A Turkish Airlines plane has crashed after overshooting the runway as it took off for a flight at an airport in Nepal.

A Turkish Airlines plane has crashed after overshooting the runway as it took off for a flight at an airport in Nepal.  The Airbus A330s front landing gear collapsed and the plane nose-dived on the runway at Tribhuvan International Airport in Kathmandu.  No passengers on the flight, THY726, were seriously hurt in the incident but some were given medical attention after evacuation.  Airport officials said the plane with 238 people on board was coming from Istanbul on Wednesday when the accident happened.  Images of the aircraft circulating on social networking site Twitter showed the plane lying on a grassy ground near the fire station with its nose on the ground.  Bad weather conditions and low visibility have been blamed for the disaster.  The aircraft was put on a long hold and had also aborted earlier approach for landing for a go-around.  The runway at TIA has been closed after the incident.

Just where is CDS and Clearing Limited stuck?

Nearly a decade and a half have elapsed since the CDSC was inaugurated on March 31, 2011. Since then it has consistently drawn sharp criticisms for failing to function in a full-fledged manner.

The effort to bring CDSC to full operation has been plagued with fits and starts right from the beginning.

First, it was capital gains tax issue. There were differences among stakeholders on how to charge fee for every transaction in CDS system and incorporate it in capital gains. Even before the issue was resolved, brokers were already reluctant to work as Depository Participant and Clearing members—entities that work as interface between CDSC and investors--were because of the net worth requirement issue. In addition, the investors were complaining about high fees. Both of the issues were resolved.

That cleared the way for the CDSC to go ahead and create a system that would enable online trading. After putting in place the necessary systems, CDSC tested it with its staff and then invited a few brokers to check the system, during which everyone was convinced that the system was working perfectly.

After that, it was tested full-fledged with the involvement of all the brokers. Only after the mock trading and settlement was successful, NEPSE and CDSC took the next step of going live with Demat trading, clearing & settlement of banking stocks.

Even though investors were happy seeing how everything worked seamlessly and Nepal Rastra Bank, after studying how demat system works and how demat shares can be pledged, allowed banks to provide loan against demat shares, SEBON and CDSC seem to be in no hurry to speed up the full implementation of the online trading.

It was believed that online trading, facilitated by CDSC, would free the traders and individual investors from the hassles and risks associated with physical shares and give similar boost to the capital market as was witnessed after Nepse was computerized.

Many investors are now aware that being able to track share prices is not enough and that they should also be able to trade in their shares swiftly and safely. But the delay in bringing CDSC to full-fledged operation has hindered a full-blown online trading in shares. 

As per CDSC’s website, of around 230 listed companies only 79 have registered themselves for the dematerialization process and 55 are said to be in pipeline. Therefore, with most shares still in physical form, at present, buyers and sellers have to wait for weeks and months for ownership transfer of shares. The manual verification and transfer of shares is not only cumbersome but also poses risks of loss and damage to the documents during the process.

“In order to expedite the dematerialization process, the CDSC has already made it mandatory for all commercial banks and other registered companies’ shares to be converted to electronic form in case of individual requests for ownership transfer,” said Sabina Pujari, head of Business Development and Operations at CSDC. “We have also been urging other listed companies, through written correspondence and follow up calls, to get themselves registered for the dematerialization process.”

“Those who have traded through dematerialized shares have expressed appreciation for the swifter ownership transfer, a process that can take months in case of physical shares,” Pujari added.

Despite clear benefits of dealing in shares in electronic form, SEBON and CSDC have been a little too slow in pushing for dematerialization of all listed shares.   
 

Why is there no hurry?

Stock Brokers’ Association General Secretary Nitesh Agrawal said brokers are desperately waiting for the CDS system to work full fledged. “For brokers, delays or loss or misplacement of shares leads to revenue loss in the immediate term and loss of faith among investors who deal with us in the long run,” said Agrawal, who is also the managing director of ABC securities. “The system would be equally beneficial for common investors who would not have to worry about loads of paperwork while buying and selling shares.”

Agrawal attributed the delay in fully implementing CSDC to the lack of enthusiasm among common investors about electronic shares. “For those who are used to holding shares in hands and keeping them at home, the sudden realization that the certificates would be stored at some distant location in electronic form is hard to accept,” Agrawal said.

But the sooner CDSC comes into full operation the faster all investors will get accustomed to the new system. “One way CDSC can win the trust of investors is by making the whole system more user-friendly. At present, there is no way for the investors to find out the details about their shares online,” Agrawal added. 

But there are enough indications of CDSC developing cold feet before taking the leap into a fully operational system. But Agrawal tried to reassure the CDSC of brokers’ support in case it faced problems. “Although brokers are aware of the high stakes involved, they have time and again urged CDSC to go full-fledged with assurances that they would stand together in the face of any difficulty,” Agrawal said.

