NIBL, EBL merger proposal on choppy sea

The proposed merger of Nepal Investment Bank Limited (NIBL) and Everest Bank Limited (EBL) is now on hold following discontent within the NIBL over the proposed plan. Some of the NIBL board members and senior staffers are uncomfortable over the merger plan and claim NIBL Chairman Prithivi Bahadur Pande did not inform them about the plan. The issue was debated in the NIBL's board meeting on Friday. Pande, however, has been maintaining that there had been just a preliminary understanding between the chairmen of two banks. "Now, the whole process is on hold for now," said a senior NIBL official.

The two sides had signed a preliminary memorandum of understanding (MoU) for further negotiations, according to the NIBL letter sent to Nepal Stock Exchange (NEPSE) on Sept 21. The NEPSE had sought details from the two banks following news reports about the proposed merger. The EBL had also responded with similar content in its letter sent to NEPSE on Sept. 17. Both banks have, however, maintained that the initial understanding was yet to be considered and approved by their respective board of directors.

The NEPSE had asked them banks about the status of the merger process to determine if the capital market should suspend the share trading of both. "We have to suspend shares trading of merging banks to prevent a sudden volatility in their share prices," said Shankar Man Singh, general manager of the NEPSE. He, however, said that the NEPSE allowed continuation of shares trading after it was known that board of directors of both banks were yet to endorse the initial agreement. Even the EBL staff were in dark about the proposed merger. EBL Assistant General Manager Hum Nath Gurung said that they came to know about the understanding later. "The rumour and controversy has affected the process," he added. Some board members of the NBIL maintain that the merger can be possible only if NIBL has a majority stake during the merger, amid reports that Pujab National Bank that has a stake in EBL had sought the majority stake.

The issue is likely to be hotly debated in the annual general meeting of EBL that is to be held on Thursday as well. If the process goes ahead, it would be the biggest ever merger in Nepal's banking history. Nepal Rastra Bank (NRB) also has a policy of encouraging mergers amid the growing number of banks and financial institutions so that it creates space for new entrants.

Source: 
ekantipur

Book Closure of Nepal Investment Bank

As decided by the 339th meeting of the Board of Directors, the 24th Annual General Meeting (AGM) of the company is going to be held on 27th Ashwin 2067. The bank has decided to close the share transfer from 13th Ashwin, 2067 until completion of its 24th AGM.

Source: 
nepalstock.com

25% dividend of Nepal Investment Bank

Share holders of Nepal Investment Bank Ltd (NIBL) today lost Rs 68 per unit share but the bank announced 25 per cent cash dividend amounting to Rs 602,274,425 to its shareholders for the fiscal year 2009-10. The board-meeting of the bank decided on the dividend amount that is subject to central bank and AGM's approval. NIBL will pay a total of Rs 180,682,326 to Rastriya Banijya Bank and Rastriya Beema Sansthan, its government stakeholders who together own a 30 per cent stake in bank.

The bank has also paid Rs 800 million to the government making it the highest tax payer among the Nepali banks and the fifth largest among Nepali corporates. "Overall, Nepal Investment Bank will contribute around Rs 981 million to state coffers, including the profit paid to its government shareholders," said general manager of the bank Jyoti Pandey. "The bank has continued its long term strategy to become the leading bank in the country by pursuing a strategy of growth and delivery of quality financial services."It has achieved remarkable growth over the past eight years. In 2002 it started with a total paid up capital of Rs 0.5 billion and the bank has a paid up capital of 2.4 billion ¿ one of the largest in the country ¿ at present. The bank has a deposit base of around Rs 50 billion and the total assets of the bank have increased to Rs 57 billion this year making it the largest lender in Nepal from Rs 4.9 billion in 2002.

Similarly, Nabil Bank lost Rs 39 per unit share. The bonus announcements and nearing book closure of the listed companies have pulled the Nepse down by 1.99 points to 402.44 points today. Except the shareholders of hydropower and hotels, all the shareholders lost today in the secondary market that saw 1,004 transactions worth Rs 27,540,241. A total of 75,430-unit shares changed hands today. Similarly, KIST Bank Ltd's board meeting decided to give five per cent cash dividend subject to approval from Nepal Rastra Bank and its AGM. Meanwhile, Uniliver Nepal has decided its book closure from September 24.

