Global IME and CTBN Merge?

I read news on merger of Global IME Bank and Commerz and Trust Bank, the big merger till now. I am confused whether it occurs. But I have best wishes for the same.

Chhath Puja

There will be two-day (not in terms of public holiday) Chhath this year, according to Pundits.

Tihar

We celebrated Laxmi Puja yesterday. Today is गोबर्द्धन पूजा । Tihar is mainly for Laxmi Puja and Brother-Teeka. My brother Nitesh is in his hometown, Galtar, Udaypur. I am with my elder father's sons-Keshav and Peshal now. They are lovely and amicable people. Some more tomorrow...

IPO of Sanima Mai and Kalika Microcredit Development Bank

The share registrar has made public the share issues of Sanima Mai Hydropower and Kalika Microcredit Development today. You may find your results here

Tax Fair

The Inland Revenue Department (IRD) is scheduled to organise “Tax Fair” in Kathmandu with an aim of bringing additional taxpayers into the tax net. The tax authority will add new taxpayers and disseminate information about taxation to the general public during the event. It is believed that the government is focussing on increasing the number of rental tax payers. The government has targeted to raise Rs 2.31 billion in rental revenue this fiscal year. Sharma said the IRD was on track on meeting the target.

Although I'm not a mother,

I have no doubt it has to be the hardest job on earth.

Some say little baby souls choose their parents,

and I must have been a wise baby soul because

I chose a wonderful momma.

She taught me to be a

strong

independent

kind

creative

thoughtful

passionate

&

loving

woman.

                                                            For this, I will forever be grateful.

Thank you, Mom.

                                                                              I love you.

Nepal's Position in Doing Business Index

Nepal has slightly improved its position from 108th last year to 105th this year in terms of business friendly environment this year compared to the last year, according to the Doing Business Index-2014 released by the International Finance Corporation and the World Bank. Nepal´ ranking in ´Starting a Business´ topic has also gone up to 97, compared to 103 last year. 

The report said the ranking was achieved by reducing administrative processing times at the company registrar and establishing data links between agencies involved in the incorporation process. Nepal has made registration process easier by introducing online registration.

Similarly, in terms of helping create a better environment for local entrepreneurs, Nepal ranks third in the eight South Asian economies surveyed, behind only Sri Lanka and the Maldives. 

According to the report, South Asia leads the world in implementing business regulatory reforms in 2012/13. Six of eight economies in the region completed 11 reforms simplifying the process of starting a business, strengthening access to credit, or easing the process for paying taxes. 

“A congenial business environment is important for Nepal´s economic growth,” Val S Bagatsing, IFC resident representative in Nepal, said, adding that they were encouraged by the rapid pace of reform in Nepal. “It will help the country attract more investment and create jobs.”

Singapore topped the global ranking for the seventh consecutive year.

Citizens Bank Won

Citizens Bank International claimed the title of Soaltee Crowne Plaza Super Sixes corporate cricket tournament, defeating Embassy of India by 17 runs in the final played at TU Cricket Ground, Kirtipur. Electing to bat first after winning the toss, Citizens Bank made 77/4 in the allotted five overs as man-of-the-series Bishal Bhattarai scored an unbeaten 48 runs off 17 deliveries. Bhattarai struck four sixes and four fours. Nabin Karki scored four runs. BR Launde, Sohan Patwal and Pankaj Singh claimed one wicket each for the Embassy team. Chasing the big target, the Embassy team could manage only 60/3. 

Non Performing Loans of Nepali Banks

A World Bank recent report unveils that Non-performing loans (NPL) of commercial banks have decreased to a 10-year low The report titled “Nepal Development Update” states that NPL of commercial banks came down to 2.5 per cent in FY 2012-13, the lowest in a decade. 

Loans not repaid timely are called NPL in financial sector. A sum of borrowed money upon which the debtor has not made his or her scheduled payments for at least 90 days. A nonperforming loan is either in default or close to being in default. If the debtor starts making payments again on a nonperforming loan, it becomes a re-performing loan.

Six banks reported NPL more than that of 3 per cent, of which only two had NPL in excess of 5 per cent. One of them is state-controlled Agriculture Development Bank Ltd. Eight banks recorded NPL below 1 per cent. Most of the remaining banks had NPL between 1 and 2 per cent. According to the report, two state-owned banks—Nepal Bank Limited and Rastriya Banijya Bank—appear to have achieved a significant turnaround in loan recovery.

The report said the banks’ loan exposure to real estate has decreased to historically low levels of 14.9 per cent from previous fiscal’s 17.1 per cent. 

All banks have met the minimum CAR of 10 percent (plus 1 percent buffer capital) except two state-controlled banks—Nepal Bank Limited and Rastriya Banijya Bank.

Their CAR also improved with NBL maintaining a CAR at negative of 0.5 percent from the negative of 5.5 percent a year ago, while RBB showing a positive CAR of 3.3 percent from a negative of 9.3 percent a year ago.

Banking access to Nepali people increasing

A recent report revealed that Nepal's 43 per cent population has access to banking services. This figure is based on the number of deposit accounts in commercial banks, development banks and finance companies compared to the population size. The figure may increase further if the deposit accounts with cooperatives, micro-finance and other financial intermediates are taken into account. In 2006, only 26 percent population had access to banking services.