Meanwhile, SEBON, the regulatory body, had formed a committee a few months ago to study the functioning of the Central Depository and Clearing System, following which the regulatory body asked some clarification from CDSC on the capacity of its systems prior to starting full-fledged demat clearing and settlement.

Niraj Giri, the spokes person of SEBON, said that the last he had heard from CDSC was that they were still working on strengthening the system. “CDSC is the ultimate implanting authority of the dmat system and SEBON will not stop it from becoming fully operational. We are willing to provide CDSC with all kinds of support it needs to become fully operational.”

Meanwhile, if we are to believe a former IT official with Nepse who was part of the team that installed the CSDC system, there is no reason to fear. “I am confident that the system is able to cope with much higher volume without any hassles,” said Harish Pokharel, Former Senior IT officer, Nepse. “The hardware used are robust and can cope with surge of volume. If a pattern of increased load is observed in server than it can be easily load balanced with the introduction of new servers.”

He further said, “In my opinion, CDS and clearing system can be run in full fledged without any worries. Any unforeseen obstacle seen can be handled during that time.”

According to him, the system is hassle-free and is sure to benefit the concern stakeholders. Business will rise for brokers. The shares will be even more liquid for investors, which in turn will bring huge influx of capital flow in the country economy.

“Transiting to new system has challenges and what we need is gut. In Nepal, it's in our nature that we are reluctant to face that challenge. The problem is that nobody wants to be responsible if something goes wrong. Things go wrong but they can be rectified,” said Mr Pokharel.

Experiences show that stakeholders are reluctant to embrace change and those in the decision-making positions wary of taking responsibilities. Commercial banks, whose shares are now traded only in demat form, adopted it only after Nepal Stock Exchange issued a circular warning them of suspending their trading.

Krishna Pokhrel, a senior Nepse official, said that the NEPSE had issued a circular for the commercial banks to adopt dmat process in good faith, which got a positive response. “We can urge other sectors to do it as well, but then CDSC itself has to be fully prepared. They have two committees to advise them on whether the system is ready for a full-fledged operation. We are waiting to hear from the committees,” said Pokharel.

Mr Giri of SEBON said, “If we look at it as an outsider, we don’t see any reason for the delay. Gradually, everybody should push for the full implementation of the system. We all know that the capital market’s further growth and expansion depends greatly on the CDSC going online as soon as possible.”   
 
Selling and buying shares through an online system is easy, swift, convenient, and free from risks associated with physical shares. At a time when a huge number of shares are yet to be converted to electronic form, online trading is still a distant reality. A fully operational online share trading system will also offer a great relief for common investors residing outside the Valley as well as those living abroad.

Raptibheri floating IPO share to general public from today

Raptibheri Bikas Bank Limited is issuing its Initial Public Offering (IPO) worth Rs 5 crore from Magh 22, 2071.

The class ‘B’ development bank based in Banke, Bardiya and Dang district has stated that the issue will close on Falgun 8, or by Magh 26 at the latest.

 One must apply for a minimum of 50 units and maximum of 1,00,000 units of the primary shares being floated at the face value of Rs 100 per unit.

 Of the total 5,00,054 units of the shares being issued, 25,003 units have been earmarked for the mutual funds and another 10,001 have been set aside for the bank staffers.

 NMB Capital Limited is the issue manager for this issue.

 The development bank’s paid-up capital will rise to Rs 12.50 crore from the existing Rs 7.50 crore following the IPO.

 The development bank has head office in Nepalgunj (Banke district) and branches in Bardiya and Dang district.

 The company EPS stands at Rs 10.64 and has Rs 1.78 crore in reserve fund as per the last fiscal year 2070/71 financial statement.

ShareSansar, February 5

Century Bank proposed 25% right share; book closure on Magh 28 for AGM

Century Commercial Bank Limited has proposed 25 percent right share to its shareholders after the issuance of 6 percent bonus share. Earlier, the bank has already proposed 3.47 percent cash dividend and 6 percent bonus share. However, the decision is subjected to approval from Bank’s upcoming Annual General Meeting.

The bank also announced the date for its 4th Annual General Meeting which will be conducted on Falgun 28, 2071. The register of their shareholders will remain close for the same purpose from 2071-10-28 to 2071-11-28.
ShareSansar, February 3:

Garima Bikas Bank Limited has posted net profit of Rs.65.27 million and published its 2nd quarter company analysis of the fiscal year 2071/72.

Garima Bikas Bank Limited has posted net profit of Rs.65.27 million and published its 2nd quarter company analysis of the fiscal year 2071/72.

Machhapuchchhre Bank Limited has posted net profit of Rs.344.08 million and published its 2nd quarter company analysis of the fiscal year 2071/72.

Machhapuchchhre Bank Limited has posted net profit of Rs.344.08 million and published its 2nd quarter company analysis of the fiscal year 2071/72.

