::: Latest Buzz on Nepalsharemarket

Wednesday, March 31, 2010

Nepal Telecom (NT) decides 35% cash dividend


The second annual general meeting (AGM) of Nepal Doorsanchar Company Ltd ¿ popularly known as Nepal Telecom (NT) ¿ has decided to distribute 35 per cent cash dividends to its shareholders here today. The company has, last fiscal year, registered Rs 10.18 billion net profit ¿ an increase by 31 per cent over last year's turnover, said the company.

"The per share income has also increased to Rs 67.85 that is also an increase of 28 per cent," said the NT, which has been listed under the Class-A companies at the Nepal Stock Exchange (Nepse). "NT's teledensity has increased to 17.84 telephone lines per 100 persons," Sushil Ghimire, NT chairman said, addressing the shareholders. "We have extended our PSTN (land line) services in all the 75 districts headquarters," he said, adding that GSM and CDMA service of NT is also available across the country.

Registered on 2060-10-22 under Company Act, 2053, the then Nepal Telecommunications Corporation (NTC) was dissolved and all assets and liabilities were transferred to Nepal Telecom (NT) with effect from April 13, 2004. The company had floated its shares under the divestment programme of the government and called the bid for its shares quoting Rs 600 minimum after adding Rs 500 premium to the face value of Rs 100 for each unit. However, investors have quoted a maximum of Rs 2,550 to the lowest of Rs 600 for a unit of share.

As part of the disinvestment and privatization plan, the government had sold NT's 10 per cent shares ¿ five per cent to the public and five per cent to the staff. The staffs were offered the shares at a subsidized rate of Rs 90 per unit. The NT, according to the Finance Ministry's divestment plan, floated 75,00,000-unit of shares ¿ that is five per cent of the total ¿ in the first phase to the public.

However, due to various reasons, it was under-subscribed to only above 53,00,000-unit shares. Last year, in the first AGM, it had distributed 25 per cent cash dividends. But with increasing profits, NT has decided to disburse 35 per cent cash dividend this year.


Source:
THT

Sunday, March 28, 2010

Sunrise reaches Udaypur's Jaljal


Sunrise Bank Limited has opened its 28th branch in Udaypur's Jaljale. This bank has been opened to cater the small and medium enterprises. The bank has so far able to collect a total deposit worth Rs. 13.76 billion while its loan portfolio stands at Rs. 12.20. There are 30 ATM counters being run by the bank all over the nation.


Source:
ekantipur.com

New banks to come with a bang


With the banking system facing a liquidity crunch and the central bank tightening lending in the real estate sector, upcoming banks say they will come have to come up with new strategies to tackle the situation. While the existing banks are finding it hard to attract deposits, the new banks will have to make extra efforts to get an entry into the market.

According to NRB, the liquidity situation is improving as is evident with the inter-banking lending decreasing to six percent and subscription of repo (NRB injecting money against treasury bills of banks) issued by NRB standing at just Rs. 4.96 billion against the offer of Rs. 9 billion.

The existing situation prompted upcoming Civil Bank to adjourn its plan to start operations by April-May to the new fiscal year that begins in Mid-July. Civil Bank's CEO Kishor Maharjan said the plan of launching operations was differed as the bank didn't want to produce a balance sheet reflecting losses as a result of a bad market situation.

Banks CEOs will be under pressure for performance. High ranking officials of the upcoming banks admitted that it was a tough time to start new banks. But, they were also convinced that their new strategies would work. Maharjan said that they could learn a lot from current crisis and they could take appropriate policies without fear to reduce lending to the real estate sector and maintaining credit and deposit (C/D) ratio as directed by NRB.

Former CEO of Sunrise Bank said his bank plans to introduce attractive deposit schemes with competitive interest rates and efficient services for customers. Anil Shah, CEO of upcoming Megha Bank said his bank would offer highly sophisticated ' five start banking' services to customers. "We may increase operating hours, offer door-step banking and provide more efficient service while providing loans to customers," he said. "Being a new bank, we will have to offer competitive interest rates as well to attract depositors."

Of course, there will be big challenges for new banks to attract depositors. "But, one advantage for us is that we will be able to get deposits and provide credit at higher interest rates and we will save on adjustment costs of old loans as in the case of old banks," the former CEO of Nabil Bank said. The Megha is planning to start banking transaction within mid-May.

Likewise, CEO of Century Bank Ganesh Kumar Shrestha said that the bank's approach would be to provide door to door service to the customers to attract deposits and lend. "Another strategy will be to keep spread rate low offering better interest rates for both depositors and loan borrowers," he said. Century is planning to start operations within the next 2-3 months. "We will probably start banking transactions from the new fiscal year," Shrestha said.

