New NIC branch at Gaur in Rautahat

NIC Bank opened its 28th branch at Gaur in the Rautahat district. The branch will provide all the modern banking facilities including Internet banking. The bank also announced a cash dividend of 26.32 per cent for the year 2009-10, subject to approval of Nepal Rastra Bank (NRB) and the bank's Annual General Meeting. The bank posted a net profit of Rs 450 million for the year and a growth of 42 per cent, compared to the previous year. The bank has a customer base of over 100,000 and has installed 25 ATMs in the country.

Source:
tht

12.5% Bonus Shares & 5% Dividend Declared by Nepal SBI Bank

Nepal SBI Bank, on its 264th Board Meeting, has declared dividend of 12.5 bonus shares per 100 shares plus 5 percent cash dividend for FY 2066-67. Additionally, the meeting approved the bank's financials and the appropriation for the year.

As per the approved financial statements, Nepal SBI Bank earned operating profit of Rs. 57.3 Crores, a growth of 28.92 percent from total deposit mobilization of Rs. 34.90 billion and disbursement of Rs. 17.96 billion as loans and advances. The bank posted after tax profit of 39.17 Crores during the review year.

The Board has also decided to submitted the proposed divided to the Nepal Rastra Bank for approval to place as agenda for upcoming 17th Annual General Meeting of the Bank.

Source:
Jamb News Service

10% Bonus Share & 37% Cash Divided: Arun Valley Hydropower

Share trading of Arun Valley Hydropower Development Co. Ltd has been resumed while the BOD meeting of the company dated 2067/06/03 has decided to give 10% bonus share and 37% cash dividend.

Source:
nepalstock.com

CDS facilitates electronic share ownership

The Central Depository System regulation went into effect Wednesday paving the way for the establishment of CDS companies. The Securities Board of Nepal, which recently endorsed the regulation, will be implementing it. "With the opening of CDS companies, share ownership transfers will be done electronically instead of manually as is being done presently," said SEBON. As the CDS facilitates electronic record keeping of the data related to the listed companies and their stock besides the accounts of the shareholders, ownership transfer and share trading can be done in a flash.

Although the Nepal Stock Exchange automated trading on Aug. 24, 2007, the clearance and settlement of transactions are still being done manually. "If things go smoothly, the CDS company will come into full-fledged operation within this fiscal year," said Surbir Poudel. "It will not take much time as the process of establishing the company was progressing simultaneously with the CDS regulation." SEBON and NEPSE are working to establish the CDS system with the technical assistance of Central Depository Services India Limited. NEPSE will be a major stakeholder in the company along with the listed companies and security traders (merchant banks and stockbrokers). As per the regulation, the stock exchange, commercial banks, citizen investment trust, foreign institutional investors, non-banking financial institutions, depository participants and firms referred by SEBON with a minimum net worth of Rs. 200 million can hold shares in the CDS company. According to a NEPSE official, NEPSE has agreed in principle with eight prominent commercial banks and the Citizen Investment Trust to promote a CDS company. A draft of the memorandum of association and the articles of association of the proposed company has already been prepared, added the official.

Source:
ekantipur

Machhapuchhre Bank enters 11th year

Machhapuchhre Bank Ltd (MBL) on Sunday celebrated successful completion of its 10 years of operations. According to a press release, till October 1 the bank has posted an operating profit of Rs 86.6 million whereas it has registered a total deposit of Rs 18.44 billion and floated Rs 15.24 billion loans. It has a total paid up capital of Rs 1.47 billion. The bank has a total 39 branch offices, 51 ATMs and about 1.75 lakh customers till date, it said.