6 companies listed bonus share; Investors now can sell FY 70/71 bonus shares

Nepal Stock Exchange Limited (NEPSE) has listed bonus share of six different companies today for trading. Now the investors holding bonus share of these six companies can sell their shares.

Earlier, Central Finance Limited, Arun Valley Hydropower Development Co. Limited, Business Universal Development Bank Limited, Sanima Bank Limited, Global IME Bank Limited and Bhrikuti Development Bank Limited listed their bonus share in NEPSE for trading.

Central Finance listed 1,70,216 units, Arun Valley listed 6,95,980 units, Business Universal listed 9,26,269 units, Sanima Bank listed 33,22,732 units, Global IME listed 86,97,817 units and Bhrikuti Development listed 9,74,655 units bonus share.

ShareSansar, February 2:

Kumari Bank posts outstanding profit growth; earns Rs 18.16 crore in Q2

Kumari Bank Ltd. (KBL) has posted an outstanding profit growth of 194.08 percent in the second quarter of last fiscal year 2071/72. 

According to the second quarterly report of the bank published, the net profit increased to Rs 18.16 crore, up from Rs 6.17 crore in the corresponding previous year quarter ending. 

The profit was largely propelled by its net interest income of Rs 43.41 crore compared to Rs 35.17 crore of last fiscal year which is almost 23.39 percent growth. The increase in net interest income clearly signals that the banks was able to increase its core business activities.

Kumari Bank able to collect Rs 34.37 arba in deposit and mobilized Rs 25.28 arba in loan and advances in the last fiscal year as compared to Rs 27.40 arba in deposit and Rs 21.51 arba in loan by the end of the second quarter of the fiscal year 2071/72.

The bank is able write back Rs 5.65 crore whereas it’s provisioned Rs 9.63 crore for possible losses.

Kumari Bank annualized EPS now stands at Rs 20.75, per share net worth at Rs 134.58 and P/E ratio at 18.08 times.

Its NPA stood at 3.84 percent.

ShareSansar, January 26:

BOD meeting of Siddhartha Insurance proposes 26.315% dividend

The BOD meeting of Siddhartha Insurance Limited (SIL) has proposed 10 percent stock dividend and 16.315 percent cash dividend to its shareholder from its net profit earned last year.

However the decision is yet to get approval from the Insurance Board and its upcoming 13th Annual General Meeting.

ShareSansar, Jan 25:

Global IME Q2 result: Profit Growth limit to 1.8%, earns Rs 54.18 crore

Global IME Bank Limited has posted a profit growth of meager 1.8 percent in the second quarter of the current fiscal year 2071/72.

According to an unaudited financial statement published today, the bank disclosed that it achieved a net profit of Rs 54.28 crore in the second quarter of the current fiscal year compared to the net profit of Rs 53.28 crore in the corresponding period of last fiscal year 2071/72.

The bank’s net interest income reached Rs 1.15 arba in the second quarter this year, which is a growth of 46.11 percent compared to the income of the same period last year.

While the bank was required to provision Rs 28.91 crore in the second quarter this year for the possible losses, it could manage to write back only Rs 17.84 crore that it had provisioned in the previous years for possible losses.

Global IME Bank observed a satisfactory growth in terms of deposit collection and loan supply during the review period. While the bank mobilized Rs 55.20 arba on deposit in the second quarter this year, it extended a total of Rs 47.56 arba on loans.

It had mobilized a total of Rs 36.97 arba on deposit and Rs 30.11 arba on loans in the corresponding period of the last fiscal year 2071/72.

The bank also managed to slash its non performing loan (NPL) to 2.57 percent in the second quarter from 3.22 percent in the corresponding period of last year.

The annualized earning per share (EPS) and the net worth per share of the bank stand at Rs 21.57 and Rs 137.75 respectively. The P/E ratio remained 24.48 times. 

ShareSansar, January 26:

Soaltee Hotel Limited is distributing 17.89% Cash Dividend warrant to its shareholders from (9th Magh, 2071).

Soaltee Hotel Limited is distributing 17.89% Cash Dividend warrant to its shareholders from (9th Magh, 2071).

Mega Bank conducting 4th AGM today; 12% bonus in offing

Mega Bank Limited is convening its 4th annual general meeting (AGM) today. The AGM is schedule to starts at 11:00 AM at Army Officer Club, Bhadrakali, Kathmandu.

It has already proposed 12 percent bonus share to its shareholders from the profit it earned in the last fiscal year 2070/71.The decision, however, is subject to the approval of Bank’s AGM.

The major agendas for the AGM are approval of financial statement of FY 2070/71, appointment and approval of dividend declared by the BOD.

Mega Bank Limited has earned Rs 305.53 million net profit in the fiscal year 2070/71.

Summit Microfinance to hold its 6th AGM today; 38.95% dividend to be approved

Summit Microfinance Development Bank Limited (SMFDB) is convening its 6th annual general meeting (AGM) today. The AGM is schedule to starts at 8:30 AM at Agrasan Building, Birtamod, Jhapa.

