NEPSE down 0.77 point

The Nepal Stock Exchange (NEPSE) went back down Thursday dropping 0.77 points to close at 681.54. Thursday's trading session saw the banking sector, a major component of the secondary market, declining by 2.51 points while the finance sector lost 1.32 points. Among the leading sub-indices on NEPSE, the hydropower sector gained 7.12 points while the development bank sector, hotel sector and insurance sector increased by 4.54 points, 2.9 points and 0.2 point respectively. Total transactions on NEPSE reached Rs. 93.996 million with 130,129 units of shares being traded. Shares of 68 companies changed hands on NEPSE.Among the 22 commercial banks whose shares were traded on NEPSE on Thursday, the Bank of Kathmandu posted the biggest growth with its stock rising 76 points while Nabil Bank lost the most on the trading floor by shedding 100 points. Similarly, among the 15 development banks, Gurkha Development Bank witnessed the highest increase of 27 points while Ace Development Bank Limited lost 4 points.Among the 22 finance companies, World Merchant Bank Ltd was the highest gainer with an increase of 47 points.
Source: Kantipur

NEPSE pulls out of dive

KATHMANDU, Aug 27 - After a seven-day downhill run, the Nepal Stock Exchange (NEPSE) turned around with a 3.44 point gain on Wednesday.
The secondary market went up after Security Board of Nepal (SEBON) failed to pass the proposal on conversion of 19 percent promoter shares to ordinary shares. The board meeting of SEBON was supposed to discuss this proposal on Tuesday but the meeting was cancelled due to protest.
"This won't be decided immediately," said Surbir Poudel, chairman of SEBON. "We'll move ahead after discussing it with Nepal Rastra Bank in due course of time."
There was apprehension among the investors that conversion of promoter shares to ordinary shares would trigger a huge flow of shares in the secondary market, which in turn would push the price further down. The sub-indices on NEPSE showed a mixed result as three of them gained while two lost on Wednesday. Among the sub-indices, the banking sector was the highest gainer by increasing 3.44 point followed by the development bank and finance sectors which gained 0.15 and 0.41 point respectively.
The share market witnessed a total turnover of Rs. 114.77 million with 150,247 shares being traded.
Among the 20 commercial banks listed on NEPSE, Nabil Bank posted the biggest growth with its stock rising by 240 points while Nepal Investment Bank lost the most on the trading floor by shedding 75 points.
Among the 16 development banks whose shares were traded on NEPSE on Wednesday, Pashupati Development Bank witnessed the highest increase of 33 points while Annapurna Bikas Bank dropped 23 points. Similarly among the 12 finance companies on NEPSE, Kuber Merchant Bittiya Sanstha was the highest gainer with an increase of 14 points in its share price. Lumbini Finance lost 10 points. - Kantipur Report

Nepse drops over low cash dividend

KATHMANDU, Aug 25: Announcement of nominal cash dividend by Nepal Investment Bank Ltd (NIBL) triggered further loss in already slowing Nepal Stock Exchange (Nepse) index. The Nepse, the indicator of investors´ confidence in stock market, shed 2.09 percent or 14.47 points to close at 678.87 points at the end of Tuesday´s trading. “Meager cash dividend of Rs 20 per share announced by NIBL has discouraged investors and spurred selling pressure in the secondary market on Tuesday. The announcement also sent negative message to investors of other companies,” Nanda Kishore Mundada, president of Nepal Stock Brokers Association told myrepublica.com. Price of NIBL´s per unit share dropped by 114 to Rs 1035 on Tuesday.Mundada also said rumor of Securities Board of Nepal (Sebon) permitting promoters to lower their equity participation by selling 19 percent of total shares also contributed to the decline. “If permission is given to sell promoter shares, number of share would be doubled in the secondary market, resulting in overflow of shares in the secondary market,” said Mundada.Banking group, a key trading group in stock market, saw its sub-index dropped by a whopping 23.42 points to close at 707.82 points. The slump in Banking group´s sub-index was contributed by the decline in share prices of major banks such as NIBL, Nabil, Standard Chartered and Kumari Bank. Similarly, Development Bank and Finance groups´ sub-indices also wend down by 0.58 points and 5.89 points to end at 703.15 points and 868.77 points respectively. Insurance and Others group also saw their sub-indices dip by 1.66 points and 8.22 points to close at 640.29 points and 649.72 points respectively.Total turnover of stocks declined to Rs 86. 36 million with 123,722 units of shares and 55 scripts being traded through 964 transactions during Monday´s trading. Total market capitalization also dropped to Rs 471.49 billion, down from Rs 481.55 billion recorded on Monday. - REPUBLICA

Shine bank in profit

KATHMANDU : Shine Development Bank has earned a net profit of Rs 581,000 in five months of its establishment.The class ´B´ development bank based in Butwal has collected a deposit worth Rs 314.9 million and disbursed loan of Rs 237.6 million during the period, states a press release issued on Tuesday.The bank has also opened a branch in Sandhikharka, district headquarters of Arghakhanchi.

