Setikhola Hydropower has selected Kumari Capital as the issue manager to issue 60 lakh unit ordinary shares to the public investors. The memorandum of understanding (MoU) was signed between the CEO of Kumari Capital, Mr. Puspa Sharma, and the chairman of Setikhola Hydropower, Mr. Anup Acharya, during a program, according to the media statement.
The Nepal Rastra Bank (NRB) has invited media personnel to attend the announcement of the long-awaited monetary policy 2080-81. The event will be held at 3:00 pm at the Yak and Yeti Hotel in Durbarmarg, with NRB Governor Maha Prasad Adhikari in attendance.
Today, the price of gold in the domestic market has dropped by Rs. 500 per tola. Fine gold is now being traded at Rs. 112,300 per tola, compared to yesterday’s rate of Rs. 112,800 per tola. Tejabi gold is also lower today at Rs. 111,750 per tola, while yesterday it was Rs. 112,250 per tola.
The Governor of Nepal Rastra Bank has cleared up any confusion about point 106 of the newly revealed monetary policy. This point pertains to the review of the current risk weightage for share/securities loans, real estate loans, and higher purchase loans disbursement. In simpler terms, the bank is reevaluating how much risk is involved in giving out these types of loans. The aim is likely to ensure a well-balanced and secure lending environment for both the bank and borrowers. By reviewing and adjusting the risk weightage, the bank can better manage potential risks associated with these loans and make informed decisions in the lending process.
Kamana Sewa Bikas Bank has recently introduced new loan schemes with an attractive interest rate of 12.12%. These schemes offer customers the opportunity to access various types of loans, including home loans, MSME loans (Micro, Small, and Medium Enterprises), and EV loans (Electric Vehicle loans), all at a reduced interest rate compared to standard loan offerings.
Under the home loan scheme, eligible borrowers can receive loans up to 60% of the collateral’s valuation. The repayment period for these home loans can extend up to 30 years, providing customers with a long-term financing option for their residential property needs. However, it is essential to note that the loan amount must not exceed Rs. 1.50 crore to qualify for this particular loan scheme.
For those seeking financial support for their MSME ventures, the bank is offering loans equivalent to 80% of the collateral’s valuation. This can be a significant boost for small and medium-sized enterprises looking to expand or invest in their businesses.
As for the EV loan, the bank provides borrowers with the opportunity to access funding up to 80% of the vehicle’s price, making it more affordable for customers interested in purchasing electric vehicles.
To further streamline the loan application process and enhance customer convenience, Kamana Sewa Bikas Bank is ensuring that applicants receive the loan amount promptly. According to their media statement, once applicants submit all the necessary documentation, they can expect to receive the loan amount within three working days.
Overall, these new loan schemes by Kamana Sewa Bikas Bank aim to offer competitive interest rates and faster loan processing to cater to the diverse financial needs of their customers, ranging from homeownership to business expansion and environmentally friendly vehicle purchases.
Gold has reached a new record high in Nepal, with the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA) reporting that it is being traded at Rs. 1 lakh 13 thousand 600 per tola. This represents an increase of Rs. 500 compared to the previous day’s price. Just a day before, on Jestha 19, the price of gold had already reached an all-time high of Rs. 1 lakh 13 thousand 300 per tola.
On the day before, the price of gold had risen by Rs. 600 to reach Rs. 1 lakh 13 thousand 100. The upward trend in gold prices has been remarkable in recent days, leading to these consecutive record highs.
As for silver, its price also saw an increase on Thursday, reaching Rs. 1495 per tola, which is Rs. 5 more than the previous day’s price of Rs. 1,490 per tola.
In the international market, the price of gold has been trading at $1979.82 per ounce on Thursday, after remaining steady at $1974.44 an ounce on Wednesday. Similarly, silver was priced at $24.99 per ounce on Wednesday and experienced a slight rise to $25.1 on Thursday.
The surging prices of gold and silver in both the local and international markets have drawn attention from investors and traders, indicating a trend of increasing precious metal prices in the current economic scenario.
