Book Closure and AGM : Lumbini Bank Limited

Lumbini Bank Limited has  decided to conduct its 12th Annual General Meeting to be held on 11 December 2009 (2066 Mangsir 26) at Udhyog Banijya Sangha, Narayanghad, Chitwan . The company has also announced book closure from 20th November to 11 December, 2009 (2066 Mangsir 5 to Mangsir 26).

Source:
Jamb News Service

Nepse rebounds along with higher Turnover

Nepal stock exchange gained on the opening day of week, Sunday after plunging for four straight sessions to around low of eight months. The psychology of general investor was haunted by fear on floating promoters¿ shares, political chaos and anxiety on government policies to guide the share market amid the dividend declaration by companies after the spurring profit of fiscal year 2065/66. However, the sole secondary market rebounded from earlier loss to add 2.55 points or 0.42 percent to 617.34 on higher turnover, but yet low for more than seven months.
The turnover at Nepse surged to Rs. 149.399 million with a motivating gain, boosted the outlook of investors to demand for more scrip in coming sessions. The general investor¿s outlook had followed by the bear crawl on fear of government policies to implement the Pan number for trade more than 1 million and disclosure of sources of fund for more than 2 million trades. Likewise, People were selling ahead of Dashain and Tihar to finance their festival even at the lower price, however on the other side some people holding optimistic outlook were buying the scrip.
The sectoral indexes traded at secondary market today witnessed mixed performance. Commercial bank, hydropower and others lead the gaining rally where as rest of the indexes plunged down. Commercial bank having its dominance in trade volume heaved up 2.23 points or 0.37 percent to close at 606.88, led by 9.79 percent rise in price of Lumbini bank (C:314, O: 286), SCB (O: 5039, H: 5197, C: 5089, Rs. +50), SBI (1591, Rs. +31) along with others. Others index rose 8.22 points or (+1.27%) to 653.24 on increase in scrip price of Nepal Telecom(O: 549, H: 558, C: 556). Hydro gained 6.45 points or 0.78 percent, however development bank slid 4.58 points to 665.41, finance plummet 1.14 points to 637.18 and insurance down 0.52 points.
The puff-up in demand of some scrip from commercial sector, hydro sector led domestic blue chip, 78 scrip sensitive index to settle at 157.68 adding 0.26 points or 0.17 percent. 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies are included in sensitive index. Similarly, float Index an indicator of performance of ordinary shares in the market rose 0.06 points to 58.59.
Merely 71 companies registered their presence in the secondary market with 27 gainers and 33 losers. The A-D ratio was maintained at .82. All in all 918185 shares traded today via 1152 transactions. Moreover, Rs. 149399738 turnover was realized along with Rs.429486.31 million market capitalizations. On Thursday, Rs. 108687911 turnover was realized from 180963 shares trade along with Rs.427711.92 million market capitalizations. The increase in volume of trade and turnover signifies that there are lots of buyers in the market having optimistic outlook at near term.
The top five standouts of the day are GFCLPO(260%), LUBL( 9.79%), PRFL( 5.81%), EFL( 5.35%), STFL(4.74%). Whereas, NCM(-7.56%), IMEFI(-6.83%), NCCB( -4.55%), IDBL( -4.51%), SDBL( -4.14%). comprised of the top five losers.