Source:
tht

DCBL Bank Ltd bonus shares

DCBL Bank Ltd has decided to distribute 10 per cent bonus shares and 0.53 per cent cash dividend to its shareholders. The decision has to be endorsed by Nepal Rastra Bank and AGM of the bank. The bank earned a net profit of Rs 158.3 million in 2009-10. It has 12 branches and plans to have 20 more branches, said the bank.
Source:
tht

Annapurna Finance donates Rs 50,000

On the occasion of its seventeenth anniversary, Annapurna Finance Company donated Rs 50,000 to Lions Club for the construction of blood collection centre. Issuing a press statement, the company said that the money was handed over by Krishnaraj Lamichhane, the chief executive officer (CEO) of the company to the Lions Club. The company also expressed its commitment towards the continuation of CSR (corporate social responsibility) activities in the future as well. According to the statement, 20 employees from the company donated blood on the occasion.
Source:
myrepublica

Shangrila & Bageshwori dev banks eye merger, upgrade

Two regional development banks have lodged an application at Nepal Rastra Bank (NRB) for a merger, eyeing to upgrade into a national-level development bank. Shangrila Development Bank, based in Pokhara, and Bageshwori Development Bank in Nepalgunj, have recently sought the central bank´s nod for the merger. If the central bank endorsed and the two companies managed to steer the process of merger smoothly, they will become the first development banks to merge. "Board of directors of both the development banks have already endorsed the merger proposal and lodged application as well," said an official at NRB. In their letters to the central bank, they have said that they will take steps towards merger as well as upgrading simultaneously.

For merger, the companies will have to satisfy their promoters and shareholders and define how it will reconcile them in relation to assets and liabilities. It will largely depend on how the banks manage the details internally. To be upgraded into national-level development bank, the two banks need to raise their paid-up capital to Rs 640 million, among others. "The financials of the banks are almost similar and also fine enough to satisfy the central bank. How will they raise the paid-up capital is our matter of interest nonetheless," said the source.

Currently, the paid-up capital of Shangrila Development Bank stands at Rs 79.80 million and that of Bageshwori Development Bank is Rs 69.795 million. Even if they merged, they will together need to re-inject more than Rs 490 million for upgrading into a national-level development bank. To attain that, the companies have unveiled a plan to expedite public issue. But given that IPO alone will not suffice them to raise their capital to Rs 320 million each, both have planned rights issue as well.

So far the two banks have not finalized the possible name of the merged bank. They have also not worked out the structure of the new board. One of the ticklish questions as to who will lead the board and how the directors of two banks will represent in the new structure, remains to be seen. "To sort these issues and resolve possible differences, the boards of these two banks consented at taking decisions through joint meetings," said the source.

Knowledgeable sources said that the two banks took steps for merger especially as a significant chunk of their promoters belong to same groups. For instance, former Chairman of Bageshwori Development Bank Bishwas Gauchan is presently the Chairman of Shangrila Development Bank. Although the central bank has long been suggesting the banks and financial institutions to merge to gain strength and deepen their presence in the market, so far the country has only one success story of National Finance and Narayani Finance to cite. These two finance companies had merged into Narayani National Finance more than a year ago. Five other finance companies operating in different parts of the country too had announced the merger, albeit leading to a failure. At the commercial bank level, Everest Bank Limited and Nepal Investment Bank Limited had recently taken initiative to explore the possibilities of merger but soon announced that the understanding has terminated.
Source:
myrepublica

Paschimanchal Finance Company at New Road

Paschimanchal Finance Company has opened its eighth branch in New Road. The finance company established in 1995 in Butwal has its branches at Kathmandu, Myagdi, Palpa and Syangja. The company has been able to collect deposits worth Rs 1.08 billion and floated loans worth Rs 1 billion in fiscal year 2009-10.
Source:
Tht

Narayani National Finance profit at Rs 122 million

Narayani National Finance (NNF) that was created by merging Narayani Finance and National Finance last year, has posted Rs 122 million as operating profit for 2009-10. The merged company collected Rs 1.65 billion in deposits and floated loans worth Rs 1.165 million in the same period. It has been able to reduce its nonperforming loans to less than one per cent. The finance company has now 4 branches in Kathmandu and three in Chitwan and one in Sunsari, Biratnagar and Myanglung. The company has started any branch banking services and will soon start ATM service. The company has also issued rights shares to increase its capital base.
Source:
Tht