KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The recent report highlighting a 21.63% net profit increase among Nepal’s commercial banks in the first quarter of fiscal year 2081/82 underscores the resilience and growth potential of the banking sector.
With a total profit of Rs 16.23 billion, the performance was buoyed by significant gains from Nabil Bank, Global IME Bank, and Siddhartha Bank, which achieved remarkable growth rates.
However, the mixed results, with some banks experiencing declines, particularly NIC Asia’s staggering 89.06% drop, reveal the varying challenges within the sector.
This disparity reflects broader economic pressures and competition in the market, emphasizing the need for strategic management.
As the NEPSE index faced a slight decline, alongside soaring gold prices and thriving beekeeping ventures, it becomes evident that while some sectors are flourishing, others are grappling with instability, creating a complex economic landscape in Nepal.
Nepal’s commercial banks achieve 21.63 percent growth
Nepal’s commercial banks reported a collective net profit increase of 21.63% in the first quarter of fiscal year 2081/82, reaching Rs 16.23 billion.
Among 20 banks, 12 experienced profit growth, with Nabil Bank leading at Rs 2.05 billion (up 39.97%).
Global IME Bank and Nepal Investment Mega Bank followed with profits of Rs 1.51 billion and Rs 1.46 billion, respectively. Siddhartha Bank had the highest profit increase at 791.46%, while Laxmi Sunrise Bank saw a growth of 420.53%.
Profit growth varied significantly, with Global IME Bank at 23.36% and Nepal Bank at 322.97%, whereas Prabhu Bank’s profit rose only 0.62%. In contrast, eight banks reported profit declines, with Sanima Bank down 17.27% and NIC Asia facing an 89.06% drop.
Other banks like Rastriya Banijya Bank also experienced significant decreases, highlighting a mixed performance across the sector.
NEPSE closes lower with a drop of 20.41 points
The NEPSE index ended at 2,645.39 points on Wednesday, down by 20.41 points (0.76%) compared to the previous day’s close, after a rise of 25.88 points in the last trading session.
Throughout the day, the index experienced fluctuations, reaching a low of 2,637.54 and a high of 2,684.66.
A total of 324 stocks were traded in 65,091 transactions, with 15,742,514 shares exchanged, resulting in a turnover of Rs. 6.27 billion.
The market capitalization was recorded at Rs. 4.20 trillion, with the float market capitalization at Rs. 1.49 trillion.
Gold price hits record highs for eighth consecutive day
Gold and silver prices in Nepal have reached record highs for the eighth consecutive day, with gold climbing by Rs 800 to Rs 166,700, up from Rs 165,900.
Silver also saw a notable increase, rising Rs 35 per tola to Rs 2,135.
This surge, which began in late September, reflects a sustained upward trend with no signs of slowing as October draws to a close.
The Federation of Nepal Gold and Silver Traders attributes this persistent rise to ongoing market dynamics, suggesting strong demand for precious metals.
Govt secures Rs 34 billion investment in first 100 days
In the first 100 days of the current government, Prime Minister KP Oli announced a commitment of approximately Rs 34 billion for investments in 200 industries, signaling positive signs for the country’s economy.
He highlighted the formation of a high-level commission to recommend economic reforms based on private sector demands, which has enhanced entrepreneurs’ confidence. The government is also finalizing Nepal’s Sovereign Credit Rating with an independent expert organization.
Key agreements include collaboration between the Nepal Oil Corporation and Indian Oil Corporation to expand a pipeline for better petroleum supply and storage.
Additionally, the Nepal Accreditation Centre has been launched to ensure the quality of goods and services.
Government expenditures have risen to around Rs 329 billion, and revenue mobilization has increased by 13.3%, reaching approximately Rs 248 billion compared to the same period last year.
Beekeeping fetches handsome income for returnee migrant in Dang
Shreedhan Gharti of Supaila Khuti in Ghorahi Sub-Metropolitan City-18 in Dang district is busy in beekeeping these days.
Gharti, a 57-year-old returnee migrant worker, has been commercially running beekeeping venture for the last 16 years. Currently, he has 150 beehives which produce an impressive 7 tonnes of honey annually.
This venture is generating an annual turnover of Rs 1.6 million out of which Rs 700,000 is net income, Gharti proudly shared.
He is selling a kilogramme of honey at Rs 500. He, who ventured into beekeeping after being trained for it, sells honey from his home and credits the quality of his product for most of his sales.
Industry Minister reiterates commitment to construct dry port
Minister for Industry, Commerce and Supplies, Damodar Bhandari, has said the construction of a dry port in Dodhara Chandani of Kanchanpur district will commence soon.
During his inspection of the site of the proposed Dodhara Chandani Dry Port today, the Minister said the progress in the project is likely within a couple of months as the Council of Ministers has already given permission to use the land of the Mayapuri community forest – the buffer zone area of the Shuklaphanta National Park, for the dry port construction.
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