22 August 2024, Kathmandu

National Fund Management has announced the auction of 11.72 lakh unsold shares at a fixed price of Rs. 50 per share.

National Fund Management

These shares, which belong to the undistributed rights shares of the founding group, will be available for sale through an auction process from August 29th to September 5th. The decision to auction the remaining shares follows the company’s earlier rights issue, which saw a substantial portion of the offered shares go unsold.

21 August 2024, Kathmandu

Nepal Rastra Bank has enacted a new regulation prohibiting Nepali citizens from opening bank accounts or investing in real estate abroad.

Nepal Rastra Bank Imposes Ban on Foreign Bank Accounts

The restriction follows the Foreign Exchange (Regulation) Act, of 2019, and the Prohibition of Foreign Investment Act, of 2021. This measure aims to curb foreign investments and ensure that financial transactions align with national economic policies.

Under the new rules, Nepali citizens are barred from opening foreign bank accounts or making investments in real estate or other types of foreign investments. The only exception allows Nepali individuals to open a foreign bank account solely to deposit earnings accrued while staying abroad. However, any funds deposited in such accounts must be repatriated to Nepal within 35 days of the individual’s return.

The notification from Nepal Rastra Bank stipulates that if a person wishes to maintain a foreign bank account or investment after returning to Nepal, they must report details of the account or investment to the bank within the specified 35-day period. This includes providing information such as the account name, address, account number, foreign currency used, and the amount involved.

This regulatory change is intended to control the flow of foreign capital and ensure that all foreign earnings are properly accounted for within Nepal. The move reflects the government’s efforts to strengthen control over financial transactions and maintain transparency in the management of foreign investments.

Nepal Rastra Bank Imposes Ban on Foreign Bank Accounts

21 August 2024, Kathmandu

In the financial year 2080-81, Nepal experienced a decrease in legally outgoing remittances, with a total of 6.06 billion rupees leaving the country.

Nepal Sees Decrease in Legal Remittances

Nepal Sees Decrease in Legal Remittances

21 August 2024, Kathmandu

Everest Bank Limited has officially relocated its Baneshwar branch to a newly constructed building.

Everest Bank’s Introduces “Digital World” Service

Now operating from its state-of-the-art facility located approximately 150 meters west of its previous address in Kathmandu Metropolitan City Ward No. 10, New Baneshwar. The branch, which resumes all banking services at the new location, was inaugurated by Dr. Bal Gopal Vaidya, the chairman of the bank’s board of directors.

During the inauguration ceremony, Dr. Vaidya emphasized the bank’s commitment to delivering exceptional and cutting-edge banking services to the New Baneshwar community and its surroundings. He highlighted the bank’s mission to provide high-quality and user-friendly banking experiences while maintaining a strong partnership with Bank Biswas.

The new facility features a modern “Digital World” section, designed to centralize all digital banking services. This innovative space allows customers to perform a range of banking activities through advanced digital technology, including account openings, cash transactions, check deposits, and service requests. With this upgrade, Everest Bank aims to streamline and enhance customer interactions with the latest banking technologies.

In collaboration with Punjab National Bank India, Everest Bank boasts over 1.4 million satisfied customers and operates an extensive network of 128 branches, 4 extension counters, 7 regional offices, and 166 ATMs across Nepal. The bank also offers mobile, internet, and SMS banking services and manages 32 collection centers for government revenue collection. This expansion and modernization effort reflect Everest Bank’s ongoing dedication to improving customer service and accessibility.

Everest Bank’s Introduces “Digital World” Service

21 August 2024, Kathmandu

In the latest financial year, Himalayan Reinsurance Limited has achieved the remarkable feat of becoming the company with the highest share turnover.

Himalayan Reinsurance Tops Share

Himalayan Reinsurance Tops Share

20 August 2024, Kathmandu

Chandra Prasad Dhakal, President of the Federation of Nepal Industry and Commerce, has voiced concerns about Nepal’s current state of foreign direct investment (FDI).

President Dhakal Highlights Weak Foreign Direct Investment

Speaking at the ‘Finance for Development’ dialogue program, organized jointly by the United Nations, the Ministry of Finance, and the Nepal Chamber of Commerce and Industry, Dhakal emphasized the alarming inadequacy of FDI in the country.