Source:
tht

Merger between Investment Bank & Everest Bank hotly debated

Before it has even materialised, the proposed merger between two leading commercial banks of Nepal seems to have hit the rough weather. A week after the news about the proposed merger between Nepal Investment Bank Limited (NIBL) and Everest Bank Limited (EBL) appeared in the local media, some board members at the NIBL has opposed the plan. A source close to the NIBL said that the merger issue was hotly debated in the NIBL Friday's board meeting. Prithivi Bahadur Pande, chairman of the NIBL, hinted that there were notes of dissent about the merger proposal at the board meeting. "It is natural to see opposition when we start to do a new thing," Pande told the Post. He didn't elaborate what the level of dissent was. .

For their part, some board members and the senior bank staff say they were kept in the dark by Chairman Pande about the proposed merger plan. "It would have been better had the board and senior management been informed about it," said a board member on condition of anonymity. Pande said that it was "an informal dialogue" between two chairmen and "nothing has been finalized yet." "It is not necessary to take approval for informal dialogue," said Pande, the NIBL chairman. "It is necessary to get the board's approval for the formal merger process." According to media reports, there was a meeting between the NIBL Chairman and B.K. Shrestha, chairman of the EBL, in New Delhi in the last week of August for the merger between the two banks. Pande admitted that there had been talks between him and Shrestha to "test waters." India's Punjab National Bank (PNB) that has a 20 percent stake in the EBL is said to be positive about the merger.

Pande termed the meeting between him and Shrestha in New Delhi as just a case of testing the waters. "Until there are formal talks, it should not be taken as a merger taking place between the two banks," said Pande. The NIBL board member say they are not against the merger per se. "Our concern is that the NIBL must have a majority stake in case of a merger," he said. "We can't allow the NIBL to merge with the EBL in a scenario where NIBL would lose its identity." While how much stake the NIBL and the EBL each will have after the merger has not been finalised, media reports say the PNB is keen to get majority stakes. Also, the PNB wants the majority management of the bank. And, this is the issue that has made the senior management of the NIBL jittery.

The senior staff at the NIBL is of the view that there should not be a change in the top management structure. "One major concern for them is that of job security," said the board member. The NIBL (earlier Nepal Indosuez Bank) was established in 1986 as a joint venture between Nepali and French partners. The French partner with 50 percent holding of the capital of NIBL was Credit Agricole Indosuez. But the French company, in 2002, sold its stake to a Nepali group of companies comprising bankers, professionals, industrialists and businessmen. Since then, Pande has been leading the NIBL and has, in the last eight years, made the NIBL as one of Nepal's leading banks. In the last fiscal year, its net profit was the highest amongst the private sector banks. As of now, its promoters have a 50 percent stake while Rastriya Banijya Bank and Rastriya Beema Sansthan, both government entities, each hold a 15 percent stake. The noise of the merger in fact began two years ago. The NIBL had then upgraded its banking software from Pumori to Finnacle which the EBL was already using.

Source:
ekantipur

Nepal Investment Bank Ltd inaugurates 40th branch

Nepal Investment Bank Ltd (NIBL) opened its 40th branch in Lagankhel on Monday. Lagankhel branch is connected to all other 39 branches around the country with Any Branch Banking Service. The branch office provides deposit and credit facility, foreign exchange, retail banking, import, export, letters of credit, guarantees and remittances, locker facility, 365 days service, ATM facility, multiple teller counters, among other updated banking services, said the bank. It plans to extend its access in more places in future.

Source: tht

NIBL first bank to get A in credit rating

Nepal Investment Bank Limited (NIBL) has become the first bank in Nepal's banking history to receive the investment grade rating of [Nepal] A from the Indian Credit Rating Agency (ICRA), an associate of Moody's Investors Service. The rating for issuers in Nepal is assigned on a scale which ranges from [Nepal] AAA to [Nepal] D. 

The rating is based on the good market position of NIBL in Nepal, its track record of expanding its balance sheet while maintaining a stable earning profile and its experienced management team, states a press release of the bank.

Despite stiff competition, NIBL has maintained a healthy market share of about 8 percent and 10 percent in terms of deposits and loans and advances respectively. Moreover, the growth rate of NIBL has been impressive. It achieved a relatively higher deposit growth of 41 percent and 36 percent in 2007/08 and 2008/09.

