KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
In the fiscal year 2080/81, Nepali commercial banks collectively generated approximately Rs 56.5 billion in profits over an 11-month period, from mid-July 2023 to mid-May 2024.
Leading the earnings were Nabil Bank with Rs 6.37 billion, followed by Global IME Bank and Nepal Investment Bank with Rs 5.09 billion and Rs 4.38 billion, respectively.
Meanwhile, Madhesh Province utilized 55.75% of its allocated budget, showing an increased spending pace of 30.22% in June alone compared to the cumulative 25.53% from July to May.
Nepal Rastra Bank also authorized Nepali payment system operators to engage in global digital retail payments through QR code systems, requiring prior central bank approval for international collaborations.
Commercial banks earn nearly Rs 56.5 billion in profit over 11 months
Commercial banks have accumulated approximately Rs 56.5 billion in profit during the first 11 months of the current fiscal year, spanning from mid-July 2023 to mid-May 2024.
Collectively, twenty commercial banks reported a profit of Rs 56.48 billion during this period. Nabil Bank led with the highest profit of Rs 6.37 billion, followed by Global IME Bank and Nepal Investment Bank with profits of Rs 5.09 billion and Rs 4.38 billion, respectively.
As of mid-May, Prime Bank registered a profit of Rs 3.56 billion, while Everest Bank earned Rs 3.31 billion. Nepal Bank recorded the lowest profit among these banks, earning Rs 1.08 billion over the 11-month period.Due to high liquidity, the profits of the banks have been decreasing.
Madhesh Province expenditure: 55.75 percent budget spent in FY 2080/81
In the fiscal year 2080/81, the Madhesh provincial governmeznt utilized only 55.75 percent of its total budget allocation.
Notably, the pace of expenditure picked up significantly in June-mid-July, with 30.22 percent of the budget being spent during that month alone, compared to the cumulative expenditure of 25.53 percent.
The provincial government had earmarked a total budget of Rs. 44,110,463,200 for both current and capital expenditures. Of this amount, Rs. 24,059,337,839 has been expended, which accounts for 55.75 percent of the allocated budget.
As of now, Rs. 18,538,858,000 has been allocated, out of which 50.15 percent, equivalent to Rs. 9,296,922,740, has been utilized.
Nepal Rastra Bank opens digital retail payments worldwide
Nepal Rastra Bank has authorized Nepali payment system operators to engage in digital retail payments worldwide. This includes the establishment of quick response (QR) code payment systems through agreements between Nepali operators and their counterparts in other countries.
A circular issued on June 27 introduced the merchant-to-person (M2P) payment system, enabling operators to collaborate internationally and launch services accordingly.
However, prior approval from the central bank is mandatory before finalizing any memorandum of understanding.
NRB holds foreign exchange values steady
The announcement by Nepal Rastra Bank (NRB) of Sunday’s foreign currency exchange rates highlights stability in major currency values compared to Saturday’s rates. The US Dollar, Euro, British Pound, Australian Dollar, Kuwaiti Dinar, and Bahrain Dinar all maintain their previous values.
Specifically, the US Dollar holds a buying rate of 133 rupees 36 paisa and a selling rate of 133 rupees 96 paisa, mirroring yesterday’s figures. Similarly, the Euro is priced at 145 rupees 24 paisa for purchase and 145 rupees 89 paisa for sale, with the British Pound fetching 172 rupees 88 paisa for buying and 173 rupees 66 paisa for selling.
The Australian Dollar’s rates are set at 90 rupees 33 paisa and 90 rupees 74 paisa, respectively. Meanwhile, the buying rate for the Kuwaiti Dinar is 436 rupees 44 paisa, with a selling rate of 438 rupees 41 paisa, and the Bahrain Dinar is priced at 353 rupees 80 paisa for purchase and 355 rupees 39 paisa for sale.
These consistent rates underscore a stable trading environment as announced by NRB for today’s transactions.
(Compiled and prepared by Srija Khanal)
Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.
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