In the last financial year 2079/80, there was a significant decrease in real estate transactions, according to data from the Department of Land Management and Archive. The purchase and sale of land dropped by approximately 38%, resulting in a decrease in the number of processed documents for real estate transactions. In the financial year 2078/79, around 745,000 documents were processed, but in the last FY 2079-80, this number was limited to around 463,000.
The decline in land transactions was evident in Ashad, the last month of the financial year 2079-80, with only 44,485 documents being processed compared to 55,069 documents in Jestha, which recorded the highest transactions for the financial year. The Department of Land Management and Archive reported that 42,461 land deeds were processed in Baisakh, and 49,150 in Chaitra. The numbers gradually decreased until Asoj when it dropped to about 26,000, but then it began to increase slowly again.
The slowdown in real estate transactions had a significant impact on the government’s revenue collection. The real estate revenue decreased by about 29%, totaling only Rs. 41 Arba 15 crore 76 lakhs in the last financial year, compared to Rs. 57 Arba 66 crores 99 lakhs the previous year.
The plotting of land also decreased considerably, with a 60% drop compared to the financial year 2078/79. In FY 2079-80, 285,000 plots were divided, whereas in FY 2078/79, 694,213 plots were divided.
To address the slowdown in land transactions and its impact on the overall economy and government finances, the government had planned to open the allocation of land. However, the Land Management and Archive Department has not yet issued any instructions or circulars to do so, and the situation remains unchanged.
The legal knot to open the land auction needs to be untied, and the First Amendment Regulations-2079 require amendment to open the land registry. The Ministry of Land Management, Cooperatives, and Poverty Alleviation is currently preparing for this.
In recent days, the real estate business has shown signs of improvement due to the increase in investable capital in banks. As banks started accumulating investments, investments in real estate have started to increase again.
Despite the announcement to facilitate the sale of real estate and the decision of the Council of Ministers to open the section, the implementation has been delayed. The Nepal Land & Housing Developers’ Association is urging the government to implement the decision and release Kittakat, claiming that the overall economic activity of the country is slowing down because the real estate sector is not functioning.
The Nepal Rastra Bank (NRB) is preparing to announce the monetary policy for the ongoing fiscal year 2080-81, which is expected to be publicized by the end of the first week of Shrawan. Narayan Prasad Pokhrel, the Deputy Spokesperson and Information Officer of NRB, revealed in a phone conversation with Sharesansar that the central bank has devised internal procedures to ensure the monetary policy is made public by Shrawan 07, which falls on the upcoming Sunday.
Narayan Prasad Pokhrel stated, “The internal procedures of the Nepal Rastra Bank have been designed in a way that allows for the monetary policy to be publicized by Shrawan 07.” This indicates that the necessary steps and protocols have been put in place within the central bank to ensure the timely release of the monetary policy.
In related news, Governor Maha Prasad Adhikari of NRB is expected to return to Nepal from his foreign trip on Wednesday. Previously, there were reports that a delegation of 28 members, led by the governor himself, would be traveling to Canada. The purpose of this trip was to engage in discussions with the assessment team of the Financial Action Task Force (FATF) in order to prevent Nepal from being placed on the “grey list” for money laundering.
The announcement of the monetary policy by the NRB is an important event that will have implications for the fiscal year 2080-81 in Nepal. It is expected that Governor Maha Prasad Adhikari’s return from his foreign trip will coincide with the release of the monetary policy, indicating that the central bank is actively addressing both domestic and international financial matters.
The Inland Revenue Department (IRD) faced a shortfall in revenue collection for the last fiscal year, collecting a total of Rs. 4 Kharba 80 Arba. This amount fell 23 percent below the target set at Rs. 6 Kharba 26 Arba. Furthermore, the revenue collected was Rs. 3 Arba less than the previous year’s collection (2078/79).
Throughout the fiscal year, the department struggled to meet its revenue targets. Even in the month of Ashad, revenue collection fell short compared to the previous year, with only Rs. 72 Arba collected as opposed to the previous year’s Rs. 73 Arba.
