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.