Malika gives aid

KATHMANDU: Malika Vikas Bank granted a relief fund of Rs 3,21,370.37 to the Prime Minister’s Relief Fund to assist people suffering in Mid-western Development Region and Far-western Development Region. According to a press statement, acting president of the bank Jhapat Bora contributed a relief fund of Rs 1,11,111. — HNS

Siddhartha Bank installs 3 more ATMs

KATHMANDU, Aug 13: Siddhartha Development Bank has installed three automated teller machines (ATMs) in its branch offices
located in Saljhandi, Khaireni and Bardaghat. These kiosks came into operation from Wednesday, says a press statement issued
by the bank.
The bank currently has eight branches, all of which are furnished with ATMs. The bank, which generated a net profit of Rs 36
million in the last fiscal year, has so far collected Rs 1.90 billion of deposits and invested Rs 1.70 billion on loans.

NRB revoked ban on United Bikas Bank

KATHMANDU: NRB revoked the ban imposed on United Bikas Bank on deposit collection and lending. NRB banned the bank from collecting deposits and lending on November 18, 2006 under NRB Act section 86 (b). “New investors injected capital into the bank, bringing the capital fund of the bank up to the minimum requirement,” the central bank said. — HNS

Bid to revive sick NDB

KATHMANDU: Two groups have submitted proposals to investigation officer TR Upadhyaya to revive troubled Nepal Development Bank (NDB).Nimbus Group of Jagdish Agrawal alongwith World Link, ICTC Group, Golchha Group, Kailash Chandra Goyal, Ravi Singh Group, Guna Chandra Bista and others have submitted one proposal. Badri Bhattarai, the current promoter of NDB, and his group have submitted another proposal.
“After investigation, we found that NDB has Rs 90 million cash but the deposits of the public — except organisations — come to around Rs 350 million,” said Upadhyaya whom Patan Appellate Court on July 29 appointed the investigation officer to report and start the insolvency process.The Court has ordered that small depositors be paid first.
“If Rs 90 million is distributed among the public depositors, they will one get just one-fourth of their real deposit,” he said adding that the definition of small depositors was unclear.“Revival of the troubled bank might be the best option,” he said adding that he has called both the groups to discuss their detailed capital plan.
“After meeting both the groups and discussing their proposals in detail, if I am convinced I will advise the court to revive the bank,” Upadhyaya added.Nimbus Group and its associates are ready to deposit Rs 32 million as and when Nepal Rastra Bank asks and also to prepare a capital plan within three months.“We are planning to inject Rs 320 million after detailed study,” said Sudarshan Raj Pandey, a representative of the group that also plans to buy out the promoters who are responsible for damaging the bank.
“We wil buy the shares of the promoters responsible for damage to the bank at one rupee per share and buy them out,” he said adding that after that they plan to issue rights shares to increase the capital to Rs 640 million by the end of 2010.If the rights shares are not sold completely, we will buy them,” Pandey said assuring the depositors that if they want to take their deposit back after Nimbus starts running the bank, they will be allowed to do so.The other group led by Badri Bhattarai has claimed that it is ready to inject Rs 640 million but has not elaborated its plan.
Meanwhile, the Supreme Court has declined to issue a stay order as demanded by the Employees’ Provident Fund (EPF) to protect its deposit in the process of liquidating NDB.Directing to return the deposit of the small depositors first, Patan Appellate Court had okayed the liquidation of NDB. The court has directed to start the process of liquidation as per the Insolvency Act 2007.

Biratlaxmi Development Bank in Budhabare.

BIRATNAGAR, Aug 10: Biratlaxmi Development Bank, the first regional-level development bank of the eastern region, has opened its new branch in Budhabare of Jhapa district. This is the fifth branch of the bank. Inaugurating the branch, its executive chairman Prabhu Prasad Parajuli stated that the new branch was established as a part of the bank´s drive to expand network aimed at providing modern banking facilities to the people in urban as well as rural areas of the region.Biratlaxmi, which was established about five years ago, has its head office in Biratnagar. The bank has student savings, senior citizens savings, grihalaxmi savings, share transactions savings and special savings accounts, among others, pledging interest return of 6.75 percent interest per annum.

