Commercial banks' Q2 NPA almost doubles

The Non-Performing Assets (NPA) of commercial banks seem to have almost doubled in the second quarter of the current fiscal year. According to the unaudited financial figures of the second quarter of the current fiscal year, the average ratio of NPA to the performing loans in the second quarter of the current fiscal year is at 0.88 per cent which was 0.48 per cent in the corresponding quarter of the previous fiscal year.

The slowdown in realty and housing sector can be accounted for the surge in NPA of the commercial banks this season. The bankers have been suggesting the central bank Nepal Rastra Bank (NRB) to relax the ceiling on housing and real estate lending, citing the slowdown in realty to have affected the performance of banks as most of the commercial banks' loan portfolio is dominated by these sectors.

Among the unaudited financial statements released by the twelve commercial banks Bank of Asia Nepal (BoAN), Kumari Bank Ltd (KBL), Kist Bank Ltd (KIST), Siddhartha Bank Ltd (SBL), Global Bank Ltd (GBL), Laxmi Bank Ltd (LBL), Citizens International Bank Ltd (CZBL) and Prime Bank Ltd (PBL) are the commercial banks expected to report an increased NPA for the second quarter in comparison to that of corresponding quarter in the previous fiscal year. Standard Chartered Bank (SCBL), Nepal SBI Bank (SBI) and DCBL Bank Ltd (DCBL) are expected to report a drop in NPA in the review.

NPAs are one of the key indicators that gauge the financial strength of any bank or financial institution. NPAs for banks are nothing but loans gone sour. It is a loan that can not be recovered from the customer within stipulated time, especially those exceeding 90 days of the predetermined period. The NPA does not yield any income to the banks in the form of principal and interest payments. NPAs eat into the income of the financial institutions as the primary source of income of financial institutions are the interest payments by borrowers.

Source:
tht

Citizens Bank provides Cricket Kit

Citizens Bank International has provided Nepal Cricket Association-Bardiya with cricket kit and dress as part of its corporate social responsibility (CSR). The bank that provides services to its 90,000 customers through its 26 branches across 12 zones of Nepal has plans to extend its service to all 14 zones of Nepal by the end of the current fiscal year, it said in a press release.

Source:
tht

Citizen Bank Branches to Cover 14 Zones

Citizen Bank International Limited (CZBIL) has decided to expand its branches in 14 zones of the country within the current fiscal year. The bank will install ATM and credit card service in all the branches, stated the press released by the bank. The bank which has more than 65 thousand customer has provided 10% cash dividend from the profit of fiscal year 2065/66. Similarly, the bank will provide 1:1 right share to augment its capital to Rs. 2 billion.

Source:
Jamb News Service

Companies eye to float 50m units of shares

A total of 23 companies have sought approval from Securities Board of Nepal (SEBON) - the capital market regulator - to issue over 47.5 million units of rights and ordinary shares worth over Rs 4.75 billion to increase their capital base. According to SEBON, nine finance companies, eight development banks, five commercial banks and a company from others group have lodged application for issuing shares. As per existing provision, companies have to get approval from SEBON and Nepal Rastra Bank, the central bank, for the rights issue, bonus and ordinary shares after a proposal to this effect is endorsed by general assembly of the companies.

Under the finance group, Investa Finance, Valley Finance, Capital Merchant Banking and Finance, Shubhalaxmi Finance, Siddhartha Finance, Suryadarshan Finance, Zenith Finance, Merchant Finance and Yeti Finance have sought permissions for issuing shares. Of them, five have sought approval for rights issue, while four have lodged applications for ordinary shares issue.

Similarly, Muktinath Bikash Bank, Sewa Bikash Bank, Nilgiri Bikash Bank, Western Development Bank, City Development Bank, Paschimanchal Development Bank, Subhechha Bikash Bank and Triveni Bikash Bank have also approached SEBON for approval. Five of them have approached SEBON for ordinary issue, while remaining three have sought permission for rights issue.

Likewise, Agriculture Development Bank, Kumari Bank, NMB Bank Ltd and Citizens Bank International have also registered their applications for rights as well as ordinary issue, whereas City Homes Ltd of others group has approached SEBON for initial public offering (IPO). Meanwhile, SEBON has already granted permission to 21 companies for issuing shares as of mid-November. They will together issue over 48.80 million units of ordinary shares and rights shares worth Rs 4880.26 million.

Seven of the companies getting approval are finance companies, while nine are development banks, three insurance companies and two commercial banks. Similarly, seven development banks have got nod from the SEBON to issue ordinary shares.

Share prices mostly go up in the market in response to the announcement of rights and bonus shares. However, share prices in the Nepal Stock Exchange has gone down sharply following the announcements as number of investors did not increase to the extent of the number of shares that entered into the market.

