KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
On Tuesday, the Nepal Stock Exchange (NEPSE) closed lower, dropping by 6.32 points (0.23%), closing at 2,669.82, after a decline of 12.84 points in the previous session.
The market fluctuated between 2,676.1 and 2,694.85, with total turnover reaching Rs. 4.41 billion.
Meanwhile, gold prices saw a sharp rise of Rs 2,100 per tola, reaching Rs 152,200, following a drop last week, underscoring the volatility of the precious metal market in Nepal.
The silver price also increased by Rs 60, reflecting broader market dynamics.
In the banking sector, Nepal Rastra Bank reported strong net profits for commercial banks, led by Nabil Bank at Rs 2.69 billion, while the development banks sector showed mixed results, with several institutions, including the Agriculture Development Bank, posting losses.
ICFC Finance announced a 5.2632% cash dividend, pending approval, and Rastriya Banijya Bank partnered with Nepal Clearing House to facilitate cross-border digital payments.
In a significant corporate leadership move, Standard Chartered Bank Nepal appointed Gorakh Rana as its first Nepali CEO, marking a historic moment for the institution.
This diverse financial landscape illustrates the ongoing dynamics in Nepal’s economy, with shifts in both the stock market and banking sectors, alongside developments in digital payment infrastructure.
NEPSE closes lower, dropping 0.23 percent
The Nepal Stock Exchange (NEPSE) on Tueday declined by 6.32 points (0.23%), ending at 2,669.82, following a loss of 12.84 points in the previous session.
The market opened at 2,676.1 and experienced fluctuations throughout the day, reaching a high of 2,694.85 and a low of 2,709.58.
Total turnover amounted to Rs. 4.41 billion, with 52,705 transactions involving 8,768,566 shares from 303 companies.
Gold prices up by Rs 2,100 per tola today
The surge in gold prices, which rose by Rs 2,100 per tola on Tuesday, highlights the volatility of the precious metal market in Nepal.
The price of gold reached Rs 152,200 per tola on Tuesday, following a smaller increase of Rs 400 on Monday.
This recent uptick comes after a significant drop of Rs 18,500 per tola last week, demonstrating the fluctuating nature of gold prices.
Additionally, silver prices have also seen an increase, rising by Rs 60 to reach Rs 1,925 per tola.
These price fluctuations reflect global market dynamics, investor sentiment, and potential impacts on local markets and consumers.
NRB releases financial performance report for commercial and development banks
Nepal Rastra Bank has published its financial performance report for commercial and development banks for the first four months of the fiscal year 2081/82, ending in the Nepali month of Kartik.
The total net profit for commercial banks amounted to Rs. 22.29 billion. Nabil Bank led the sector with a net profit of Rs. 2.69 billion, surpassing Global IME Bank, which earned Rs. 2.11 billion.
Nepal Investment Mega Bank ranked third with a profit of Rs. 1.82 billion. Other banks, such as Prime Commercial Bank and Kumari Bank, also reported strong earnings.
On the other hand, the Agriculture Development Bank recorded a net loss of Rs. 22.77 Crores. The development banking sector achieved a collective net profit of Rs. 2.03 billion, although eight out of the 17 development banks reported losses.
ICFC Finance announces 5.2632% cash dividend
ICFC Finance Limited (ICFC) has announced a 5.2632% cash dividend for the fiscal year 2080/81.
The decision was made during the 338th meeting of the board of directors on the Nepali month of Mangsir 25, where it was agreed to distribute the dividend based on a paid-up capital of Rs. 1.18 billion.
The proposed cash dividend amounts to Rs. 6.22 crores.
However, the dividend will only be distributed once it receives approval from the central bank and is endorsed at the company’s upcoming Annual General Meeting (AGM).
Rastriya Banijya Bank partners with Nepal Clearing House
Rastriya Banijya Bank Limited has teamed up with Nepal Clearing House Limited (NEPALPAY) and Alipay Plus to facilitate cross-border payments for NEPALPAY QR merchants.
This collaboration allows merchants to receive payments from customers across 48 countries, including China, Thailand, Hong Kong, Malaysia, and Indonesia.
Tourists from these countries can now conveniently use their local digital wallets to make payments in Nepal, streamlining digital transactions.
Merchants using NEPALPAY QR can expand their online businesses, while those who have not yet adopted the service can visit their bank branch to get set up.
With 294 branches nationwide, the bank offers a range of digital banking services, including ATMs, internet banking, mobile banking, and more.
Standard Chartered Bank Nepal appoints first Nepali CEO
The appointment of Gorakh Rana as the first Nepali CEO of Standard Chartered Bank Nepal marks a significant milestone in the bank’s history.
Rana, who has been with the bank since 1996 and most recently served as Deputy CEO, takes over from Anirbhan Ghosh Dastidar following the completion of his four-year tenure.
Rana’s experience in leadership roles within the bank positions him well to steer the institution forward. His appointment also reflects a broader trend of local talent taking the helm of major international institutions in Nepal.
(Prepared by Srija Khanal)
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