NIBL, which also has the largest credit portfolio of Rs. 36.2 billion among the commercial banks in Nepal as of mid-July 2009, has recorded a strong four-year cumulative average growth rate (CAGR) of 37.5 percent in lending from Rs. 10.1 billion in mid-July 2005.
NIBL has delivered good and stable profitability and net interest margin over the years with low operating expenses. Regulatory capital adequacy ratio of 11.24 percent as of mid-July 2009, with a Tier I capital ratio of 8.56 percent coupled with NPA of 0.58 percent as of mid-July 2009 and provision coverage of over 90 percent demonstrates the sound health of NIBL. NIBL has a presence throughout the country through its 32 branches and 60 ATMs (150 ATMs including consortium member ATMs).

Source:
ekantipur

Financial Stocks Leads Nepse up (+3.16 Points)

Key financial scrip rushed to positive finish on Tuesday set off optimistic close on Nepal stock exchange after plunging hefty on previous session. The home equity market edge up 3.16 points or 0.56 percent to 564.98 after previous session's plunge of 5.12 points. 

In recent days, the sole secondary market is experiencing series of ups and down. It forward one steps up but eventually traded two steps down on frail investment outlook. Investors are on dubious situation what to do next and are too confused on predicting the stock market health. There are rumors around the city that market will collapse further more hence asking regularities bodies to act decisively in favor of stock market.

However today the market has ticked to higher end discounting all the negative rumors. But market analyst viewed that, even stocks have surged today it has indeed failed to uplift the market sentiment in upper perimeter. Investors are viewing carefully the each and every happening on political environment of nation which will basically craft the path of stock market in near term.

Commercial bank which accounts the large volume of trade ended adding 3.95 points or 0.73 percent to 541.46. Standard Chartered (Rs. 3600, +Rs. 40), Nabil Bank (Rs. 2655, +Rs. 5), Nepal Investment (Rs. 850, +Rs. 28), NIC Bank (Rs. 755, +Rs. 21) along with other key commercial bank heave up today to support the surge in Nepse index. Likewise, surge in scrip price of Sanima Bikash Bank (Rs. 577, +9.9%) and Vibor Bikash Bank (Rs. 392, +5.66%) led the development bank index to close at 5.96 points or (+0.97%) higher.

The BOD meeting of Sanima Bikash Bank scheduled on 16th November 2009 (2066 Mangsir 1) has decided to propose 1:1.5 right shares and previously than bank has decided to give 5% bonus shares from the profit of fiscal year 2008/09.

Finance sub-index was up 0.57 points to 599.76, others sub-index gained 2.35 points or 0.39 points, however hydro sub-index plummets marginal of 0.27 points while insurance lost hefty of 9.32 points or 1.55 percent.

Sensitive index gained parallel to Nepse index with a surge of 1.09 points or 0.78 percent to 141.50. Similarly, float Index an indicator of performance of ordinary shares in the market was up 0.25 points to 53.81.

Merely 60 companies registered their presence in the secondary market with 23 gainers and 26 losers. The A-D ratio was maintained at .88. All in all 207912 shares traded today via 857 transactions. Moreover, Rs. 72723685 turnover was realized along with Rs.413420.31 million market capitalizations. Yesterday, 100476 units share traded via 1042 transaction amounting to Rs. 56879894 turnover along with Rs.411106.27 million market capitalizations.

The top five standouts of the day are GFL(9.92%), SBBL( 9.9%), NUBL( 6.79%), VBBL( 5.66%), DCBL(5%). Whereas, DCBLPO(-5.77%), RMBFI(-5.71%), NLIC( -3.9%), GBL( -3.11%), BDBL( -2.49%). comprised of the top five losers.

Nepal Investment Bank receives ´A´ rating

Nepal Investment Bank Limited (NIBL), the largest private sector bank in terms of deposits and lending, has received an Investment Grade credit rating with the rating of NP ´A´ meaning adequate quality. NIBL has become the first Nepali corporate entity to receive such a rating from renowned ICRA Limited.

"The rating reflects the stable and sound nature of NIBL´s credit quality even as we hold one of the largest balance sheets in the financial sector. We will now take necessary measures to further improve risk management capacity and work towards achieving an even higher rating in future assessments," Prithivi Pande, chairman and CEO of the bank, told the gathering.