"Limited number of brokers and confinement of their services only to the Capital and lack of institutional investment in the share market have badly affected the development of share market," SEBON Chairman Surbir Paudel told myrepublica.com on Wednesday. "Because of this fact, most of the small investors have suggested us to convert promoters share into ordinary shares by not more than two percent a year."

Source:

myrepublica.com

Bearish regime on tough hold

The downward spiral at home equity market carries on with a further slump on Wednesday making it total of sixth consecutive decline. The market retraction was triggered by almost all of the sectors fronted by banking and insurance stocks. The benchmark Nepse index plummets 5.40 points or 0.91 percent to close at 585.04, its lowest close for more than 28 months.

Today, the market characterized with selling pressure, falling prices, low turnover and feeble investor confidence, said Pramod Karki, an investor in the stock market. Declining stocks outpaced more than twofold the advancing ones with 15 gainers and 42 losers at three hours trade where volume came to thinner of Rs. 30385763 compared to Rs. 53209728 turnover at the same time Tuesday.

Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 147.06, losing 1.41 points or 0.95 percent. 78 scrip Sensex consist, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. However, float Index an indicator of performance of ordinary shares in the market was down 0.39 points to 56.06.

Commercial banks experience the huge selling pressure that led its index to topple 7.60 points or 1.33 percent to 563.63. Citizens Bank (O: 683, H: 670, L: 635, C: 635), Himalayan Bank (O: 1480, H: 1488, L: 1425, C: 1430) plummets along with key banking stocks asStandard Chartered (-Rs. 51), Nabil Bank (-Rs. 31), Nepal SBI (-Rs. 10) along with others. Finance dropped down 2.90 points to 617.31 and insurance slid 1.31 points to end at 606.07.

Dragged down in scrip price of Nepal Telecom (Rs. 535, -Rs. 5) led others index to subtract 11.75 points or 1.84 percent. However, development bank rose marginal of 0.59 points to 647.80 and hydro edge up 6.02 points on positive demand of Chilime Hydropower (O: 1060, H: 1075, L: 1060, C: 1075).

Merely 63 companies registered their presence in the secondary market maintaining A-D ratio at 0.36. All in all 54727 shares traded today via 738 transactions to Rs. 30385763 turnover along with Rs.412370.06 million market capitalizations.

The top five standouts of the day are MFCL(9.89%), BLDBL( 5.56%), GFL( 4.44%), PRFL( 3.7%), RBS(1.99%).Whereas, CZBIL(-7.03%), MDBL(-3.75%), AFL( -3.58%), HBL( -3.38%), GFLK( -3.34%). comprised of the top five losers.

Financial Stocks Fronted Nepse Downhill

Jamb Daily News Service
Nepal Stock Exchange sagged down for second day in a row on Wednesday primarily led by financial stocks. Standard Chartered Bank (Rs. 3564, -10%) closed its book from 6th Oct. to 4th Nov. 09 for the purpose of having its Annual General Meeting on 4th Nov. 09. SCB, one of the leading commercial banks with spurring profit has proposed 50 % cash and 50% stock dividend to its shareholders. After week long Dashain holiday, Nepse had surged for consecutive two days however the gains were capped by two regular slumps in preceding days after SCB's book close.
The benchmark Nepse index plummets 5.32 points or 0.87 percent to 607.86, following yesterday's nosedived of 23.69 points or 3.72 percent. Nepali stock market is moving through deviant slump for months hammered by several gloomy news. Moreover, series of off-putting news as, ambiguous understanding of paid up capital provision on Monetary policies, floating of promoters share in the market, listing of dividend and right shares augmenting shares outstanding amid growing turmoil within political parties dented the growth of Stock market. However, fair profits by companies along with dividend declaration has provided hope for stock uphill, but investors were less concerned on profits and were throwing selling orders.
Dragged down in scrip prices of most of the financial stocks smashed the Sensitive index to 153.66, losing 2.14 points or 1.37 percent. 78 scrip Sensex consist, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. However, float Index an indicator of performance of ordinary shares in the market was up 1.50 points to 58.18.
Commercial banks which commands the titanic volume of trade at Nepal Stock Exchange plummets 11.38 points or 1.88 percent to 592.86, led by fall in price of SCB. Likewise, development bank slid 5.30 points or 0.80 percent to 661.24, finance dropped 0.51 points. However, rise in share price of Chilime Hydropower (Rs. 1046, +Rs. 21) escorted the hydro index to 821.57 adding 6.80 points , insurance index put on diminutive of 0.49 points while others added 1.18 points as price of Nepal Telecom increased by Rs. 2 to Rs. 550.
Merely 66 companies registered their presence in the secondary market with 25 gainers and 34 losers. The A-D ratio was maintained at 0.74. All in all 152892 shares traded today via 1059 transactions. Moreover, Rs. 69759919 turnover was realized along with Rs.426176.76 million market capitalizations. Nepal Bangladesh Bank accounted for huge turnover of Rs. 14,748,350 followed by Citizens Bank's Rs. 5,921,130 and SCB's Rs. 5,432,210. Yesterday, 163259 shares traded today via 695 transactions amounting to Rs. 60717850 turnover along with Rs.429904.86 million market capitalizations.
The top five standouts of the day are NMBF(4.49%), PFL( 3.8%), LGIL( 3.78%), KMBF( 2.48%), SIL(2.29%). Whereas, GFCLPO(-48.61%), SCB( -10%), NDEP( -5.67%), LFLC( -3.91%), HGI( -3.85%). comprised of the top five losers.