It has already proposed 38.95 percent dividend – 26 percent bonus share and 12.95 percent cash – to its shareholders from the profit it earned in the last fiscal year 2070/71.The decision, however, is subject to the approval of Bank’s AGM.

The major agendas for the AGM are approval of financial statement of FY 2070/71 and approval of dividend declared by the BOD.

Summit Microfinance has earned net profit of Rs 1.4 crore and has paid up capital of Rs 2.8 crore.
ShareSansar

Nepal Investment to start distributing 15% bonus share certificate from Sunday

Nepal Investment Bank Limited (NIBL), one of the blue-chip companies, is distributing bonus share certificate to its shareholders from Poush 27.
 
NIB had endorsed 25 percent cash and 15 percent bonus shares to the shareholders from the net profit it earned in the last fiscal year 2070/71.
 
NIB already distributed 25 percent cash dividend to its shareholders back in Kartik, 2071.
 
The cash dividend would be distributed from 09:30 AM to 3:00 PM Sunday through Thursday and from 09:30 AM to 01:00 PM on Friday at its RTS, NIBL Capital Limited located in Lazimpat, Kathmandu, according to a notice issued by the bank today.
 
The company has published the list stating the distribution date as per the shareholders numbers.

ShareSansa

NRB again collecting Rs 10 billion from BFI’s; last auction rate stood at 0.1561%

Nepal Rastra Bank (NRB) is again collecting Rs 10 billion from the banks and financial institutions (BFIs) through deposit auction instrument for 3 month period. This is the eight time NRB is using this instrument to absorb liquidity.

On January 7, 2015 only NRB collected Rs 10 billion from BFI’s. The weighted average deposit auction stands at 0.1561 percent. This rate clearly signals that BFI’s is flooded with liquidity.

The central regulatory bank had introduced this new instrument through its Monetary Policy for Fiscal Year 2014/15 after its other short-term instruments, including frequent reverse repos, failed to resolve the liquidity surplus problem in the banking system.

Though BFIs can count their deposit in NRB as the statutory liquidity ratio (SLR), the returns to them have remained negligible so far due to the competitive bidding process.

The interest rates of the deposit auction are fixed through the auction.

• sharesansar

Allotment of NIBL Samriddhi Fund-I, 100% up to Rs 50,000 & 34.77% to rest

The allotment of ‘NIBL Samriddhi Fund-I’ -promoted by the Nepal Investment Bank and operated by Bank’s subsidiary NIBL Capital Limited- took place yesterday.

According to the NIBL Capital, it has allotted 100 percent to those who applied up to Rs 50,000 units and 34.77 percent for those who applied more.

The seven-year closed end NIBL Samriddhi Fund-1, the first mutual fund launched by NIBL Capital Limited and managed by Nepal Investment Bank Limited, has been oversubscribed by more than 3 times. The issue was closed on 21st Mangsir, 2071.

The mutual fund was originally offered 80 million units, but following a high number of applications for the mutual fund units priced at Rs 10, the fund manager allotted units worth Rs 1,000 million as allowed by the Mutual Fund Regulations 2067.

Out of total 100,000,000 units, 15,000,000 units or 15 percent of the total sold units has been allotted for the Nepal Investment Bank and NIBL Capital Ltd. together and the remaining 85,000,000 units was set aside for the general public.
ShareSansar

Policymakers nervous about Nepal's possible graduation

As Nepal is gearing up to move from the group of least developed countries (LDCs) to that of developing nations, policymakers are expressing a palpable sense of nervousness on whether the country would be able to retain much of the achievements made so far by the time of formal graduation.

Criteria met

Nepal has high chances of moving to the league of developing nations by 2021, as it has met two of the three goals fixed by the United Nations (UN) for graduation.

The first criterion fixed by the UN for LDC graduation is per capita gross national income, which, as of March 2012, should stand at $1,190. Second is the human resource development, which is measured using Human Assets Index. The index includes two indicators each on education and health and the country’s score should stand at 66 or above. Third is the level of economic vulnerability, which is measured using the Economic Vulnerability Index (EVI). This index includes eight indicators and the score should stand at 32 or below for graduation.

If an LDC meets two of the three goals, it qualifies to move to the league of developing nations.

Although Nepal’s per capita gross national income — at $717 — is way below the UN threshold for graduation, it met targets included in the EVI in 2012, with a score of 26.10. Since then Nepal’s score in the EVI has improved to 24.58 with a three-year moving average of 24.91, shows a presentation made recently by National Planning Commission (NPC) Member Swarnim Wagle.

Also, recent calculations made by the NPC show that Nepal had attained a score of 67.2 in Human Assets Index in 2012, which was 1.2 points more than the UN threshold.

Nepal has since progressed on this front and now has a score of 69.2, shows Wagle’s presentation.

