NRB makes no major changes in monetary policy

Nepal Rastra Bank (NRB) has revised inflation target by a marginal 0.5 percent to the average of 8 percent in the mid-term review of Monetary Policy for fiscal year 2013/14.

Other than this, the central bank has not made any major changes in the policy during the mid-term review.

Releasing the mid-term review report of the policy on Monday, NRB Governor Yuba Raj Khatiwada claimed that there was a satisfactory growth in economic activities during the review period after implementation of the policy. “There is balance of payment (BOP) surplus as well as high liquidity in the banking system leading to decline in short-term interest rate,” said Khatiwada. “Though the local currency weakened against US dollar in the first few months of the current fiscal year, there is now stability in the exchange rate.” 

IPO Result of Rural Microfinance Development Center(RMDC)
http://www.sharesansar.com/listnewscategory.php?catid=14&id=

IPO Result of Sana Kisan Bikash Bank Limited
http://www.sharesansar.com/listnewscategory.php?catid=14&id=

IPO Result of MEGHA Bank:
http://www.sharesansar.com/index.php
http://gallery.onlinekhabar.com/download/megha_share.xlsm

IPO share of Commerz & Trust Bank Nepal Limited.

 Issue Price: Rs 100
 Allocated for employees : 3,00,000 units
 Allocated for Siddhartha Investment Growth Scheme-1 : 1,50,000 units
 Allocated for Citizen Unit Scheme : 1,50,000 units
 Minimum Application : 50 units
 Maximum Application : 15,00,000 units
 Opened Date: 6th Falgun, 2069
 Closing Date: 10th Falgun, 2069
 Closing Date (Maximum) : 20th Falgun, 2069

 Issue Managers: 

 - Growmore Merchant Banker Limited

 - Civil Capital Market Limited

 - Nabil Investment Banking Limited

 - Citizen Investment Trust

NBB has forwarded the agreement copy to Nepal Rastra Bank

Nepal Bangladesh Bank Limited has forwarded the agreement copy to Nepal Rastra Bank regarding purchasing of 26,67,500 units Promoter shares of Bank of Asia, Dhaka, Bangladesh (foreign promoter shareholder of NB BANK) and 38,03,434 units of Nepali Promoters (NB group) by IFIC Bank, Bangladesh.

 Source: NEPSE news 

IPO of Civil Bank Limited.

Opening Date:  25th Mangsir, 2069(10th Dec, 2012)

Closing Date: 28th Mangsir, 2069(13th Dec, 2012)

Closing Date (Maximum): 9th Poush, 2069(24 Dec, 2012)
Issue Price: Rs 100
Minimum Application: 50 Kitta

Maximum Application: 20,00,000 Kitta

Total Units: 80,00,000 Kitta

Issue Manager: 

- NCM Merchant Banking Limited

- Citizen Investment Trust

- Nabil Investment Banking Limited

- ACE Capital Limited

Siddhartha mutual fund to open today

Kathmandu,

Siddhartha Mutual Fund’s New Fund Offer (NFO) — Siddhartha Investment Growth Scheme I — will be opened to general public starting tomorrow.“Collection centres will start accepting applications from tomorrow and will be open till Sunday at the earliest,” said CEO of Siddhartha Capital Dhurba Timilsina.

This is the first mutual fund in a decade. The opening day of this mutual fund scheme coincides with the closing of the existing scheme — NCM Mutual Fund.

Nepse suspended NCM Mutual Fund’s trading from today following the completion of its 10-year tenure.

Siddhartha Capital –– a merchant banking subsidiary of Siddhartha Bank Ltd — will launch NFO of the close ended scheme named Siddhartha Investment Growth Scheme I worth Rs 400 million with a five-year tenure.

A unit of the scheme will be primarily priced at Rs 10, and according to the Mutual Fund Guidelines 2069, a single investor has to buy a minimum of 100 units. A single unit holder can obtain 10 per cent of the offer at maximum. The units will later be listed at Nepal Stock Exchange for secondary trading.