Longest nosedive yet for secondary market

Himalayan News Service
KATHMANDU: As expected, the books closing of financial institutions dragged Nepse down to the lowest yet in 2009.All key market propellors commercial banks, development banks, financial institutions and hydropower companies lost this week to pull Nepse by a whopping 55.61 points to 614.79 points from Sunday morning’s opening of 660.40 points.
The hotels sub-group that did not see its shares traded while manufacturing sub-group gained by 4.41 points to reach 438.35 points from Sunday morning’s opening of 433.94 points.
Unilever Nepal Ltd’s 10-unit shares that were traded at Rs 4,346 per unit making it dearer by Rs 85 per unit pushed up the manufacturing sub-group by 4.41 points.Unilever Nepal has recommended Rs 450 cash dividend Rs 400 normal dividend and Rs 50 as commemorative dividend on the occasion of the completion of its 15 years of commercial production in Nepal from the profit of the last fiscal year when it registered a RS 2625.8 million turnover. The company also posted Rs 444 million net profit (after tax). It registered Rs 482.29 Earning Per Share (EPS) and 64 per cent Return on Equity (RoE) in the fiscal year 2008-09.
Though the week started in the green, gaining 2.17 points to 662.57 points on Sunday, it plunged by a whopping 55.61 points during the week.
Currently, banks and financial instituions dominate the secondary market and two institutions Standard Chartered bank Nepal and Nabil Bank are dominant players in the movement of Nepse, putting the secondary market under ‘concentration’ risk. Nabil Bank’s books closing on Tuesday dragged Nepse down by 27.42 points but the bank topped the chart in terms of transaction amount with Rs 67.83 million. Standard Chartered Bank Nepal followed with Rs 58.42 million, and Bank of Kathmandu (with Rs 36.49 million), Standard Finance (with Rs 34.99 million) and Nepal SBI Bank (with Rs 18.36 million) managed to come in the top five slot, respectively. In terms of number of share units traded, Standard Finance topped the chart with 1,35,000-unit shares changing hands while in terms of number of transactions Citizens’ Bank International topped the chart with 407 transactions.
The transaction amount increased by 40.08 per cent to Rs 483.89 million against last week’s fall of 32.63 per cent. Group-A companies contributed 70.71 per cent as against last week’s 67.75 per cent whereas the 78-scrip sensitive index a barometer of Group-A companies lost a hefty 16.20 points to drop to 157.42 points.
The float index calculated on the basis of real transactions also slid down by 5.14 points to drop to 58.53 points from Sunday morning’s opening of 63.67 points.

NEPSE continues to slide

KATHMANDU, Aug 19 - The Nepal Stock Exchange (NEPSE) Tuesday fell by 0.66 point. All the sub-indices suffered a loss except for the development bank sector. The hydropower sector lost the most dropping 12.88 points followed by finance, banking and insurance.
The share market witnessed a total turnover of Rs. 91.39 million with 118,822 units of shares being traded. Shares of 67 companies changed hands on NEPSE.
Among the 22 commercial banks whose shares were traded on NEPSE on Tuesday, Everest Bank posted the biggest growth with its stock rising by 44 points while Standard Chartered Bank lost the most on the trading floor by shedding 73 points.
Similarly, among the 15 development banks, Swabhalambhan Bikas Bank witnessed the highest increase of 40 points.
Among the 25 finance companies, Kaski Finance was the highest loser shedding a whopping 570 points. The top five winners on NEPSE were Swabhalambhan Bikas Bank with a 6.06 percent rise in its stock price followed by World Merchant Bank, Machhapuchchhre Bank, Citizens Bank International and National Hydropower Company. - Kantipur Report