Dhakal revealed that foreign direct investment constitutes a mere 0.2 percent of Nepal’s Gross Domestic Product (GDP), which he described as critically low for a nation in Nepal’s economic position. He expressed frustration over the shortfall in foreign subsidies, which have not met the expected targets.

The president warned that the increasing reliance on debt is unsustainable and poses significant risks to Nepal’s economic stability. He pointed out that as Nepal transitions from a least developed country status, the growing dependence on loans could exacerbate existing challenges and undermine economic progress.

“This low level of foreign direct investment is a serious concern,” Dhakal stated. “Our economy needs substantial foreign investment to drive growth and development, but the current figures are not promising. We must address these issues to prevent further economic instability.”

Dhakal’s comments reflect broader concerns about Nepal’s economic strategies and the effectiveness of its policies in attracting and retaining foreign investment. The dialogue program highlighted the urgent need for reforms to improve the investment climate and reduce the country’s dependence on debt.

As Nepal continues its development journey, addressing these issues will ensure sustainable economic growth and stability. The government and industry leaders will need to collaborate closely to create a more favorable environment for foreign investors.

President Dhakal Highlights Weak Foreign Direct Investment

20 August 2024, Kathmandu

The Ministry of Industry, Commerce, and Supply has recently approved and implemented the “Startup Enterprise Loan Operation Procedure, 2081,” a landmark initiative aimed at fostering innovation and entrepreneurship in Nepal.

Government Offers Startups Loans 

The procedure, approved on August 14, simplifies the process of obtaining subsidized loans, providing a significant boost to entrepreneurs with fresh ideas and innovative capabilities.

Under this new scheme, startups can access loans of up to NPR 25 lakhs at an exceptionally low interest rate of 3%, with the project itself serving as collateral. The Industrial Business Development Foundation, the body responsible for executing the startup loan program, will soon issue a public notice calling for proposals from eligible entrepreneurs.

To qualify for the loan, businesses must meet specific criteria: the enterprise must have been registered for less than ten years, should not have generated an annual turnover exceeding NPR 150 million in any fiscal year, and must demonstrate strong potential for rapid growth driven by innovative thinking. Additionally, businesses that import goods and services, are blacklisted, or are registered as holding and investment companies are not eligible for this loan.

The loan comes with a maximum repayment period of five years. Entrepreneurs must deposit the loan amount into a designated bank account, with any unused funds being returned to the Federal Reserve Fund at the end of the fiscal year. Entrepreneurs are also required to self-declare that they have not received concessional loans from other agencies, as double financing is prohibited under this procedure.

The loan disbursement process is structured in installments: loans up to NPR 5 lakhs are released in one installment, loans up to NPR 15 lakhs in two installments, and loans up to NPR 25 lakhs in three installments. Banks are required to provide the first installment within seven working days of the agreement and subsequent installments based on verified progress in the startup enterprise.

This initiative represents a significant step forward in supporting Nepal’s burgeoning startup ecosystem, offering financial assistance to innovative entrepreneurs and promoting sustainable economic growth.

Government Offers Startups Loans 

20 August 2024, Kathmandu

Citizens Bank International Limited has announced the winners of its “Partner for Progress” Facebook Video Competition, celebrating the creativity and inspiration shared by participants.

Citizens Bank Awards Winners

The competition concluded with the top three winners being awarded by the bank’s Chief Executive Officer, Ganesh Raj Pokharel.

The first-place prize was awarded to Nikita Gurung, who received a cash prize of NPR 50,000. Babita Dulal Bastakoti secured the second position, earning NPR 30,000, while Krishal Shrestha claimed the third spot with a prize of NPR 20,000. The competition highlighted the importance of family support in achieving success, with participants showcasing how the encouragement and involvement of family members—such as a husband, children, brother, or father—play a crucial role in reaching one’s goals.

The “Partner for Progress” video contest aimed to engage the bank’s customers and the wider community, encouraging them to share their personal stories of growth and success, emphasizing the role of partnerships and support systems in their journeys. Each of the winning videos creatively depicted the theme, resonating with viewers and judges alike.