Udhyam Bikas Bank (UBB) registered Rs 19.4 million profit.

KATHMANDU: Udhyam Bikas Bank (UBB) has registered an operating profit of Rs 19.4 million. According to a press release, the total deposit collection of the bank has touched Rs 102.4 million. The development bank is also planning to float shares among the public soon. — HNS

Vibor Bank's Share Allotment Result

The general shares of Vibor Bikas Bank Ltd. are going to be allotted today on 2nd August 2009 (2066 Shrawan 18). NMB, the issue manager, along with the Vibor Bank authoratives have just arrived at Hotel Annapurna, Durbar Marg. They are planning to reveal the result today.The result will be published soon. So keep on watching the website.Till now Vibor Bikas Bank's share allotment model has been obtained.
DOWNLOAD VIVOR SHARE ALLOTMENT MODEL

The Bank IPO was oversubscribed nearly 5 times. Vibor Bikas Bank Ltd issued 26,52,000 shares as initial public offering from 10th june 2009 (2066 Jestha 27th). Vibor Bikas Bank Limited (VIBOR), a national level category B financial institution licensed from Nepal Rastra Bank (the central bank of Nepal), commenced its operation from October 4, 2007. VIBOR is promoted by non-interfering, trusting, and open-minded 135 people coming from diverse background. Collectively, the promoters hold 61 percent of the total capital of Rs. 680 million. However, no individual promoter holds more than 3%, the average shareholding is 0.45% and the standard deviation 0.46%. Remaining 39% will be sold to general public. (Courtesy: NEPSEGuide)

5 finance institutions ready for merger

The merger of five financial institutions, which have been permitted by the Nepal Rastra Bank, has reached final stage.
Himchuli Development Bank of Pokhara, Mahalaxmi Finance of Birgunj, Butwal Finance of Butwal and Siddhartha Finance of Bhairahawa have been permitted to merge with each other.The financial institutions have applied for upgrade by presenting Rs 2.1 billion paid capital. All process for the merger has been completed and documents have been sent to NRB for final approval, said Himchuli Development Bank's chairman Sushil Raj Parajuli.
The details of all institutions have been received to issue rights shares for merger, he said. He said rights sharea will be issued soon and the merger process will complete by Dashain. Each of the institute will contribute Rs 420 million.
Kantipur report

Excel Development Bank: Right Share Issue Closing

Excel Development Bank Ltd. is closing its extended right share issue date on 23 Shrawan 2066 (7th Aug 2009)

Sewa Bikash Bank: 4th Quarter Financial Report (2065/66)

Sewa Bikash Bank Ltd. has posted Rs. 10.039 million net profit (unaudited figure) for the 4th quarter of fiscal year 2065/66

AC appoints Upadhyaya to report on NDB

KATHMANDU, July 29: The Appellate Court (AC) on Wednesday appointed chartered accountant Tirtha Raj Upadhyaya to reassess the financial status of Nepal Development Bank (NDB) and submit a report to the court within three months in order to facilitate it take decision on Nepal Rastra Bank´s (NRB´s) petition, which seeks permission to liquidate the bank. “This has pushed the court decision for next three months,” Netra Acharya, lawyer at the central bank, told myrepublica.com. The committee has no authority to take any decision, but is entrusted only to report its findings and suggestions to the court after going through the reports and talking with the officials of the NRB as well as the troubled bank. The court will look into its finding while deciding on whether to grant permission to NRB to liquidate the bank.NRB had lodged a petition at the Appellate Court in June after its June 2 board meeting of the central bank decided to send the long-troubled NDB into liquidation, concluding that all its five-year long effort to revive the bank failed owing to incompetent and defiant management.The central bank has frozen all the transactions of the bank, including accounts maintained by the NDB at other financial institutions until the appointment of a liquidator. The central bank has concluded that there was no other alternative to liquidating NDB.

Public Development Bank (PDB) Profits

KATHMANDU: Public Development Bank (PDB) gained operating profit of Rs 10 million in the fiscal year 2008-09. Issuing a press statement on Monday, the bank said that it collected Rs 742.2 million and invested Rs 704.5 million. After the allocation of Rs 9,17,000 in bonus, Rs 1.54 million in income tax the bank has gained net profit of Rs 7.61 million. — HNS