The number of deposit accounts in A, B and C class banks and financial institutions (BFIs) stands at 11.40 million, according to the Nepal Rastra Bank (NRB). The number is 43 percent of the total population of 26.49 million as per Census 2012.

As the number of branches of A, B and C class financial institutions has reached 2469 (Mid-August), number of people opt for formal financial channel to economic transactions. The central bank has been encouraging BFIs to reach non-banked areas by issuing a directive which says banks can open their branch in the Kathmandu valley only after opening three branches outside the Kathmandu valley.

ATM Fraud

Technoligy-enabled banking frauds are being found committed in new ways in recent years and the trend is on the rise. The Nepal police arrested three people involved in recent ATM (automated teller machine) fraud case. The Central Investigation Bureau of Nepal Police has detained Kewal Pratap Rana of Lalitpur, Bir Bahadur Bohora of Badagaun, Salyan and Naresh Kumar Agrawal of Naxal, Kathmandu on the charge of withdrawing money from other people’s accounts by using fake ATM cards.

The bankers in Nepal are not in position to curbing the fraud case because looters are superior than the security measures applied by the banks. It is also difficult to resolve the issue as there is involvement of the bank staffers. There were a series of thefts at varied Banking and Financial Institutions including Kist Bank, H&B Development Bank, Himalayan Bank and Nabil Bank with the involvement of their present or former staffers.

Nepal Rastra Bank and the police have blamed a weak security system in the banking industry for the increase in such incidents. The central bank has issued many circulars ordering BFIs to strenghren their security system  and take measures to reduce operational risks. Recently, it asked them to maintain separate assessments of operational risks and submit a report.  

NRN Hotel in Nepal

The Non-Resident Nepalis (NRNs) are to collectively establish a deluxe five-star hotel in association with an international chain in Nepal.  The venue of the proposed hotel is yet to be finalized. 

The NRN Association continues to lobby for investment-friendly environment in the country.  The first meeting of newly elected executives of the NRNA on Friday has also decided to construct its own office building. The executive committee has made commitment of collecting Rs 20 million for the building. Ghale has pledged Rs 10 million for the project. 

A two day international convention and a two-day global conference of the NRNs concluded with 14-point declaration on Tuesday. 

New Bank Expansion Criteria Revised

Nepal Rastra Bank, the central bank of Nepal has changed the provisions regarding establishment of new bank branches or head offices in the Kathmandu valley. Henceforth, banks and financial institutions will have to open three branches outside the valley before they will be allowed to open one branch in the valley. Earlier, they were allowed to set up branches in the valley after opening two branches elsewhere in the country.

Among the three branches required to be opened outside the valley, one branch must be established in one of the 14 districts identified by the central bank as having a very low presence of banks and other financial institutions. These districts are Bhojpur, Okhaldhunga, Manang, Rukum, Salyan, Jumla, Mugu, Humla, Kalikot, Dolpa, Jajarkot, Bajhang, Bajura and Darchula. Previously, this list contained 17 districts. Similarly, of the two remaining branches, at least one should be located outside the perimeter of district headquarters or municipalities. 

Compulsory Lending for B and C Class

Nepal Rastra Bank haas ordered development banks and finance companies to raise the level of their lending to the productive sector to 15 and 10 per cent respectively by mid-2016. The productive sector includes agriculture, energy, tourism and small and cottage industries. The provision was only for commercial banks previously.

The provision of compulsory lending to the productive sector was made to ensure sustainable investment in the productive sector so that it would create employment opportunities within the country and aid poverty alleviation. Now the financial institutions have to prepare annual action plans to implement the directive and set half-yearly targets in a way that can be monitored. 

NRB has already directed commercial banks to increase their lending to the productive sector to 20 per cent by mid-July 2015. The central bank has also increased the required level of lending to agriculture and energy to 12 per cent from the earlier 10 per cent for commercial banks. However, A class banks have to maintain their lending to these two sectors at 10 per cent within the current FY according to the latest directive. NRB has also defined agriculture sector loan, energy loan, tourism sector loan, cottage and small industry loan which have been categorized as productive sector loans. 

Dr Chitra Wagle passed away

Chitra Prasad Wagle, who was undergoing treatment for appendix cancer at Dhapasi-based Grande International Hospital passed away today (12:05 pm). Earlier, in August, Wagle, was discharged from New Delhi-based Rajiv Gandhi Cancer Hospital, after 14 months long treatment.
Originally from Murgiya of Rupandehi district, Dr Wagle is credited for initiating round-the-clock service including emergency and other facilities in  the Arghakhanchi District Hospital. He was awarded the ‘Excellence in Health Service Award’ as a recognition of his round-the-clock dedication towards providing health services to the rural Nepali community.

This is a very tragic loss. Life is so mortal. It is very shocking and I have yet to come out of it. May God, the ultimate Master give courage and strength to the family, as I pray to God and join everyone around the world in these times of difficulties/pains.

My heart felt condolence to the family.

Educational Tip

Somewhere I read; I remember today it. It reads like:

Do not educate your child to be rich.  Instead educate your child to be happy, so, when he or she gorws up, he or she will know the value of things, NOT the price!