Citizens Bank International Limited continues to foster community engagement through initiatives like these, which not only recognize individual achievements but also reinforce the bank’s commitment to supporting its customers’ progress and success. The success of this contest reflects the strong connection between the bank and its customers, further solidifying its position as a trusted partner in their financial and personal growth.

Citizens Bank Awards Winners

19 August 2024, Kathmandu

In a growing trend of meaningful gifting, Dhanishwara Baijali from Shivraj Municipal Ward No. 5 in Kapilvastu District has made headlines by gifting a life insurance policy worth NPR 10 lakhs to her son on his birthday.

Mother Gifts Life Insurance Policy

Mother Gifts Life Insurance Policy

19 August 2024, Kathmandu

The Securities (First Amendment) Bill, 2081, has been officially registered in the Federal Parliament’s House of Representatives, marking a significant step in strengthening the regulatory powers of the Securities Board of Nepal (SEBON).

Securities First Amendment Bill 2081

The bill introduces new provisions, including the authority for SEBON to investigate banking transactions related to securities trading.

Under the proposed amendments to the Securities Act, of 2063, SEBON will be empowered to request records of banking transactions from Nepal Rastra Bank if such information is required to investigate transactions involving securities by any individual, company, or organization. This expanded authority aims to enhance transparency and accountability in the securities market.

The bill also introduces stricter penalties for violations of securities laws, particularly concerning insider trading and market manipulation. Individuals found guilty of engaging in insider trading could face penalties of up to three years imprisonment, fines ranging from NPR 5 million to NPR 30 million, or both. In cases of false transactions, price manipulation, or providing misleading information, offenders may face similar penalties, including up to three years imprisonment or fines ranging from NPR 500,000 to NPR 5 million.

Additionally, the bill addresses the issue of false disclosure and non-compliance with required reporting. Individuals or entities that knowingly submit false information, or fail to keep or submit required documents on time, could be fined between NPR 500,000 and NPR 20 lakh. These measures are intended to reinforce the integrity of the securities market by holding individuals and entities accountable for accurate and timely reporting.

The introduction of the Securities (First Amendment) Bill, 2081, underscores the government’s commitment to enhancing the regulatory framework governing Nepal’s securities market. By granting SEBON greater investigative powers and imposing stringent penalties for violations, the bill aims to ensure a more transparent and reliable market environment for investors and stakeholders.

Securities First Amendment Bill 2081

19 August 2024, Kathmandu

Manushi Laghubitta Financial Institution has reported a net profit of NPR 1.92 crore in the fourth quarter of the fiscal year 2080/81, marking a significant turnaround from the previous fiscal year.

Manushi Laghubitta Reports

In the same period of FY 2079/80, the institution recorded a net loss of NPR 4.42 crore. The positive financial performance in FY 2080/81 highlights the institution’s successful efforts in overcoming past challenges.

The financial institution reported an operating profit of over NPR 2.72 crore for the last fiscal year. Additionally, it managed to recover NPR 1.38 crore from impairment charges, further bolstering its profitability. As a result, Manushi Laghubitta’s reserve fund now stands at NPR 5.47 crore, with a share capital of NPR 10.93 crore.

Key financial indicators for the institution include earnings per share (EPS) of NPR 17.53 and a net worth per share of NPR 150.02. The institution also has a distributable profit of approximately NPR 1.43 crore, indicating a strong financial position.

As of the review period, Manushi Laghubitta has collected deposits totalling more than NPR 98.78 crore from its 33,718 members. The institution’s efforts to improve asset quality have also shown positive results, with the non-performing loan (NPL) ratio declining from 7.9 percent in FY 2079/80 to 4.46 percent in FY 2080/81. This improvement underscores the institution’s focus on maintaining a healthy loan portfolio and enhancing overall financial stability.

The positive financial performance of Manushi Laghubitta in FY 2080/81 reflects its resilience and commitment to growth, positioning it for continued success in the microfinance sector. The institution’s strong financial indicators and reduced NPL ratio demonstrate its ability to generate sustainable profits while serving its members effectively.

Manushi Laghubitta Reports

18 August 2024, Kathmandu

Kapil Dev Oli’s tenure as a member of the Board of Directors at the Nepal Insurance Authority, the regulatory body overseeing the insurance sector, has officially ended.