Source:
Myrepublica

Nepse nose leap down to floor

Investors stampeded to sell at the same time led the scrip prices in a downward spiral at Nepal Stock Exchange. The sole secondary market is running out of hope on dreary investors' confidence. After Tihar holiday, Nepse leap down to floor for all trading sessions which indicates the weak sentiments prevailed among the investors on various grim news floated around the stock market. Today, the benchmark Nepse index rolled down 11.13 points or 1.92 percent to 567.06, its lowest close since 19th June 2009 (567.28 points).

Floating of new shares after right and bonus issues along with IPOs has increased the supply pressure in the market. On the other, declaration of street protest by opposition party U-CPNL (Moist) has dented the hope of peace and security and investment atmosphere nationwide and stock market is no more exception.

Better than expected earnings and encouraging dividends failed to provide the glimmer of hope to boost the market sentiments and now the question is lingering in everyone's mind is, why the market is plunging down ? and how and when will be market budge up to sun shine?

The shabby investors drew their hands from most of the scrip to lend fright situation in most of the secotral indices. Commercial banks, mostly traded scrip at sole secondary market plummet 16.67 points or 3.02 percent to 535.52. Machapuchchhre Bank (Rs. 305, -9.76%), Global Bank (Rs. 458, -8.40%), Nepal Investment Bank (Rs. 778, -7.38) were the biggest losers in commercial banks including key banks as Standard Chartered (Rs. 3500, -Rs. 83), Nabil Bank (Rs. 2646, -Rs. 54), Bank of Kathmandu (Rs. 1445, -Rs. 70) and so on.

Likewise, development bank slid 7.51 points or 1.16 percent to 639.30 fronted by loss in share price of Sanima Bikas Bank (Rs. 530, -3.64%) and Infrastructure Development Bank (Rs. 418, -3.24%). Finance lost 7.32 points or 1.19 percent to 606.88, while dropped down in share price of Nepal Telecom led others index to retreat by 3.52 points or 0.56 percent. However, insurance rose diminutive of 0.05 points to 606.35 and hydro remained unchanged.

"Everyone knows scrip prices at secondary market has already slid too much yet investors are selling on that low price, which points out the market is ruling out by depressing outlook of investors rather than any fundamentals of companies", said Nilesh Shakya (an investor in stock market).

Sensitive index, 78 scrip domestic blue chip ended losing 3.53 points or (-2.44%) to close at 141.04 as most of the scrip price traded below previous close. Sensex consists, 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies. Similarly, float Index an indicator of performance of ordinary shares in the market fell 1.14 points to 54.12.

Merely 62 companies registered their presence in the secondary market with 7 gainers and 48 losers.The A-D ratio was maintained at .15. All in all 219125 shares traded today via 877 transactions. Moreover, Rs. 84204608 turnover was realized along with Rs.399699.38 million market capitalization.

The top five standouts of the day are PFCL(1.85%), PFL( 1.82%), LGIL( 1.55%), SBI( 1.2%), PSDBL(1.01%). Whereas, MBL(-9.76%), GBL( -8.4%), NIB( -7.38%), SBL( -6.07%), ILFC( -5.94%). comprised of the top five losers.

Market Retraction Persists: Nepse plunged 4.88

Kathmandu,08-Oct-09
Jamb Daily News Service
Stocks in home bourse stagger down for third consecutive day fronted by hefty fall in financial sectors. Out of five trading days after weeklong dashain holiday, the sole secondary market edge up higher for initial couple of days, however retreated for remaining days as price adjustment of Standard Chartered (Rs. 3620, +Rs. 56) after book closing date hammered the Nepse index to low for more than seven months. On Thursday's session, the benchmark index kicked up with subdued fall, thereafter continued to wobble down to 602.98 at the closing bell dropping 4.88 points or 0.88 percent.
In is natural that, stocks market ebbs and flow to negative and positive terrain on vary investors' outlook buoyed by several factors. However, at contemporary phase after series of downfall investors at secondary market are much more anxious regarding the health of market in near term.
Key indexes performed lackluster on today's session fronted by commercial bank index (588.68, -5.56, -0.94%) as prices of Nepal Investment Bank sagged down 5.26 percent to Rs. 900 along with others. Likewise, development bank slid 7 points to 654.24, finance plummets 2.65 points and hydropower slump single points. Others sector dragged down 7.70 points while insurance experienced slight tick in its index by 0.06 points to 609.07.
Slump down in scrip prices of most of the scrip at Nepal Stock Exchange triggered the negative end to sensitive index that lost 1.23 points or 0.82 percent to 152.43. 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 0.34 points to 57.84.
Merely 65 companies registered their presence in the secondary market with 17 gainers and 40 losers. The A-D ratio was maintained at 0.43. All in all 106154 shares traded today via 829 transactions. Moreover, Rs. 59666995 turnover was realized along with Rs.423732.95 million market capitalizations. Yesterday, 152892 shares traded today via 1059 transactions amounting to Rs. 69759919 turnover along with Rs.426176.76 million market capitalizations.
The top five standouts of the day are PFL(7.55%), SIL( 2.79%), TBBL( 2.25%), CHCL( 2.01%), IFIL(1.97%). Whereas, LBFIL(-9.79%), CMBF( -5.69%), NIB( -5.26%), ILFC( -4.55%), DCBL( -3.47%). comprised of the top five losers.

