KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s current economic picture reflects cautious recovery amid persistent structural pressures, with mixed signals across markets, finance, trade, and public services. The stock market’s marginal decline and uneven sectoral performance point to weak investor confidence despite selective gains, while rising gold and silver prices suggest heightened risk aversion and volatility. On the positive side, a gradual rebound in private-sector lending—particularly in housing loans—indicates improving demand supported by accommodative monetary policy and excess bank liquidity.
Corporate actions remain mixed, with some financial institutions withholding dividends due to capital and regulatory considerations, while others reward shareholders and pursue capital expansion through IPOs and public share issues. Meanwhile, sharp growth in imports, disruptions in cross-border trade, and the suspension of health insurance services due to fiscal delays highlight ongoing vulnerabilities in trade management, public finance, and service delivery. Overall, the data suggest an economy stabilizing unevenly, where policy support is fostering pockets of growth but broader confidence and institutional effectiveness remain fragile.
NEPSE slips marginally as sectoral performance remains mixed
The Nepal Stock Exchange (NEPSE) index edged down by 5.54 points on Monday to close at 2,635. Trading activity included nearly 124 million shares of 333 listed companies through 78,808 transactions, generating a turnover of Rs 1.47 billion. While development banks, hotels and tourism, manufacturing, and mutual funds posted modest gains, most other sectors ended in negative territory. Declines were led by trading, microfinance, finance, banking, and investment sub-indices. SY Panel Nepal Limited and Shreenagar Agritech Industries Limited hit upper price limits, whereas Super Madi Hydropower Limited recorded the steepest fall of 4.24 percent.
Gold and silver prices climb sharply in domestic market
Gold prices rose by Rs 4,100 per tola on Monday to reach Rs 274,700, while silver increased by Rs 205 per tola to trade at Rs 5,195. The surge reflects ongoing volatility in precious metal prices in the domestic market.
Bank lending to private sector shows signs of recovery
Private sector loan disbursement has begun to pick up after a prolonged slowdown. According to Nepal Rastra Bank, banks disbursed Rs 3.7 billion in loans during Mangsir alone, pushing total lending for the first five months of the fiscal year past Rs 10.2 billion. Although credit flow remains modest compared to previous years, the recent uptick suggests improving demand amid ample liquidity in the banking system.
Janautthan Samudayik Laghubitta decides against dividend distribution
Janautthan Samudayik Laghubitta Bittiya Sanstha has announced that it will not distribute dividends for the last fiscal year. A board meeting held on January 10 approved the financial statements for FY 2081/82 and resolved not to provide any form of dividend to shareholders. The institution stated that the approved financial reports will be disclosed following clearance from Nepal Rastra Bank ahead of the upcoming annual general meeting.
RSDC Laghubitta puts 48,804 promoter shares on sale
RSDC Laghubitta Bittiya Sanstha has opened the sale of 48,804 promoter shares owned by three promoter shareholders. Both individuals and institutions are eligible to apply. Interested buyers must submit sealed bids directly to the company’s office in Butwal, with share prices to be determined by the sellers.
Final day to apply for Ridgeline Energy’s IPO for locals
Monday marked the deadline for local residents to apply for Ridgeline Energy Limited’s IPO. The company has issued 1.185 million shares worth Rs 118.5 million to residents of the project-affected area, out of a total public issue of 2.607 million shares. Eligible applicants can apply for between 10 and 50,000 shares through designated offices in Gorkha and Kathmandu, partner bank branches, or the company’s online platform.
Diprox Microfinance approves 10% bonus shares and 5% cash dividend
Diprox Microfinance Financial Institution Limited approved a 10 percent bonus share and a 5 percent cash dividend at its 24th Annual General Meeting held in Chitwan. Following the bonus issuance, the institution’s paid-up capital has reached Rs 2.05 billion. Several directors were elected unopposed, and shareholders discussed the annual report and financial performance.
Himalayan Life Insurance opts not to pay dividends
Himalayan Life Insurance Limited has decided not to distribute dividends from its accumulated profits of FY 2081/82. The decision was taken at a board meeting on January 9, which also resolved to submit the company’s financial statements to the Nepal Insurance Authority for approval.
TUTH to suspend health insurance services over unpaid government dues
Tribhuvan University Teaching Hospital has announced it will suspend all health insurance services from Magh 1, citing prolonged delays in government reimbursements. The hospital said unpaid claims exceeding Rs 40 million and rising monthly expenses have made it financially unviable to continue services under the scheme.
Tomato imports through Mechi customs jump over ninefold
Tomato imports via Mechi Customs surged by 932 percent in the first five months of FY 2082/83. Imports from India totaled 267,652 kg worth Rs 6.85 million, generating Rs 827,300 in customs revenue. Officials also reported a rise in overall vegetable imports during the same period compared to last fiscal year.
Sagarmatha Lumbini Insurance holds anti–money laundering awareness program
Sagarmatha Lumbini Insurance Company organized an interaction and refresher session on asset laundering prevention for its founder and core shareholders. The program, attended by board members and senior management, featured a briefing by the Nepal Insurance Authority on regulatory frameworks and compliance requirements.
Bhaktapur chamber elects new leadership for two-year term
The Bhaktapur Chamber of Commerce and Industry has elected a 24-member executive committee led by Krishnamurari Nyaupane. The new team was chosen during the chamber’s 38th annual general meeting, with key leadership positions filled through elections and unopposed selections.
Tatopani border trade halted after fire in China’s Nyalam-Khasa area
Trade through the Tatopani border point has been completely suspended following a major forest fire in China’s Nyalam-Khasa region. Chinese authorities halted all cross-border movement due to safety concerns, leaving cargo containers worth millions stranded and worsening difficulties for traders reliant on this route.
Hotel Garima announces Rs 40 crore public share issuance
Hotel Garima Limited, which owns the five-star Soaltee Westend Itahari, has announced plans to issue 4 million shares worth Rs 40 crore to the public. Laxmi Sunrise Capital has been appointed as issue manager, marking a significant step toward expanding hospitality investment in Koshi Province.
Personal home loans surge despite slow overall credit growth
Personal housing loans have increased sharply after Nepal Rastra Bank introduced policy incentives, including higher loan limits and relaxed loan-to-value ratios. By Mangsir, banks had disbursed over Rs 444 billion in home loans, with lending under the Rs 20 million category more than doubling compared to last year.
Shuklaphanta municipality collects over Rs 7.14 million in revenue
Shuklaphanta Municipality raised more than Rs 7.14 million in internal revenue during the first half of FY 2082/83. Most of the revenue came from business taxes, land revenue, house rent tax, and ward-level collections, according to municipal officials.
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