Kapil Dev Oli Concludes Tenure

Oli, who served two consecutive terms, was given a grand farewell on the last day of his second term.

Oli, an advocate by profession, was appointed as an expert director on the Insurance Committee on March 15, 2016. He continued his dedicated service in the insurance sector when he was reappointed as the Director of the Insurance Authority on August 3, 2020. Throughout his two terms, Oli made significant contributions to policy-level decisions in the insurance sector, working tirelessly to enhance regulatory frameworks and strengthen the industry.

A permanent resident of Jhapa district, Oli holds a master’s degree in public administration and a bachelor’s degree in law, making him well-equipped for his role as an expert operator in the legal aspects of the insurance sector. His legal expertise has been instrumental in shaping the policies governing Nepal’s insurance industry.

At the farewell event organized by the Insurance Authority, Chairman Surya Prasad Silwal expressed his gratitude for Oli’s invaluable contributions. In his farewell speech, Oli reflected on his eight-year journey within the insurance sector and conveyed his intentions to remain active in the industry, leveraging his experience and expertise to continue making an impact.

Oli’s departure marks the end of a significant chapter in the Insurance Authority’s leadership, but his influence on the sector is expected to endure. As he steps down, the insurance community will closely watch his future endeavours and contributions to the field.

Kapildev Oli’s legacy at the Nepal Insurance Authority serves as a reminder of the critical role that expert leadership plays in the development and regulation of the insurance sector.

Kapil Dev Oli Concludes Tenure

18 August 2024, Kathmandu

Nabil Bank has announced the closure of its shareholder register book on August 23, 2024, in preparation for its upcoming Special General Meeting (SGM) scheduled for September 12, 2024.

Nabil Bank Meeting on Capital Increase

This decision was made during the board of directors’ meeting held on August 11, 2024.

The one-day book closure on August 23 will ensure that shareholders registered by that date are eligible to participate in the SGM. The primary agenda of the meeting will be the proposed increase in the bank’s primary capital. The board of directors has put forth a proposal to raise the primary capital by 8%, a move that is expected to strengthen the bank’s financial foundation and support future growth initiatives.

The proposed capital increase reflects Nabil Bank’s strategic plan to enhance its capital base in line with regulatory requirements and market conditions. This move is likely to bolster the bank’s capacity to expand its operations, improve its competitive position, and sustain its growth trajectory in the increasingly dynamic banking sector.

The SGM will provide a platform for shareholders to discuss and vote on this crucial proposal, which could have significant implications for the bank’s future performance. As the date approaches, stakeholders are advised to keep an eye on further announcements from the bank regarding the details of the meeting and the proposed capital increase.

Nabil Bank’s decision to close the shareholder register and convene a special meeting underscores its commitment to maintaining transparency and engaging with its shareholders on key financial decisions. The outcome of the SGM will be closely watched by investors and market analysts as it could set the tone for the bank’s strategic direction in the coming years.

Nabil Bank Meeting on Capital Increase

18 August 2024, Kathmandu

Nepal Rastra Bank (NRB) is set to withdraw NPR 1 trillion from the banking system on Monday as part of its ongoing liquidity management strategy.

Nepal Rastra Bank to Extract NPR 1 Trillion 

This substantial withdrawal, set to mature on September 8th, is intended to curb excess liquidity within the banking sector and maintain financial stability. The central bank has issued a formal notification, urging banks to participate in this liquidity absorption operation.

This move follows a previous liquidity collection effort on August 14th, when NRB aimed to gather NPR 40 billion. However, banks only proposed to deposit NPR 25.80 billion, and NRB successfully raised NPR 23.6 billion at an average interest rate of 2.99%.

As of August 15th, data reveals that NPR 3 trillion 12 billion is still held by banks through various financial instruments, awaiting settlement with NRB. This significant sum highlights the central bank’s ongoing challenge in managing liquidity within the financial system.

NRB employs a balanced approach to liquidity management, utilizing both repo and reverse repo operations. During periods of liquidity shortage, the central bank injects liquidity into the market through repos. Conversely, in times of surplus liquidity, NRB withdraws the excess through reverse repo operations.