Investment Bank NIBL, Yeti sign e-ticketing MoU

Nepal Investment Bank Limited (NIBL) has signed Memorandum of Understanding with Yeti Airlines to allow the NIBL account holders to book and purchase air tickets via NIBL e-Banking. The partnership will help the customers to enjoy the ultimate banking experience by providing easier and convenient option for ticket purchase through secured website environment and is also expected to propel the efficiency level of the distribution channel and reduce operational costs for the airline, according to a NIBL press release.
Any customer with NIBL eBanking account can purchase the air-ticket by filling the requisite information set at the Yeti Airlines website. After receiving the conformation from the airlines, the customers can make their payments online by clicking the NIBL eBanking button in Yeti Airline's website. Once the payment is confirmed, the customers shall be redirected back to the Yeti Airlines webpage where they would be provided with the confirmation code allowing them to print the e-Ticket.
The eBanking facility has been very popular amongst the customer as they can make various utility payments like school bills, cable TV bills, airline ticket purchases etc, needless to mention the payment of postpaid mobile bill payment and prepaid top ups, according to NIBL.

NEPSE starts week with gain

Kantipur Report
KATHMANDU, Sept 7 - The Nepal Stock Exchange (NEPSE) started the week on a promising note as it went up by 2.17 points on Sunday. The index settled at 662.57 points when trading closed. The sensitive index lost 0.23 point.
The NEPSE sub-indices saw a mixed reaction as only two of them increased while three witnessed a downfall.
The development bank sector was the highest gainer increasing by 5.14 points followed by the finance sector which went up by 2.73 points. Similarly, the insurance sector was the biggest loser on the floor as it shed 4.12 points followed by the hydropower sector and the banking sector which fell by 1 point and 0.37 point respectively.
Total transactions on NEPSE reached Rs. 117.46 million with 178,992 units of shares being traded. Shares of 69 companies changed hands on Sunday.
Among the 21 commercial banks whose shares were traded on NEPSE on Sunday, Standard Chartered Bank posted the biggest growth with the stock rising 45 points while Laxmi Bank lost the most on the trading floor by shedding 83 points.
Similarly, among the 13 development banks, Sanima Vikash Bank witnessed the highest increase of 15 points while Clean Energy Develop-ment Bank lost 14 points.
Among the 24 finance companies, Merchant Finance Company promoter share was the highest gainer with an increase of 138 points in its share price. Guheyshwori Merchant Bank and Finance was the biggest loser shedding 59 points.
The top five winners on NEPSE were IME Financial Institution with a 6.54 percent rise in its stock price followed by Shikhar Bittiya Sansthan, Nepal Investment Bank, Capital Merchant Banking and Finance and Standard Finance.
Similarly, the top five losers on Sunday were Guhyeshwori Merchant Bank and Finance which fell 9.9 percent followed by Laxmi Bank, Nepal Awas Bikas Beeta Sansthan, Siddhartha Bank and World Merchant Bank.
Nabil Bank topped the chart in terms of turnover with Rs. 26.92 million.