“The company is planning to allot the fund units to the applicants within the next 20 days, to start buying the securities as soon as possible,” pointed out Timilsina.

Siddhartha Capital has appointed 100 collection centres across Nepal. Branches of Siddhartha Bank, Growmore Merchant Banker, Western Development Bank and Goodwill Finance will work as collection centres, covering the major cities and towns.The mutual fund is estimated to offer eight per cent dividend to unit holders in the first year and

increase the amount in subsequent years to up to 13 per cent till the end of its tenure, but it can change depending on market conditions.

source: The Himalayan Times,27 Nov 2012

Nabil Bank chairman Shrestha blacklisted

Nabil Bank Chairman Satyendra Pyara Shrestha has been blacklisted by the Credit Information Bureau (CIB) for failing to pay loans taken from Nepal Bangladesh Bank (NBB).  

The CIB action follows the request from the NBB after it failed to recover the loan amount from Shrestha and other business partners of Amie Pharmaceuticals.

Shrestha, a former governor of the Nepal Rastra Bank, will no more be chairman of the Nabil Bank as per the Bank and Financial Institution Act, which states that the blacklisted loanee will be disqualified from being board member any bank and financial institutions. Other blacklisted individuals are Bhibha Kumari Mishra, Indrani Mukharjee and Uttam Kumar Mukharjee.

NB Bank turns most profitable bank

KATHMANDU, Aug 22: 

The fiscal year 2011/12 ended on July 15. It was the year when the entire banking sector was anticipating huge drop in profit levels due to slow recovery of real estate loans and moribund credit market. Yet Nepal Bangladesh (NB) Bank, which was on the verge of bankruptcy more than half a decade ago, not only resurrected in that year but established itself as the most profitable bank in the country.

The once-troubled bank, whose management was taken over by the central bank in November 2006, posted return on assets of 3.4 percent in the one-year period through July 15 - the highest in the banking industry - unaudited fourth quarter financial reports of 32 commercial banks published till Monday show. This means, for every Rs 100 invested in assets, NB Bank generated a return of Rs 3.4.

Annual net profit of Nepalese Banks

Nepal seeks more aid, China wants handicrafts

Nepal asked China for more assistance in infrastructure related projects, particularly three road linkages, and the lessening of Nepal’s trade deficit with China. According to officials, the Nepali side requested financial help in constructing the Khadbari-Kimatankha road, road expansion from Jomsom to the Chinese border and the Simikot-Hilsa road. The Chinese side, on the other hand, requested Nepal to export handicrafts to China. 

“We have noticed that Nepali handicrafts have a good market in China,” said visiting Chinese Vice Minister for Foreign Affairs Fu Ying.

Sebon mulls new bourse

KATHAMNDU, : A fresh study conducted by the Securities Board of Nepal (Sebon) shows there is a need to establish a new stock exchange in the country to improve service delivery in the secondary market by increasing competition among stock exchanges. Sebon officials said the study report would be submitted in the upcoming board meeting of the stock market regulator. If Sebon decides to establish a new stock exchange, it will end monopoly enjoyed by the state-owned Nepal Stock Exchange (Nepse). 

Global IME starts operation

KATHMANDU, JUL 10 -

Global IME Bank, the new entity formed by merging Global Bank, IME Financial Institution and Lord Buddha Finance, started operations on Monday. Global Bank is the first commercial bank to combine with two finance companies at the same time which has strengthened its financial muscle.

According to the bank, its paid-up capital has reached Rs 2.18 billion, deposits Rs 26 billion and credit Rs 20 billion after the three financial institutions came together. It has also issued debentures worth Rs 500 million to expand its capital. Following the merger, the number of branches has expanded to 62 and it has a presence in 13 out of the 14 zones in the country.

Inaugurating the merged entity, Prime Minster Baburam Bhattarai said that the government was committed to giving the private sector a key role in the country’s economic development. He claimed that the investment climate was improving despite a protracted political transition. Stressing the need to better utilise the massive amount of money entering the country as remittance, the prime minister asked the newly merged bank to use its expertise in the remittance business to make use of this resource more effectively.