The decision to withdraw NPR 1 trillion underscores the central bank’s proactive stance in addressing the liquidity surplus. By carefully managing the money supply, NRB aims to ensure the stability and resilience of Nepal’s banking system, particularly in light of fluctuating market conditions. This action is a testament to NRB’s commitment to maintaining economic equilibrium and safeguarding the financial sector’s health.

Nepal Rastra Bank to Extract NPR 1 Trillion

18 August 2024, Kathmandu

In a dramatic turn of events, Nepal Finance Company, which was riding high on continuous positive circuit days just a short while ago, has now found itself in the doldrums.

Nepal Finance Company Decline in Investor Interest

Nepal Finance Company Decline in Investor Interest

17 August 2024, Kathmandu

The Federation of Nepal Chamber of Commerce and Industry (FNCCI) has expressed its support for the Ministry of Finance’s decision to include the formation of a high-level Economic Reform Commission in its 100-day program.

Federation of Nepal Chamber of Commerce and Industry

This move is seen as a positive step towards addressing the challenges facing Nepal’s economy and fostering sustainable development.

The FNCCI has long advocated for the establishment of a commission dedicated to coordinating economic reforms. The federation’s proposal to the government emphasized the need for such a body due to the existing lack of coordination among economic sectors, the limited involvement of the private sector in policy-making, and the urgent need to ensure both immediate and long-term economic sustainability. The inclusion of this proposal in the Ministry of Finance’s priorities has been met with appreciation from the business community.

Federation President Chandra Prasad Dhakal expressed gratitude to the Finance Minister and the government for recognizing the importance of this initiative. He highlighted that the formation of the Economic Reform Commission would facilitate better coordination and integration of private sector insights into the national economic agenda, ultimately contributing to sustainable economic growth.

In addition to welcoming the commission’s formation, the FNCCI has proposed a system for its operation that emphasizes efficiency and cost-effectiveness. Dhakal stated that the commission should operate frugally, ensuring that resources are utilized effectively to achieve the desired economic reforms.

The establishment of the Economic Reform Commission is expected to play a crucial role in addressing the structural challenges within Nepal’s economy, paving the way for a more coordinated and sustainable approach to economic development. The FNCCI remains committed to working closely with the government to ensure that the commission fulfills its mandate and delivers tangible benefits for the nation’s economy.

For more updates on economic policies and initiatives, follow us on our social media platforms.

Federation of Nepal Chamber of Commerce and Industry

17 August 2024, Kathmandu

In a strategic move that signals growth and expansion, Rishi Ram Adhikari has been appointed as the new director of Moru Digital Wallet.

Rishi Ram Adhikari Joins Moru Digital Wallet

A leading digital payment platform operated by Pay Nep Pvt Ltd. With this appointment, Moru Digital Wallet is poised to enter a new phase of development, with plans to launch an Initial Public Offering (IPO) shortly.

Adhikari brings a wealth of experience to his new role, having spent over a decade in various business sectors, including educational institutions, corporate management, communication, e-consultation, and book publishing. His diverse background and expertise make him a valuable addition to the Moru Digital Wallet leadership team. In addition to his business acumen, Adhikari is also known for his active involvement in the fields of art and literature, showcasing his multifaceted talents and commitment to cultural enrichment.

Upon his appointment, Adhikari expressed his enthusiasm for the future of Moru Digital Wallet, stating that the company is fully prepared to take the necessary steps towards launching an IPO. This move is expected to enhance the company’s visibility and financial standing, attracting new investors and expanding its market presence. Adhikari’s leadership is anticipated to guide Moru Digital Wallet through the complex process of going public, ensuring that the company is well-positioned for success.

The decision to bring the company to IPO reflects Moru Digital Wallet’s ambition to strengthen its position in the digital payment industry, offering innovative solutions and expanding its user base. As the company moves forward with its plans, stakeholders and customers alike can expect continued growth and the introduction of new services designed to meet the evolving needs of the market.

For further updates on Moru Digital Wallet and its upcoming IPO, stay connected through our social media channels on Facebook, Messenger, WhatsApp, and Twitter.