Banks' deposit touches Rs 565 billion

REPUBLICA
KATHMANDU, Sept 5: Propelled mainly by an astonishing rise of over 50 percent in remittance income, deposit mobilization as well as lending volume of Nepal´s 26 national level commercial banks recorded impressive growths of over 30 percent at the end of last fiscal year.
A central bank statistics released recently revealed that total deposit mobilization rose by 32.27 percent to reach Rs 563.6 billion by the end of mid-July 2009. Total deposit mobilization was Rs 426.08 billion at the end of the last fiscal year. Similarly, the total lending volume, that includes loans and advances, touched to Rs 398.14 billion, which was 31 percent more than last year´s lending worth Rs 302.91 billion.
State-owned Rastriya Banijya Bank (RBB) continued to be the largest bank in terms of deposit volume. According to the central bank, the RBB has mobilized deposit worth Rs 67.98 billion, which was a rise of 17.2 percent against last year´s figure. The semi-state-owned bank Nepal Bank Limited consolidated its second position whereas Nepal Investment Bank (NIB), which has a total deposit worth of Rs 46.70 billion, emerged as the third largest depositor. However, in the private bank category, the NIB remained as the largest bank in terms of deposit mobilization volume.
The NIB, which has made an impressive progress by expanding its banking base, emerged as the largest lender of the country. According to the data, the total volume of loans and advances extended by the bank has touched Rs 36.25 billion against Rs 27.14 billion recorded at the end of Mid-July 2008.
Among the major deposit categories, saving deposits that is a popular saving instrument among middle class continued to attract largest deposit worth of Rs 260 billion against Rs 211.45 billion recorded last year. Likewise, time deposits, popularly known as fixed deposit, also recorded a whopping rise of 34.8 percent to 141.26 billion followed by current deposits -- widely used for business transactions -- that witnessed a growth of 27.7 percent to Rs 71.65 billion.
Among of the major lending sector, private sector lending rose by 34.45 percent to Rs 387.45 billion against Rs 288.28 billion recorded during the preceding fiscal year.However, the volume of investment in securities declined by 3.12 percent to Rs 69.26 billion from previous year´s Rs 71.5 billion.

Nepal Investment Bank to support CDB in the investment and project financing in Nepal

Nepal Investment Bank Limited (NIBL) and China Development Bank (CDB) have signed a Memorandum of Understanding (MoU) to help promote Nepal’s economic development for mutual benefit.

Prithivi Bahadur Pandey, Chairman and Chief Executive Officer (CEO), NIBL and Jiang Chaoliang, Governor of CDB, signed the MoU on behalf of their respective organization.

A press statement issued by NIBL said that CDB by using the successful practices and experience of development finance in China will provide financial support to the projects recommended by NIBL.

NIBL will provide necessary support for participation of CDB in the investment and project financing in Nepal.

According to the agreement, CDB will provide necessary support for participation of NIBL, in the investment and project financing in China.

As per the agreement, both parties should set up a long term cooperation relationship, project cooperation, financial consultancy, information exchange, credit grant, currency swap and other concerned areas of respective governments to implement the cooperation.

NIBL said that the purpose of MoU was to promote and realize the development goals and strategies of Nepalese and Chinese governments, to expand bilateral economic and trade relationship, to improve cooperation in financial market and the financing structures and thus propelling the development and growth of important areas of cooperating as desired by both government.

Bank deposits surge 30pc despite slump

Kantipur Report
KATHMANDU, Sept 3 - Deposits in the country's commercial banks increased by an astounding Rs. 128.7 billion in the last fiscal year. Buoyed by a constant growth in remittances, total deposits in Nepal's 25 commercial banks reached Rs. 555.14 billion, a 30.18 percent increment from the previous year.
The fourth quarterly report of Nepal Rastra Bank (NRB) shows that, along with deposits, lending and net profits of commercial banks have also increased significantly. According to the central bank's report, banks in the country have maintained growth despite the global economic crisis.
The NRB report shows that lending and net profits have increased by 29.61 percent and 33.09 percent respectively. The commercial banks provided loans and advances amounting to Rs. 384.31 billion against Rs. 296.51 billion provided by the 25 banks in the last fiscal year.
According to the unedited financial figures of the central bank, Rastriya Banijya Bank (RBB) collected the highest amount of deposits of Rs. 68.09 billion. Nepal Investment Bank (NIB) was close behind with Rs. 46.69 billion. Its deposits surged by 35.52 percent in the last fiscal year. NIB leads private banks in terms of deposits.
NRB's report also shows that NIB is the largest lender among the commercial banks. In the last fiscal year, the bank provided loans and advances worth Rs. 36.82 billion.
The Agricultural Development Bank, Nepal (ADB/N), RBB and Nabil Bank issued loans amounting to Rs. 32.56 billion, Rs. 31.60 billion and Rs. 27.58 billion respectively. The commercial banks jointly earned a net profit of Rs. 14.14 billion during the period against Rs. 10.63 billion last year. Among the 26 banks, five commercial banks have recorded over Rs. 1 billion in net profits in the last fiscal year.
Nepal Bangladesh Bank declared the highest net profit amounting to Rs. 2.47 billion, followed by RBB and ADB/N which posted net profits of Rs. 2.03 billion and Rs. 1.23 billion respectively. The profits of these three banks improved significantly due to write back of their non-performing loans.
Nabil Bank is the leader among private banks in terms of net profit with Rs. 1.03 billion followed by Standard Chartered Bank.Top Ten in terms of lending
Banks
Nepal Investment Bank 36.82
ADB/N 32.56 Rastriya Banijya Bank 31.60
Nabil Bank 27.58 Himalayan Bank 25.51
Everest Bank 24.46 Nepal Bank 19.48
Nepal SBI Bank 15.13 Bank of Kathmandu 14.94
Kumari Bank 14.59