Source: ekantipur

Machhapuchchhre, Standard Finance to operate as merged entity from today

KATHMANDU, July 9: The consolidated unit of Machhapuchchhre Bank and Standard Finance Limited will officially start providing banking services from Monday. The merged entity, which will have a paid-up capital of Rs 2.47 billion, will be known as Machhapuchchhre Bank Limited.

“The decision to merge the two units was made keeping in view the long-term business strategy of both the institutions,” Surya Bahadur KC, chairman of the bank, told a press conference organized in Kathmandu on Sunday.

The merger, dubbed the biggest in the country´s banking history, is expected to benefit Machhapuchchhre the most, as the category ´A´ financial institution, which was struggling to expand its business operations due to huge chunk of bad debts, has received a much needed capital injection from the consolidation process.

Janata Bank's IPO from April 29

KATHMANDU: Janata Bank is floating its 60 million units of ordinary shares worth Rs 600 million — the largest Initial Public Offering (IPO) among private commercial banks — at a face value of Rs 100 per unit to the public from April 29.

The capital market is going to see the primary issue of a commercial bank after almost two years. The capital market regulator has already approved the 27th commercial bank’s IPO which will be closed on May 3, if oversubscribed, according to the bank that will continue its primary issue till May 13, if the shares are not fully subscribed within five days. The public can submit the forms at 130 collection counters including 23 branches. Citizen Investment Trust (CIT), NMB Capital and Civil Capital have been appointed as the underwriter and the issue manager of the primary issue.

Source: the himalayan times

Central bank sends United to liquidation

KATHMANDU: The central bank has sent the troubled United Development Bank to liquidation and upgraded Pokhara-based Annapurna Finance to a class ‘B’ development bank. The Bara-based development bank was under scanner of the central bank. On January 5, Nepal Rastra Bank (NRB) had decided to liquidate it after it failed to improve despite NRB’s repeated prescriptions. The development bank was declared ‘troubled financial institution’ in March, 2011 after a NRB study revealed a sharp deterioration in its financial health, mainly due to heavy embezzlement of funds by its promoters.

Sebon asks National Hydro to hold AGM

KATHMANDU, MAR 29: 

The Securities Board of Nepal (Sebon) has ordered National Hydropower Company to hold its annual general meeting (AGM) within a month. Public shareholders of the hydropower company have sought the regulator’s support to pressurise the company to conduct its AGM which has not been held for the last three years. “Sebon has directed the company to hold its AGM for fiscal year 2009-10 within mid-April,” informed one of the directors of the company elected amongst public shareholders Prakash Rajoria.

Margin lending could boost market

KATHMANDU: The decrease in the amount of loans floated by financial institutions against shares has indicated an urgent need to allow brokers to issue margin loans to investors to stimulate the market. Margin lending by financial institutions against a collateral of non-government securities has gone down by 20 per cent by the second quarter of the current fiscal year. 

The benchmark index has shed 20 per cent since the beginning of the current fiscal year as stock prices are simmering at the lowest levels. In mid-July, banks had floated loans worth Rs 8.4 billion under the heading which is down to Rs 7.4 billion by mid-January. 

Nepal to organise Economic Summit Development Forum

KATHMANDU: The government is planning to hold an Economic Summit and Nepal Development Forum meet soon.Addressing the Asian Development Fund (ADF) meeting organised by the Asian Development Bank (ADB) in Manila, finance secretary Krishna Hari Baskota said that Nepal is preparing for both the meetings in the near future.

“The country has been fully utilising foreign aid,” he added.

The donors, however, urged all the aid recipient countries to become independent as in the long run only foreign aid will not help develop any country.The donors also asked the aid recipient countries to improve their performance and check corruption to fully utilise foreign aid. Some 30 donors — including South Korea which has become a donor from an aid recipient country — took part in the meeting, where the donors pledged to provide $12 billion to the Asian Development Fund in the next four years.