Rishi Ram Adhikari Joins Moru Digital Wallet

17 August 2024, Kathmandu

Diwakar Paudel, the newly appointed Chief Executive Officer (CEO) of IME Limited.

Diwakar Paudel Appointed CEO of IME Limited

It has officially taken charge, bringing with him a wealth of experience and a clear vision for the future. Paudel, who has been a pivotal figure in the remittance industry for 25 years, steps into his new role following the integration of IME and GME Remit.

Having served as the CEO of GME Remit since its inception, Paudel’s expertise in the sector is expected to drive IME Limited towards greater success in a highly competitive market. Upon taking charge, Paudel expressed his commitment to enhancing the quality and reach of IME’s remittance services. He emphasized the importance of adapting to the evolving needs of the market by offering more streamlined and expansive remittance solutions.

A key aspect of Paudel’s leadership vision is the acceleration of digital transformation within IME. He has identified digital remittance as the main priority, highlighting the need to simplify and technologically advance the remittance process. Paudel believes that by focusing on digital innovation, IME can make its services more agile, accessible, and convenient for customers, thereby solidifying its position as a leader in the industry.

In addition to advancing digital remittance, Paudel is also focused on expanding the scope of IME’s operations. He plans to explore new avenues for mobilizing remittance funds in the productive sector, which he sees as a crucial step towards increasing national income and contributing to job creation. His leadership is expected to bring a renewed emphasis on integrating technological advancements with customer-centric services.

As Paudel takes the helm at IME, the industry watches with anticipation, expecting significant strides in both service quality and innovation under his guidance.

For more updates on IME Limited and its services, follow us on Facebook and Messenger.

Diwakar Paudel Appointed CEO of IME Limited

17 August 2024, Kathmandu

Standard Chartered Bank has introduced new interest rates, effective from 1st August, reflecting a strategic adjustment to its financial offerings.

Standard Chartered Bank Reduces Base Rate

The bank has reduced the base rate to 6.38 percent, alongside changes in interest rates for term deposits and savings accounts.

For August, Standard Chartered Bank has decreased the interest rate for institutional term deposits, now offering 4.50 percent, down from the 4.75 percent provided in July. Meanwhile, the interest rate for individual term deposits remains steady at 7 percent. The bank has also set an interest rate of 8 percent for remittance accounts, maintaining its commitment to providing competitive rates for those receiving remittances.

In addition to these changes, the bank has adjusted its interest rates for ordinary savings accounts. In August, the minimum interest rate for ordinary savings accounts is set between 3 percent and 4.05 percent, with a rate of 5.05 percent for remittance savings accounts. This is a slight reduction from the rates offered in July, where ordinary savings accounts received between 3.10 percent and 4.15 percent, and remittance savings accounts received 5.15 percent.

The bank’s three-month average base rate has now been established at 6.38 percent. Standard Chartered Bank will set a premium rate of up to 5 percent on top of this base rate, providing an opportunity for customers to benefit from competitive interest rates on their loans and advances.

These updates highlight Standard Chartered Bank’s responsive approach to current economic conditions, ensuring that its interest rate offerings remain aligned with market trends. Customers with term deposits, savings accounts, and remittance accounts are encouraged to review these changes and consider how they may impact their financial strategies.

For more detailed information on the new interest rates or to discuss the best options for your financial needs, customers are advised to visit their nearest Standard Chartered Bank branch or contact customer service.

Standard Chartered Bank Reduces Base Rate

16 August 2024, Kathmandu

Global IME Bank has announced adjustments to its interest rates, notably reducing the rates on ordinary savings accounts while keeping term deposit rates stable.

Global IME Bank Lowers Interest Rates

These changes came into effect on 17th August, reflecting the bank’s latest strategy in response to market conditions.

For August, Global IME Bank will continue to offer up to 5.25 percent interest for institutional term deposits and 6.25 percent for individual term deposits. Notably, the bank has also maintained its policy of offering an additional 1 percent interest on remittance accounts. This consistency in term deposit rates provides stability for customers seeking to lock in their investments at competitive rates.

However, the bank has made a significant reduction in the interest rates offered on ordinary savings accounts. In August, the bank has set a new minimum interest rate range of 3 percent to 3.50 percent on these accounts. This marks a slight decrease from the 3.05 percent interest rate that was previously offered in July. Meanwhile, the Global Remit Savings Account will now provide 4.5 percent interest, which remains an attractive option for account holders who regularly receive remittances.