“Since we have already met two of the three targets, the UN Committee for Development Policy will definitely review our case in March, making the country eligible for graduation by 2021,” NPC Programme Director Ravi Shankar Sainju, who has been overseeing the country’s graduation process, told The Himalayan Times.

Cause for concern

Yet, what seems to be worrying policymakers like Sainju is uncertainty over sustainability of the progress made so far because of low per capita income in the country.

“So far, most of the LDCs have graduated on the basis of income level. But since our case is different, we are concerned about failing to retain the achievements,” said Sainju.

A paper earlier floated by NPC said that the country needs to invest a whopping Rs 19.80 trillion in various sectors till fiscal year 2021-22 to meet the UN’s per capita gross national income target required for graduation.

Sainju doubts the country will be able to mobilise such a huge fund over the next seven years, as the economy is still moving ahead at a slow pace. “But even if it does, we may not be able to make productive use of the money because we have not addressed some of the basic issues required for economic growth,” he said.

“In this regard, the country’s focus should be on providing quality education and skill-based training to raise the productivity of the workforce.”

The latest Human Development Report of the UN shows only 28.3 per cent of country’s population aged 25 and above have acquired some years of secondary level education. At the same time, many youths do not want to take up vocational courses, as they look down upon jobs such as carpentry and masonry — although they are in high demand.

“Number of years of formal education and skill-based training has direct correlation with workforce’s productivity and income level. So, the state must focus in this area,” Sainju said, adding, “This will gradually lead to labour reallocation, as it’ll encourage workers to move from low-income to high-income jobs, which will ultimately accelerate economic growth.”

Way ahead

Currently, over 60 per cent of the country’s workforce is engaged in agriculture, and 3.83 million plots of land of various sizes are being used for the purpose. But food generated from almost 60 per cent of these plots is not sufficient to feed plot owners’ family members for up to 12 months, the National Agriculture Census 2011-12 shows. This means there is almost zero return on hard labour put in by many engaged in farming jobs.

“Because of engagement in such unproductive works many are still living below the poverty line. This is the reason why labour reallocation is important,” said Sainju.

The incidence of poverty in the country dropped by 11 percentage points to 31 per cent in between 1996 and 2004 — an achievement which was widely acclaimed. Yet, as of fiscal year 2012-13, 23.8 per cent, or almost a quarter, of the total population was still trapped in poverty.

“Replaying the events of 1996 to 2004 to lift these people from the traps of poverty is almost impossible, as these groups are most vulnerable and are economically and socially backward. So, we have to give them access to education and vocational training, raise their capacity, create job and self-employment opportunities and create proper safety nets so that they can deal with income and expense shocks,” said Sainju.

“Unless we lift a significant portion of people living under the poverty line, we may not be able to increase per capita gross national income, which is crucial to sustain the progress made so far.”

Source: THT

Good returns lure leaders, teachers to apiculture

Rastriya Janamorcha Party leader Goma Shahi has a new identity now. When he is not engaged in affairs of state, the politician-cum-farmer rears cows and has recently started beekeeping. “Nepal is an agro-based country. This is why I have ventured into an agro-based business,” Shahi said.

Bhola Sharma, president of the Bageshwori chapter of the Nepal Students’ Union (NSU), is involved in commercial apiculture. The student leader from Kohalpur believes that the profession will make him financially sound and also help him pursue further studies. 

“Politics and studies both require capital. Being the son of a farmer, I have become involved in farming to meet these objectives,” Sharma said, adding that he had gotten into bee farming as it was relatively easier. 

Gopal Adhikari of Kohalpur is a teacher at Bageshwori Multiple Campus. “I earn Rs 15,000 to Rs 20,000 monthly from bee farming,” Adhikari said, adding that he was planning to expand the farm. The first commercial bee farm in Banke district was established in Kohalpur.

Janakalyan Multipurpose Cooperative has been supporting the initiative. The cooperative gives Rs 4,000 per hive. According to Lil Bahadur Rana, the cooperative has been extending support with a motive to increase people’s interest in the agro sector. “In the first phase, we are helping 200 farmers technically and financially.

We aim to increase the number gradually,” Rana said. The proximity to the Banke National Conservation Area which contains abundant flowers and plants has helped bee keeping to flourish in the area.

According to experts, one beehive produces 25 kg to 40 kg of honey annually.

Honey sells for Rs 450 to Rs500 per kg. Purna Basnet, president of the Federation of Bee Farmers Association, said that climatic conditions and food for bees play a crucial role in bee farming.

Source: The Kathmandu Post

NMB Bank starts distributing 20% bonus share certificate from today

NMB Bank Limited (NMB) is distributing bonus share certificate to its shareholders from today.

NMB Bank AGM had endorsed 20 percent bonus shares to the shareholders from the net profit it earned in the last fiscal year 2070/71.