Commerz and Trust Bank CEO Anal Bhattarai said his bank would address the liquidity crunch through 'product diversification' while declining to clarify what it meant. He said that the ongoing crisis was a lesson for upcoming banks and they have a chance to make appropriate preparations to tackle the situation.

Janata Bank is also in the final process of getting operating license. A senior official of the bank said they would not go with ambitious targets but move ahead carefully. "We will have to collect deposit in a competitive market and we are ready for that."Deputy Governor Bir Bikram Rayamajhi is also positive about the new entrants as they will not have to face acute shortage of liquidity due to paid up capital at least Rs. 2 billion.


Source:
ekantipur.com

Wednesday, March 17, 2010

Face value of listed shares up four fold in five years


Face value of listed shares in Nepal Stock Exchange (Nepse) has jumped by four times in five years, thanks to the rise in the number of Initial Public Offerings (IPOs) and issues of rights and bonus shares by banks and financial institutions to raise their capital base.

According to Nepse - the sole secondary market in the country, total face value -- paid up value of shares -- shot up to Rs 61.14 billion during the fiscal year 2008/09 from Rs 12.01 billion recorded in 2003/04. Similarly, the total number of listed shares in Nepse rose to 637.8 million units in fiscal year 2008/09 from Rs 243.5 million units recorded in 2006/07.

Securities Board of Nepal (SEBON) - the capital market regulator -- had given permission to issue ordinary shares and rights shares worth Rs 8.56 billion to different companies till mid-March 2010. A total of 18 companies have been allowed to issue ordinary shares worth Rs 2.4 billion whereas 20 companies are permitted to issue rights shares worth Rs 6.52 billion.

As of mid-March, 16 more companies have sought permission from SEBON to issue public shares worth Rs 6.31 billion and 12 companies have approached the capital market regulator for issuing rights shares worth Rs 409.4 million. Share analysts have suggested authorities concerned to raise the number of investors by expanding internet based trading system to deal with the increasing flow of shares in the secondary market.

"We have to adopt modern technology in share trading so that more and more investors can be encouraged in share investment," said Nanda Kishore Mundada, president of Nepal Stock Brokers´ Association. He also suggested increasing foreign investment in the secondary market by attracting non-resident Nepalis and overseas investors.

Investors have suggested authorities concerned to introduce a provision for easy and hassle free loan so as to encourage more investment in the secondary market, which has been flooded with new rights and bonus issues in recent years. "Rising volume of shares won´t be a problem in the market if there is guarantee of bank loans to invest in shares," said Nirmal Pradhan, a stock investor.

Last year, 63 companies had received permission to issue ordinary and rights shares worth Rs 14.83 billion. As per the directives of Nepal Rastra Bank, banks and financial institutions must raise their paid-up capital base to Rs 2 billion by 2013/14.


Source:
myrepublica.com

Sanima Bikas Bank opens branch in Bhandara


Sanima Bikas Bank Ltd has opened a new branch at Bhandara in Chitwan. With the opening of Bhandara branch, the number of branches in the bank´s network has reached 12.

Sanima has now proved its commitment to make their baking services more accessible and reachable to the customers, the bank said in a statement on Tuesday. The bank also has four ATM kiosks in Nagpokhari, Chuchchepati, Suryabinayak and Pokhara.

The bank is in the process of upgrading itself into a ´A´ class commercial bank in the country, according to the statement.


Source:
myrepublica.com

Everest Insurance to give 20% Dividend


Everest Insurance Company (EIC) ¿ during its 14th and 15th annual general meeting (AGM) on Tuesday ¿ has decided to distribute 20 per cent cash dividend to the shareholders from its profits. "In spite of the unfavorable conditions in the country, the company has successful posted a huge profit.

"It is the first among non-life insurance companies to collect Rs 449.8 million premium during the last fiscal years," said the company adding that in this fiscal year's nine months it has already collected Rs 455.2 million as premium that 45.25 per cent higher than the premium collection of the same period in the last fiscal year, said the company


Source:
THT

Thursday, March 11, 2010

7lakh shares of NMB Bank as Further Public Offering.

NMB Bank Ltd is issuing 715000 units of share as Further Public Offering at face value of Rs.320 from 19 March ( 2066 Chaitra 6 ).

Thursday, March 4, 2010

IPO of Gaurishankar Dev. Bank from 15 MARCH

Gaurishankar Dev. Bank is issuing 6lakh units of share at face value of Rs.100 from 15 to 18 March ( 2066 Chaitra 2 to 5).

Wednesday, March 3, 2010

10 percent Bonus Shares of Infrastructure Dev. Bank

Infrastructure Dev. Bank has decided to give 10 percent Bonus Shares worth Rs.32 million & 5 percent dividend worth Rs.1.6 million to its shareholders, subject to approval by annual general meeting.