The bank’s decision to lower interest rates on savings accounts while keeping term deposits stable reflects a strategic approach to managing its interest rate offerings. For savers, this change may prompt a re-evaluation of where to park their funds, especially for those relying on ordinary savings accounts for returns.

Despite the reduction in savings interest rates, Global IME Bank continues to offer competitive rates on other deposit accounts, ensuring that customers have a range of options to meet their financial goals. Customers are advised to review these changes and consider their impact on personal savings strategies.

For more information and to discuss the best options for your savings and deposits, visit any Global IME Bank branch or contact their customer service department.

Global IME Bank Lowers Interest Rates

17 August 2024, Kathmandu

Asian Life Insurance has announced the sale of 530,000 shares from its founder group, offering a significant opportunity for investors looking to acquire a substantial stake in the company.

Asian Life Insurance Announces Founder Shares Sales

The shares have been priced at Rs 275 per share, making them an attractive proposition for those interested in the insurance sector.

The company has opened the bidding process since [Start Date], inviting interested investors to submit their applications at the central office located in Maiti Devi, Kathmandu. Investors have until the 11th of August to make their bids, offering a limited window for participation in this significant share sale.

A key requirement set by the company is that investors must apply for a minimum of 200,000 shares. This stipulation highlights the company’s intent to attract serious investors with substantial capital, ensuring that the shares are consolidated among a select group of stakeholders.

This move by Asian Life Insurance is likely to draw attention from both individual and institutional investors, given the company’s established presence in the market and the strategic importance of acquiring a significant shareholding. The sale of founder shares typically signals confidence in the company’s prospects, potentially offering good returns for investors who can secure a stake at the offered price.

Investors are encouraged to act swiftly, as the bidding period is brief and the opportunity to acquire a large portion of shares in a leading insurance company like Asian Life may not present itself again soon.

For further details and to apply, interested parties should visit the central office in Maiti Devi, Kathmandu, before the deadline.

Asian Life Insurance Announces Founder Shares Sales

16 August 2024, Kathmandu

Laxmi Sunrise Bank has announced that it will keep its fixed deposit interest rates unchanged for August, continuing the stability observed over the past three months.

Laxmi Sunrise Bank Maintains Stable Fixed Deposit Rates 

The new interest rates, effective from August 1, also include a reduction in loan interest rates.

For term deposits in August, the bank has set an interest rate of 5.50 percent for institutional depositors and 6.50 percent for individual depositors. This maintains the rates from June and July, despite a previous increase in May when the rates were 6 percent for institutions and 7 percent for individuals. Additionally, the interest rate for remittance accounts is set at 7.50 percent, unchanged from the previous months.

The bank has adjusted the interest rates for ordinary savings accounts to a minimum of 3 percent and a maximum of 5 percent. The interest rate for remittance savings accounts has been set at 6 percent. These rates reflect a slight decrease from July when the ordinary savings rate was 3.05 percent to 5.05 percent, and the remittance savings rate was 6.05 percent.

Laxmi Sunrise Bank’s base rate has been reduced to 8.70 percent from the previous 8.90 percent in July, resulting in a decrease in loan interest rates. The spread rate is currently set at 4 percent. As the base rate decreases, the bank’s loan interest rates will adjust automatically, providing more favourable borrowing conditions for customers.

These adjustments reflect the bank’s commitment to offering competitive terms and responding to market conditions, aiming to benefit both depositors and borrowers.

Laxmi Sunrise Bank Maintains Stable Fixed Deposit Rates

16 August 2024, Kathmandu

Nabil Bank has announced that it will keep its interest rates unchanged for the third consecutive month, effective August 17.

Nabil Bank Maintains Stable Interest

This decision continues the stability seen since June, providing consistent terms for depositors and borrowers.

For August, Nabil Bank has set an interest rate of 7 percent for individual depositors and 6 percent for institutional depositors. The interest rate for remittance accounts remains at 8 percent. These rates are consistent with those announced in June, representing a decrease from the previous rates set in May, which were 6.75 percent for individuals, 5.75 percent for institutions, and 7.75 percent for remittances.