By the end of Jestha, the department had collected Rs. 4 Kharba 8 Arba, falling short by Rs. 2 Arba compared to the previous fiscal year. Despite this, it was significantly below the revenue target set for the year.
The lower revenue collection was primarily attributed to reduced earnings from banks, financial institutions, alcohol, and automobile dealers compared to the previous year. The department faced challenges in meeting revenue targets since the month of Shrawan, with each subsequent month falling short of the set targets.
For instance, in Poush, the department collected only Rs. 71.31 Arba, which was far below the target of Rs. 1 Kharba 6 Arba. Similarly, in Chaitra, the collection amounted to only Rs. 55.2 Arba, while the target was set at Rs. 83.75 Arba.
Overall, the Inland Revenue Department managed to collect approximately 77 percent of the targeted revenue, resulting in a shortfall of Rs. 3 Arba compared to the previous fiscal year’s collection.
The banking sector in Nepal has recently witnessed a decrease in the interbank interest rate, indicating an increase in liquidity within the system. According to data provided by Nepal Rastra Bank, the interbank interest rate of banks has fallen below 1 percent. Specifically, on Ashad 27, the interbank interest rate remained stable at 0.83 percent.
In parallel, the average Cash Deposit (CD) ratio experienced a decline on Ashad 27, reaching 81.67 percent compared to the 82.11 percent recorded on Ashad 25. This decline in the CD ratio can be attributed to the infusion of an additional Rs. 23 Arba into the banking system.
As of Ashad 25, the total deposits held by banks and financial institutions amounted to Rs. 57.13 Kharba. By Ashad 27, this figure had increased to Rs. 57.36 Kharba. Moreover, the credit investment by banks stood at Rs. 48.51 Kharba.
Overall, these developments indicate a higher level of liquidity within the banking sector in Nepal, reflected by the decrease in interbank interest rates and the rise in total deposits. This increased liquidity provides potential opportunities for financial institutions to support credit investment and drive economic growth.
Today, the price of gold has experienced an increase of Rs. 800 per tola in the domestic market. As reported by the official website of the Federation of Nepal Gold and Silver Dealers’ Association, fine gold is currently being traded at Rs. 112,400 per tola, whereas yesterday it was maintained at Rs. 111,600 per tola. Tejabi gold, on the other hand, is being traded at Rs. 111,850 today, compared to yesterday’s rate of Rs. 111,050 per tola.
In addition, the price of silver has also seen a rise of Rs. 40 per tola. The shiny white metal is currently being traded at Rs. 1,440 per tola in the local market, whereas the closing rate yesterday stood at Rs. 1,400 per tola.
It is worth noting that in the international market, the current price of gold stands at USD $1,956.10 per ounce, while silver is being traded at $24.17 per ounce.
The Radhi Sana Hydropower Project, with a capacity of 4.4 MW and owned by Radhi Bidyut Company Limited (RADHI), has come to a halt due to flooding. The recent flood and landslide on Ashad 22 caused significant damage to the project’s headworks and head race pipe, resulting in the suspension of energy production.
Located in the Lamjung district of the Gandaki Province in Nepal, the Radhi Sana Hydropower Project operates as a run-of-the-river (R-o-R) type project. It was designed with a 40% probability of exceedance (Q40). Although the project was scheduled for commercial operation by April 13, 2013, it faced delays and was finally commissioned on June 14, 2014, approximately a year later than the required commercial operation date (RCOD).
Unfortunately, the recent flood has caused significant damage to the project’s infrastructure, leading to a temporary halt in energy generation. The company is likely assessing the extent of the damage and will need to undertake necessary repairs before resuming operations.
The interruption in the Radhi Sana Hydropower Project’s functioning is a setback for the company, as it impacts their ability to contribute to the local energy grid and meet the region’s power demands. Efforts will now be focused on restoring the damaged components and ensuring the project can resume its operations as soon as possible, providing clean and sustainable energy to the area once again.