 2,555.07, attempting to find upward momentum early on, reaching an intraday high of 2,556.96. However, this brief rally was short-lived, as selling pressure mounted throughout the session, pushing the index to an intraday low of 2,508.49 before a slight recovery to its closing value. This volatility within the day suggests a dynamic battle between buyers and sellers, with the latter ultimately dominating, leading to a decisive close below key psychological support levels and reinforcing a bearish outlook for the immediate term. Total turnover for the day stood at Rs. 3.64 billion (Arba), generated from the trading of 9,322,185 shares across 347 companies through 68,137 transactions. While this turnover figure represents a moderate level of activity, it indicates that investors were actively rebalancing portfolios amidst the market correction. A turnover of Rs. 3.64 billion, while not exceptionally high, still reflects a decent level of liquidity, allowing for significant price movements and indicating that market participants are engaged. The total market capitalization of the NEPSE-listed companies settled at Rs. 43.23 trillion (Kharba), with the float market capitalization, representing shares readily available for public trading, at Rs. 14.56 trillion. These figures provide a comprehensive snapshot of the overall size and tradable value of the Nepalese equity market. In terms of individual stock performance, SHIVAM CEMENTS LTD (SHIVM) emerged as the leader in turnover, recording transactions worth an impressive Rs. 263.8 million (26.38 crores). The company’s stock closed at Rs. 664.00, indicating strong investor interest and possibly resilience in its sector despite the broader market decline. On the other end of the spectrum, Upakar Laghubitta Bittiya Sanstha Limited (ULBSL) defied the bearish trend, hitting the upper circuit with a remarkable 13.16% gain, closing at Rs. 2,725.00. This exceptional performance suggests strong positive sentiment or specific news driving its valuation, possibly related to robust financial results, strategic expansion plans, or favorable regulatory developments. Conversely, Mailung Khola Jal Vidhyut Company Limited (MKJC) experienced the steepest decline, plummeting by 14.98% to close at Rs. 276.30. Such a sharp fall in a hydropower company could be attributed to various factors, including project delays, operational issues, changes in power purchase agreements, or broader sector-specific concerns that have dampened investor confidence. A closer look at sectoral indices reveals a mixed but predominantly negative picture. The Manufacturing And Processing sector showed resilience, recording a modest gain of 0.70%, indicating selective strength and perhaps a flight to quality within certain industrial segments of the market. However, the Non-Life Insurance sector bore the brunt of the selling pressure, experiencing the sharpest decline among all indices, falling by a significant 5.03%. This substantial drop in non-life insurance stocks warrants close attention, as it could signal investor apprehension regarding future profitability, potential regulatory changes impacting premium rates or claim settlements, or an anticipated increase in claims due to recent events. Factors such as recent natural disasters or shifts in underwriting policies could be influencing this sector's performance, making it a key area for investors to monitor. The pronounced decline in this key sector played a significant role in dragging down the overall market index. Today's trading session highlights the ongoing volatility and selective pressures in the Nepalese stock market. While some sectors and individual stocks managed to post gains, the overall sentiment remains cautious, particularly impacting key sectors like non-life insurance. Investors will be closely watching for upcoming economic indicators, corporate earnings reports, and any policy announcements from regulatory bodies to gauge the market's direction in the coming days. The significant drop today, coupled with the previous session's loss, suggests that the market may be undergoing a period of correction, prompting investors to exercise prudence and conduct thorough due diligence before making investment decisions.
Prime Minister Shah and RSP Chairman Lamichhane Convene High-Level Meeting on Rasuwa Flood Response
In a significant demonstration of cross-party collaboration amidst a national crisis, Prime Minister Balendra Shah and Rastriya Swatantra Party (RSP) Chairman Rabi Lamichhane held a crucial meeting today to address the devastating floods in the Bhotekoshi River area of Rasuwa. The high-level discussion, which took place at the Office of the Prime Minister and Council of Ministers in Singha Durbar, Kathmandu, underscores the government's urgent focus on disaster management and relief efforts. The recent floods in Rasuwa, particularly along the Bhotekoshi River, have wreaked havoc on local communities, displacing numerous families and causing extensive damage to critical infrastructure. The mountainous terrain of Rasuwa, often prone to landslides and flash floods, presents unique challenges for rescue and relief operations. The impact extends beyond immediate human suffering, potentially affecting local economies, supply chains, and even the region's nascent hydropower projects, which are vital for Nepal's energy security and economic growth. Such natural calamities, while tragic, also highlight the need for robust disaster preparedness and resilient infrastructure development, areas that are increasingly scrutinized by investors looking for long-term stability. According to Deepa Dahal, the Prime Minister’s Press and Research Advisor, the meeting focused on a comprehensive strategy to mitigate the ongoing crisis. Key discussion points included: immediate search and rescue operations to locate and assist affected individuals; efficient and equitable distribution of relief materials, including food, shelter, and medical supplies, to ensure no affected citizen is left behind; effective management of displaced populations, including the establishment of temporary shelters and health camps; and long-term rehabilitation plans aimed at rebuilding homes, restoring livelihoods, and reconstructing damaged public infrastructure. This holistic approach signals a commitment to not only address immediate needs but also to foster recovery and resilience in the affected regions. The collaboration between the Prime Minister and a prominent opposition leader like Chairman Lamichhane sends a strong message of political unity in the face of adversity. For investors and the general public alike, such concerted efforts by political leadership can instill confidence in the government's capacity to manage national emergencies effectively. It also emphasizes the critical role of coordinated governance in maintaining social stability and economic continuity, even when confronted with unforeseen natural disasters. As Nepal continues to grapple with the aftermath of these floods, the outcomes of such high-level deliberations will be closely watched, shaping the trajectory of recovery and future disaster preparedness strategies across the nation.