The bank has also maintained the interest rate on ordinary savings accounts at 3 percent, the same rate that was set for July. This stability in savings rates aims to provide reliable returns for account holders.

Nabil Bank’s base rate stands at 7.63 percent, with a prepayment rate of 3.99 percent. The bank indicated that loan interest rates will be revised automatically based on changes in the average base rate over the past three months, effective from the first day of each month. Interest rates for consortium loans will be determined by consortium meetings, and a penalty interest rate of 2 percent will apply for late payments.

By maintaining its interest rates steady, Nabil Bank seeks to offer stability and predictability to its customers, supporting effective financial planning and decision-making.

Nabil Bank Maintains Stable Interest

16 August 2024, Kathmandu

Nepal Bank, a government-owned financial institution, has reduced its interest rates effective August 17.

Nepal Bank Announces Interest Rate Reduction

The new rates affect various deposit accounts and are aimed at offering more competitive terms for customers.

For term deposits, the bank will now provide an interest rate of 4 percent for institutional depositors and 5.25 percent for individual depositors. This marks a decrease from the previous rates in July, which were set at 4.25 percent for institutions and 6.25 percent for individuals. Additionally, the interest rate for remittance accounts has been reduced to 6.25 percent from 7.75 percent.

The bank has also lowered the interest rates for ordinary savings accounts. In August, the rates will range from a minimum of 3.01 percent to a maximum of 5.01 percent, compared to the July rates of 3.20 percent to 5.20 percent.

The reduction in interest rates is accompanied by a decrease in the bank’s base rate, which has been adjusted from 7.88 percent to 7.87 percent. The bank allows for a premium of up to 5 percent on the base rate, with the current spread rate set at 3.95 percent.

These changes are part of Nepal Bank’s strategy to align its offerings with market conditions and provide more favourable options for depositors and borrowers alike. Customers are encouraged to review the new rates and consider how these adjustments might benefit their financial planning.

Nepal Bank Announces Interest Rate Reduction

16 August 2024, Kathmandu

NIC Asia Bank has announced a reduction in its interest rates effective August 17. The new rates reflect a decrease in both term deposit and savings account interest rates, offering better terms for customers.

NIC Asia Bank Lowers Interest Rates

NIC Asia Bank Lowers Interest Rates

16 August 2024, Kathmandu

KPMG Assurance and Consulting Services Pvt Ltd, a leading Indian audit firm, has been selected to conduct a comprehensive audit of 10 major commercial banks in Nepal.

KPMG to Audit Major Nepali Banks

The decision was announced by Nepal Rastra Bank, which chose KPMG after an international tender process in line with its agreement with the International Monetary Fund (IMF).

Initially, five external audit firms were shortlisted for the project, including Deloitte Financial Advisory from the Netherlands, CAC (PricewaterhouseCoopers), SRBA & BK Agarwal Chartered Accountants, KPMG Assurance & Consulting from India, and KPMG Islamabad from Pakistan. Among these, KPMG Assurance was selected based on its technical qualifications, experience, and capabilities, according to Dr. Dilli Ram Pokhrel, Assistant Spokesperson of Nepal Rastra Bank.

KPMG will review and evaluate the loan portfolios of the selected banks, which have been identified for their substantial loan disbursements. The audit firm is expected to commence its work shortly, with the financial proposal set to be finalized on September 1. This audit aims to ensure compliance with IMF conditions and enhance transparency in the financial sector.

The 10 banks under review are notable for their significant loan distributions. They include Nabil Bank, Global IMAE Bank, Nepal Investment Mega Bank, Kumari Bank, NIC Asia Bank, Lakshmi Sunrise Bank, National Commercial Bank, Himalayan Bank, Prabhu Bank, and Krishi Bikas Bank. According to data from the fourth quarter of the last fiscal year, these banks collectively manage a substantial loan portfolio, with Nabil Bank leading with investments amounting to NPR 3.73 trillion.

KPMG’s audit will scrutinize these banks’ loan investments, aiming to provide a thorough assessment and ensure adherence to financial regulations and best practices.

KPMG to Audit Major Nepali Banks