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.
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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.
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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.

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