The bonus share certificate would be distributed from 10:00 AM to 2:30 PM Sunday through Thursday and from 10:00 AM to 01:00 PM on Friday at its RTS, NMB Capital Limited located in Babarmahal, Kathmandu, according to a notice issued by the bank today.

The company has published the list stating the distribution date as per the shareholders numbers.

Sharesansar

Janaki Finance pledges 70% bonus share plus cash dividend for tax purpose

Janaki Finance Company Limited has pledged 70 percent bonus share plus cash dividend for tax purposes from the massive net profit it posted in the last fiscal year.

A meeting of Board of Directors took the decision to this effect yesterday, a highly placed source at the finance company based in Janakpurdham told ShareSansar today.

Talking to ShareSansar earlier this month, Ram Nritya Shama, the Chief Executive Officer of the finance company had said that they were planning to distribute around 65 percent bonus share as well as cash dividend also because they have a reserve of dividend that the central bank did not allow them to distribute in the previous fiscal year 2069/70.

CEO Sharma also informed that they are also planning to hold the AGM toward Mangshir end or Poush.

CEO Sharma, however, refuted rumors in the market that Janaki Finance will pledge around 100 percent bonus share this time also because its paid-up capital stands at just Rs 14.62 crore.

It may be noted that the central bank had blocked dividend proposed by the finance company for the previous fiscal year, citing high non-performing loan.    

Janaki Finance Company Limited posted 125 percent increase in the net profit in the quarterly report published today for the fiscal year 2070/71. 

In comparison to the corresponding quarter of last fiscal year the net profit increased from Rs 3.97 crore to Rs 8.95 crore in the fourth quarter of the fiscal year 2070/71. 

The finance company accumulated deposits of Rs 1.20 arba and the loan flow was Rs 91.17 crore in the fourth quarter. As compared to the corresponding quarter of last fiscal year the deposit and loan was Rs 1.01 arba and Rs 70.50 crore respectively.

Write back of provision for possible loss has also increased to Rs 8.01 crore up from Rs 2.36 crore in the fourth quarter. 

The rise in the net profit is also due to the increase in the core business of the finance company as the net interest income has surged to Rs 10.71 crore from Rs 7.71 crore in comparison to the corresponding quarter. 

The NPL of the finance company also dropped to 4.89 percent by the end of the fourth quarter, down from 11.82 percent at the end of the previous fiscal year 2069/70. 

Likewise the EPS of the finance is Rs 61.20, per share net worth is Rs 272.01 and the P/E ratio is 8.17 times. 

AGM of Jebil’s Finance approved 14.74% dividend

Jebil’s Finance Limited (JEFL) has successfully conducted its 5th AGM yesterday. The AGM has approved the decision to distribute 10 percent bonus and 4.74 percent cash dividend to its shareholders.

The company has collected Rs 76.76 crore as deposit in the fiscal year 2070/71 which is more than 32 percent compared to previous fiscal year. During review period, finance has mobilized Rs 67.20 crore in loan and advances and earned Rs 4 crore as net profit.
Sharesansar

Clean Village Microfinance to issue IPO share, appoints NMB capital as Issue Manager

Clean Village Microfinance Limited sign a pact with NMB Capital Limited for issuing primary share to the general public. The company is planning to issue 1,20,000 units ordinary share to general public.

Clean Village Microfinance CEO Jitendra Sharma Lamsal and NMB Capital CEO Shreejesh Ghimire signs an agreement. 

Microfinance has provided collateral free loan to more than 12 thousand people through its 22 branches and has mobilized Rs 27 crore in loan and advances.

The company has paid up capital of Rs 4 crore. Clean Energy Development Bank has 51 percent share in this company.

Rapti Bheri Bikas Bank also get nod for IPO

Securities Board of Nepal (Sebon) has granted its approval to Rapti Bheri Bikas Bank Limited (RBBL) to launch its Initial Public Offering (IPO).

According to Sebon officials, the capital market regulator decided to permit the regional development bank to issue 500,054 units of primary shares with face value of Rs 100 to public on Friday.

Rating agency ICRA Nepal has assigned an ´[ICRANP] IPO Grade 4´ rating to the IPO, indicating below-average fundamentals to the proposed public issue.

Headquartered in Nepalgunj, RBBL started its operations in February 2010. It has license to operate in Banke, Dang and Bardiya districts. The bank is headquartered at Nepalgunj.

Source: Republica

Upper Tamakoshi gets final approval from SEBON to issue primary share

Upper Tamakoshi Hydropower Limited one of the most awaited primary share has finally received final nod from security board of Nepal (SEBON) to issue primary share to locals of the project affected district and its lending institutions.

As per the provision, the company using natural resources must set aside at least 10 percent share to general people residing in the project affected area.

The IPO of the Upper Tamakoshi will be the biggest in the capital market of the Nepal in terms of volume of shares. The 456-MW hydropower project has paid-up capital of Rs 10.59 billion.

