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

Siddhartha Bank open five branch office

Siddartha Bank Ltd inaugurated five new branches in Kathmandu's Tinkune, Kalanki, Gongabu, Gattaghar and Kumaripati on Thursday. These branches intend to extend modern banking services to industrialists, businessmen and general public. The bank floats project loan, business loan, home loan, personal loan as well as hire purchase loan and education loan. Similarly, the bank also provides different types of savings and fixed deposits. The bank has 30 branches in all. It has been able to collect deposits worth Rs 19.46 billion and provided loans worth Rs 16.9 billion within midApril.

Source: THT

15% Bonus share: Siddhartha Bank

Siddhartha Bank has proposed 10% cash dividend by 128th BOD meeting dated on 27th October 2009 (2066 Kartik 10) of the company was not approved by NRB, and instead of cash dividend the 129th BOD meeting dated on 15th November 2009 (2066 Kartik 29) has decided to propose 15% bonus share subject to approval from NRB.

Last year, the bank had provided 15 percent bonus shares and also decided to issue 2:1 right share, however the book closure of right share is yet not finalized.

According to the fourth quarter financial report of the bank (2065/66), the bank has posted Rs. 215.602 million net profit and Rs. 347.660 million operating profit. Likewise, the bank has Rs. 952.200 million as paid up capital and holds Rs. 331.759 millions in its reserve and surplus account.

Source: 
Jamb News Service

Benchmark Nepse lost 6.38 points

Kathmandu,16-Nov-09
Jamb Daily News Service

The vague and shabby stock market at home nation has again landed out of the green terrain getting back to its so called favorite red zone. The market downstairs has primarily been triggered by pessimism over the political clash as the threat of third phase protest from opposition party UCPN-Moist is sizzling on turmoil of consensus. Likewise, new regulation about the conversion of promoter's shares into ordinary shares has also played a vital role in prevailing negativity of the share market. At this scenario, investors are on dubious situation to trade in the market.

The benchmark Nepse index plunged down hefty of 6.38 points or (-1.13%) on Monday to 560.56 led by banking stocks. Yesterday, the market had surged diminutive of 1.08 points or 0.19 percent to 566.94.

The sectoral indexes lost across the board with the hydro sector as the exception. The downward spiral was fronted by others index (-10.57, -1.74%) as scrip price of Nepal Telecom performed poorly. Likewise, banking scrip that accounted the hefty trade volume in secondary market edge down 6.66 points or (-1.22%) to 538.07 fronted by weak demand in scrip of Kumari Bank (Rs. 540, -Rs. 42), Global Bank (Rs. 450, -Rs. 19), Bank of Kathmandu (Rs. 1440, -Rs. 60) along with other. Development bank was down 9.62 points or (1.54%) to 614.86, finance slid 1.59 points to 599.95 while hydro rose marginal of 1.35 points.

Today, International Leasing and Fin. Co. Ltd. announced it book closure for a day on 24th November 2009 (2066 Mangsir 9) for the purpose of issuing 1:2.1 right share, the BOD meeting of Siddhartha Bank (Rs. 704, +Rs. 24) proposed 15% bonus share as earlier decision of the board to provide 10% cash dividend was not approved by NRB. Similarly, the ninth Annual General Meeting of Kumari Bank held on Sunday declared 10 percent bonus shares and decided to redeem the existing promoter share to 51% by selling 19% of promoter's share to public.

Dragged down in scrip price of most of the financials stocks dented the Sensitive index. At the close of session, 78 scrip domestic blue chip slump 1.33 points or (-0.94%) to 140.62. Sensex consist 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 lost 0.64 points to 53.53.

Merely 56 companies registered their presence in the secondary market with 13 gainers and 38 losers. The A-D ratio was maintained at 0.34. All in all 100476 shares traded today via 1042 transactions. Moreover, Rs. 56879894 turnover was realized along with Rs.411106.27 million market capitalizations. Yesterday, 85924 units' shares traded via 1077 transactions amounting to Rs. 40295008 turnover along with Rs.414856.82 million market capitalizations.

The top five standouts of the day are GFL(9.01%), ABBL( 4.44%), SBL( 3.53%), BLDBL( 3.45%), GFCL(3.39%). Whereas, KBL(-7.22%), ACEDBL( -5.32%), GDBNL( -4.95%), GBL( -4.05%), BOK( -4%). comprised of the top five losers.

Market down over investors' worry

The Nepse index (-3.82%) witnessed yet another week of depression as IPOs lured investors toward the primary market. The increase in the inter-banking lending rate has also discouraged investors from borrowing. In addition, the Maoist party´s disclosure of its nation-wide protest plans further deflated investor confidence. Signs of stability, the market exhibited last week did not last with the announcements of bonus and cash dividend from some of the major companies. 

The Commercial Banking sub-index (-5.91%) descended as major banks like Everest Bank (-Rs 320) which is experiencing post-book closure price readjustment, NIC Bank (-Rs 101) which declared 15% bonus shares, Siddhartha Bank (-Rs 88) which declared 10% cash dividend, Siddhartha Development Bank (-Rs 5) which declared 5% cash dividend, all shed prices. Losses of API Finance (-Rs 55) which started trading last week, and the post-book closure readjustment in the share price of Nepal Express Finance (-Rs70) caused losses in the Finance sub-index (-1.63%) despite Merchant Finance (+Rs 103) and General Finance (+Rs 20) efforts to recoup the losses. Swawalamban Vikas Bank´s (+Rs 28) share prices appreciated but with losses in the majority of the development banks, the sector index (-1.55%) declined. Shikhar Insurance (-Rs 6) and Lumbini General Insurance (-Rs 8) posted declines to drag the Insurance sector down (-0.49%). The ´Others´ sub-index (-0.92%) plunged as Nepal Telecom (-Rs 10) shed value. The only sector to defy the market downtrend was the Hydropower sector sub-index (+0.98%) through the appreciation of Chilime Hydropower (+Rs 32).

Among other highlights, Bank of Kathmandu (-Rs 35) declared lucrative benefits of 40% bonus shares and 7.37% cash dividend. Kumari Bank (-Rs 59) and Kist Bank (-Rs 27) closed their books for 10% bonus shares, and 3.50% cash dividend respectively on October 30 which will impact the market next week. Shree Investment Finance also closed its book for 20% bonus shares and 5.26% cash dividend on October 23. Asian Life Insurance´s IPO offering was halted on 30 October because its offer price violates the Company Act. Civil Merchant Bittiya Sanstha (+Rs 6), United Insurance, Sagarmatha Merchant and Finance (-Rs 3) are selling 730 units, 25,575 units and 40,790 units respectively of their unsubscribed right shares. The market volume (Rs 276,356,647) has strengthened; however, the current downtrend is substantiated by signals from technical analysis tools.

 REPUBLICA 

10% Cash Dividend: Siddhartha Bank Ltd.

28, Oct 2009

The 128th BOD meeting of Siddhartha Bank Ltd. has decided to propose 10% cash dividend to its shareholders from the profit of fiscal year 2008/09 on subject to approval from NRB and its upcoming AGM. Last year, the bank had provided 15 percent bonus shares and also decided to issue 2:1 right share, however the book closure of right share is yet not finalized. According to the fourth quarter financial report of the bank (2065/66), the bank has posted Rs. 215.602 million net profit and Rs. 347.660 million operating profit. Likewise, the bank has Rs. 952.200 million as paid up capital and holds Rs. 331.759 millions in its reserve and surplus account.

Source:  Jamb News Service