Top Ten in terms of deposits Banks
Rastriya Banijya Bank 68.09
Nepal Investment Bank 46.69
Nepal Bank 44.62
Nabil Bank 37.34
Standard Chartered Bank 35.87
ADB/N 35.15
Himalayan Bank 34.74
Everest Bank 33.32
Nepal SBI Bank 27.95
Bank of Kathmandu 18.08

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 makes another downfall

KATHMANDU, Aug 26 - The Nepal Stock Exchange (NEPSE) Tuesday lost 14.47 points on the trading floor. The sensitive index also decreased by 4.8 points.
A majority of the sub-indices on NEPSE saw a decline on Tuesday. The banking sector lost the most by shedding 23.42 points followed by the insurance, finance and development bank sectors which went down by 1.66 points, 1.07 points and 0.58 point respectively.
The share market witnessed a total turnover of Rs. 86.36 million with 123,722 shares being traded. Shares of 55 companies changed hands on NEPSE.
Among the 21 commercial banks listed on NEPSE, Laxmi Bank posted the biggest growth with its stock rising by 6 points while Nabil Bank lost the most on the trading floor by shedding 290 points.
Similarly, among the 10 development banks whose shares were traded on NEPSE, Ace Development Bank witnessed the highest increase of 11 points while Triveni Bikas Bank dropped 14 points.
Among the 15 finance companies on NEPSE, ICFC Bittiya Sansthan was the highest gainer with an increase of 9 points in its share price. NIDC Capital Markets lost 22 points.
The top five winners on NEPSE were Ace Development Bank with a 2.33 percent rise in its stock price followed by ICFC Bittiya Sansthan, DCBL Bank, Butwal Power Company and Chilime Hydropower Company. Similarly, the top five losers on Tuesday were Nepal Investment Bank which fell by 9.92 percent followed by Kumari Bank, Nabil Bank, Global Bank and Nepal Bangladesh Bank.
Butwal Power Company topped the chart in terms of turnover with Rs. 10.18 million. - Kantipur Report

Investment Bank declares 20pc cash dividend

KATHMANDU, Aug 25: The meeting of Board of Directors of Nepal Investment Bank, the largest private sector bank in terms of deposit and lending volumes, has proposed 20 percent cash dividend to its shareholders. However, the proposed dividend is subject to the approval of Nepal Rastra Bank (NRB) and Annual General Meeting (AGM) of the NIBL, stated a press release issued by the bank on Monday.The proposed 20 percent dividend amounts to Rs 481.41 million, which volume wise is among the highest in Nepal, the release added. It further stated that the bank has managed to earn a net profit of Rs 900.61 million at the end of 2008/09 fiscal year and the amount was an increment of 29.26 percent as compared to last fiscal year while increasing its paid-up capital to Rs 2.407 billion from Rs 1.203 billion, an increment of 99.92 percent.As of the forth quarter of fiscal year 2008/09, the banks´s lending, deposit and customer base were Rs 36.83 billion, Rs 46.7 billion and 270,000 respectively, while the Non Performing Asset (NPA) of the bank has decreased to 0.58% from 1.12%, stated the statement. - REPUBLICA

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