Though it also plans to issue a total of 15 percent primary shares to general public, it is issuing 34 percent of its shares to the locals of Dolakha, staff of Nepal Electricity Authority (NEA), UTKHPL, lending institutions and the borrowers of the Employees Provident Fund (EPF) in the first phase.

Citizens Investment Trust is the issue manager of UTKHPL. The shares will have face value of Rs 100 each.

Upper Tamakoshi Hydropower Project (456MW) is close to completion, with only 30 percent of the civil works left to be done.

The completion of the national pride project is expected to reduce load-shedding significantly.

If the current pace of work continues, the project should start generating electricity by mid-2016, according to project officials. The country’s largest under-construction hydropower project is located 68km from Charikot, the district headquarters of Dolkha.

A senior official of Nepal Electricity Authority (NEA), a key promoter of the project, said once the project completes, power outage hours would reduce significantly, particularly during the rainy season.

Sharesansar

NRB allows opening yuan bank accounts

Individuals and firms in Nepal having foreign exchange earnings can open Chinese yuan accounts in commercial and development banks, the Nepal Rastra Bank (NRB) said on Sunday.

Issuing a directive to A and B class banks and financial institutions, the central bank lifted the ban on banking in the Chinese currency, which is expected to help people doing transactions with Chinese nationals and firms.

The government had been imposing restriction on opening accounts in Indian and Chinese currencies. And, the restriction on opening Indian currency (IC) accounts remains. International agencies, including diplomatic ones, foreign firms and their agents, manpower agencies, those employed in foreign land, international and national non-govenrment organisations, foreigners working in Nepal, various companies involved in foreign currency transactions such as travel agencies, hotels and money changers and the contractors selected through global tender, among others, can open such accounts.

Even though yuan accounts have been permitted, NRB has placed certain restrictions on exchanging Chinese currency with other convertible currencies without its approval. There is no restriction on converting yuan into another currency for payment and opening another account after such an exchange.

This measure has been taken in line with the agreement signed with the People’s Bank of China during NRB Governor Yubaraj Khatiwada’s recent visit to China. “The agreement signed with the Chinese central bank has opened the way to allowing Nepali’s to open yuan accounts in Nepali banks,” said Bhisma Raj Dhungana, acting executive director of NRB. “Now Chinese currency will be treated like other convertible foreign currencies such as the US dollar.”

He added that as the Nepali rupee was pegged to the Indian rupee, the central bank could not allow people to open Indian currency accounts here. “One cannot covert IC into US dollars because of the pegging,” he added.

Following the accord with the Chinese central bank enabling the increased use of Chinese currency in bilateral trade and payment, NRB had recently allowed Nepali banks to open accounts in Chinese currency in any Chinese commercial bank.

The latest directive has also allowed them to open Chinese yuan accounts in Chinese banks by selling other convertible currencies. Likewise, NRB has permitted the use of Chinese currency for payment and adjustment of transactions.

Dhungana said the latest NRB measures would help internationalize Chinese currency besides boosting Chinese arrivals and investment in the country. “Chinese tourists can now visit Nepal by carrying their own domestic currency, and that will help boost arrivals,” he said.

Source: Tha Kathmandu Post

RBB plan to issue share to general public worth Rs 3 billion

Rastriya Banijya Bank (RBB) one of the oldest and state owned commercial bank planning to go public by issuing primary shares worth Rs 3 billion, which is 30 percent of the total share capital of the bank.

RBB which already fulfilled the capital adequacy ratio requirement in the second quarter to fully recover from the crisis said that the company is waiting for the government’s approval for the proposed IPO. RBB, which was on the brink of collapse due to massive loan defaults, had undergone the financial sector reforms programme for over a decade.

Rastriya Banijya Bank Limited (RBB) has able to make its capital adequacy ratio (CAR) positive by 10.05 percent. Prior, RBB capital adequacy ratio was negative by 33 percent.

Recently, Rastriya Banijya Bank has sold 15 percent promoter share of Nepal Investment Bank Limited and Nepal Aawas Finance Limited on auction to the general public and institutional investors from which the bank has been able to earn Rs 2.8 arba approximately, which help to increase its capital fund.

Government of Nepal (GOI) has injected Rs 4.32 billion as capital in 2069. The bank has also converted Rs 3 billion as capital which they have received from World Bank under financial sector reform program

The bank also converted preference share worth Rs 78.70 crore to ordinary share in Asar, 2070. RBB is also planning to issue ordinary share to the general public in the next fiscal year.

RBB said the IPO will change its shareholding structure and the participation of the public will help it grow.

“Rather than bringing in a strategic partner, we think going public will help the bank achieve sustainable growth,” RBB Chairman Rewat Bahadur Karki said at a press meet here on Sunday.