Banks drop in Non-Performing Loan

Kantipur Report
KATHMANDU, Sept 7 - The commercial banks are doing fine by and large in terms of reduction in their Non-Performing Loan (NPL) in the previous fiscal year, according to the central bank.
While 16 of the 25 banks witnessed a drop in their NPL, three saw it rising, states a recent report of Nepal Rastra Bank (NRB).
Financial institutions with NPL hovering below five percent are considered sound.
The NPL of Nabil, Machhapuchhre and Development Credit Bank Limited went up slightly but it is still manageable with Nabil having 0.8 percent at the lowest and Machhapuchhre with 2.8 percent at the highest.
The rise and fall of the NPL in case of Global Bank, Citizens Bank, Prime Bank, Sunrise Bank and Bank of Asia could not be assessed as they have not reported their their NPL status to the
central bank either in the last fiscal year or the previous year or both years.
NIC bank's NPL remained constant at 0.9 percent in both years.
NCC bank has been able to reduce its NPL significantly last year from 16.36 percent to 2.7 percent during the 12-month period.
Chief Executive Officer of NCC Bank Ratna Raj Bajracharya said recovery of loans from some major groups - including the N.B. group, which is also the promoter of the NCC bank - was the principal reason behind sharp decline in the NPL of NCC.
"The Harisiddhi Brick Factory owned by N.B Group itself had owed the bank five percent NPL," he said. "We acquired its lands as a part of recovery." The bank was to recover loans of Rs. 330 million from Harisiddhi.
The bank also acquired
the lands owned by Tribeni Distillery to recover around Rs. 60 million loans last year, Bajracharya said.
"We will reduce the NPL to one percent within the next six months," he said.
There are still five banks whose NPL level is higher than five percent: Nepal Bank Limited, Rastriya Banijya Bank, Nepal Bangladesh Bank, Lumbini Bank and Agriculture Development Bank.
RBB CEO Janardan Acharya said they would reduce the NBL below five percent within
the next two years. The government owned bank has still 15.7 percent NPL which represents
Rs. 4.9 billion.
"We have plans to recover around Rs. 2.5 billion this year and recovery of the remaining amount in the next year," he said. The bank recovered Rs. 2.4 billion in the last fiscal year.NPL Change in TOp 20 Banks
2007/08 2008/09
Bank NPL (%) NPL (%)
NBL 8.05 5.9
RBB 21.63 15.7
Nabil 0.79 0.8
NIBL 1.12 0.8
StanChart 0.92 0.7
HBL 2.36 2.2
NSBI 3.65 2.0
NBBL 31.11 19.3
Everest 0.64 0.5
BoK 1.76 1.3
NCC 16.36 2.7
NIC 0.90 0.9
Lumbini 14.87 9.1
MBL 1.04 2.8
Kumari 1.35 0.4
Laxmi 0.13 0.1
Siddhartha 0.60 0.5
ADBL 10.40 8.8
DCBL 1.26 1.6
NMB 1.52 0.5

NEPSE up 5.77pts

Kantipur Report
KATHMANDU, Sept 3 - The Nepal Stock Exchange (NEPSE) Wednesday rose 5.77 points on the trading floor after dropping for four consecutive days. The sensitive index also witnessed an increase of 2.4 points.
The sub-indices on NEPSE showed a mixed reaction. The banking sector was the highest gainer as it increased by 11.88 points followed by the development bank sector and the finance sector which increased by 1.69 points and 2.9 points respectively. Similarly the insurance sector lost the most by shedding 3.51 points followed by the hydropower sector which lost 2.21 points.
The share market witnessed a total turnover of Rs. 86.31 million compared to Rs. 105.17 million on Tuesday with 128,732 shares being traded. Shares of 66 companies changed hands on NEPSE.
Among the 18 commercial banks listed on NEPSE, Everest Bank posted the biggest growth with its stock rising by 110 points. All the banks that were listed on NEPSE saw an increase and none of them went into loss.
Similarly, among the 14 development banks whose shares were traded on NEPSE on Wednesday, Pashupati Development Bank witnessed the highest increase of 30 points while Biratlaxmi Bikas Bank dropped 14 points.
Among the 19 finance companies on NEPSE, Shrijana Finance promoter share was the highest gainer with an increase of 100 points in its share price. Guheyshwori Mer. Bank. Fin. lost 66 points.
The top five winners on NEPSE were Pashupati Development Bank with a 6.67 percent rise in its stock price followed by Lumbini Bank, Everest Finance, Siddhartha Bank and Lumbini General Insurance.
Similarly, the top five losers on Wednesday were Guheyshwori Merchant Banking and Finance which fell 9.97 percent followed by Nepal Awas Bikas Beeta, Reliable Finance, Nabil Bank promoter share and Life Insurance Company.
Nabil Bank topped the chart in terms of turnover with Rs. 9.81 million.