The bank has lowered the non performing loan (NPL) level to 4 percent from once more than 60 percent. It has been earning profits for last six years. Last year, it earned a net profit of Rs 1.75 billion. RBB also plans to expand its businesses. A credit-to-deposit (C/D) ratio of just 61 percent gives the bank a huge space to expand credit.

It plans boost its credit disbursement by Rs 15 billion to Rs 77 billion by this fiscal year.
Share Sansar

STOCK WATCH: Last day to clinch 7% bonus and 1.5% cash of Civil Bank

Today is the last day for the investors to get hold of the dividend pledged by Civil Bank Limited (CBL) for the fiscal year 2070/71. 

Civil Bank is closing its shareholder register book from tomorrow (Poush 22) to convene its annual general meeting (AGM). 

The bank has scheduled its AGM on Magh 9, 2071.  Only those investors buying shares of the bank till today (Monday) will be entitled for the dividend that it has announced for the fiscal year 2070/71 and allowed to attend the AGM.

Civil Bank Limited has already proposed 7 percent bonus share and 1.5 percent cash dividend to its shareholders from the profit of FY 2070/71.

Share Sansar

प्रभु बैंकको कारोबार खुल्यो, पहिलो दिननै सेयर मूल्य १० प्रतिशत बढ्यो, २२७ रुपैयाँमा बन्द

काठमाडौं। प्रभु बैंकको सेयर कारोबार आइतबारबाट सुरु भएको छ। बैंकको सेयर प्रति कित्ता दुई सात रुपैयाँका दरले किनबेच हुने गरि खुलेको थियो।

 

मर्जरका कारण लामो समयदेखि बैंकको सेयर कारोबार स्थगित गरिएको थियो। बजार खुलेसँगै बैंकको सेयर मूल्य बढेको थियो। १० प्रतिशतसम्म मूल्य बढेपछि २२७ रुपैयाँमा अन्तिम कारोबार भएको थियो।

 

किस्ट बैंक, प्रभु विकास बैंक, गौरिशंकर डेभलपमेन्ट बैंक र जेनिथ फाइनान्स गाभिएर प्रभु बैंक बनेको हो। यसअघि तत्कालि प्रभु फाइनान्ससँग वैभव फाइनान्स र समृद्धि विकास बैंक गाभिएर प्रभु विकास बैंक बनेको थियो। 

- See Bizmandu

राष्ट्रिय बाणिज्य बैंकले सर्वसाधारणमा ३० % सेयर जारी गर्ने, पत्रकारलाई ५० हजारको पुरस्कार

काठमाडौं। राष्ट्रिय बाणिज्य बैंकले सर्वसाधारणलाई सेयर जारी गर्ने प्रकृया अगाडि बढाएको छ। बैंकले सर्वसाधारणलाई ३० प्रतिशत सेयर वितरण गर्न लागेको हो।

 

'राष्ट्र बैंकको निर्देशन अनुसार सर्वसाधारणलाई सेयर जारी गर्न सरकारसँग अनुरोध गरेका छौं,' प्रमुख कार्यकारी अधिकृत कृष्ण शर्माले बैंकको स्वर्ण बर्ष २०७१ र सुधारको कार्यक्रमका बारेमा जानकारी गराउने उदेद्दश्यले आयोजित पत्रकार सम्मेलनमा आइतबार भने, 'स्वीकृति आएपछि चालु बर्षभित्रै सेयर निस्कासन गरिसक्छौं।'

 

बैंकको अहिले पुँजी आठ अर्ब ५८ करोड रुपैयाँ छ। बैंकले यसलाई ७० प्रतिशत मानेर बाँकी ३० प्रतिशत सेयर जारी गर्ने प्रकृया सुरु गरेको हो। 

 

बैंकले कृषि कर्जा अन्य बैंक तथा वित्तीय संस्थाको भन्दा एक प्रतिशत बिन्दु कममा उपलब्ध गराउने जनाएको छ। बैंकले पाँच प्रतिशतमै कृषि कर्जा उपलब्ध गराउने जनाएको हो। 

 

बैंकले प्रत्येक बर्ष प्रदान गर्ने गरी पत्रकारिता पुरस्कारको पनि स्थापना गरेको छ। 'वित्तीय तथा अर्थतन्त्रका क्षेत्रमा योगदान पुर्‍याउने पत्रकारहरुलाई प्रोत्साहन गर्नका लागि पुरस्कार स्थापना गरिएको हो,' बैंक सञ्चालक समिति अध्यक्ष डा. रेवतवहादुर कार्कीले भने। बैंकले ५० हजार रुपैयाँ राशीको पुरस्कार घोषणा गरेको हो।

 

कार्कीले वित्तीय क्षेत्र सुधार कार्यक्रमपछि राष्ट्रिय बाणिज्य बैंकको कायापलट भएको बताए। उनले अहिले नेपालको बैंकिङ प्रणालीको गुणात्मक विकास भइरहेको पनि बताए। 

- See Bizmandu