Category: Articles & Updates

Life Insurance Corporation Nepal Limited (LICN) has announced that it will not be distributing any dividends for the Fiscal Year 2079/80. This decision was made during the 132nd Board Meeting held on Baishakh 17, 2081.

In a recent corporate development, LICN revealed that the company’s board of directors has decided against distributing dividends for the fiscal year ending 2079/80. This decision comes amidst various considerations and discussions regarding the company’s financial performance and strategic outlook.

However, it’s important to note that the decision to withhold dividends is subject to approval from the Nepal Insurance Authority, the regulatory body overseeing insurance operations in the country. Additionally, the final decision will be confirmed during the upcoming Annual General Meeting of the company, where shareholders will have the opportunity to review and discuss the financial statements and other pertinent matters.

The announcement of no dividend distribution for FY 2079/80 reflects LICN’s commitment to transparent corporate governance practices and financial prudence. It underscores the company’s focus on maintaining stability and ensuring long-term sustainability in line with regulatory requirements and industry standards.

Global IME Bank Limited (GBIME) has recently introduced the “Global Green Home Loan Scheme,” offering competitive interest rates and additional benefits to support eco-friendly residences. With an attractive fixed interest rate of 8.99% for up to 7 years, eligible borrowers can access loans of up to 12 crore rupees under this scheme.

This initiative is designed to encourage sustainable living practices by facilitating the construction, purchase, and upgrading of environmentally conscious homes. The scheme aims to promote green building practices and reduce the carbon footprint associated with housing construction.

Participants in the Global Green Home Loan Scheme will also enjoy complimentary mobile banking and credit card services, enhancing the convenience and accessibility of banking services.

As the first private sector bank with a nationwide branch network, Global IME Bank boasts an extensive presence with over 1,100 service points, including 354 branch offices and 379 ATMs. Serving a vast customer base of over 4.6 million individuals, the bank plays a significant role in the national economy by facilitating remittances from various countries, thereby contributing to the achievement of sustainable development goals.

IME Life Insurance Company Limited (ILI) has announced its third-quarter financial results for the fiscal year 2080/2081, showcasing a remarkable surge of 75.79% in net profit. The company’s net profit surged to Rs. 33.15 crores from Rs. 18.86 crores in the corresponding quarter of the previous fiscal year, demonstrating strong growth and financial performance.

ILI’s financial overview reveals a solid foundation, with a paid-up capital of Rs. 4 Arba and a notable share premium of Rs. 1.52 Arba. The company also maintains substantial reserves, including retained earnings, other equity, and catastrophe reserves, ensuring financial stability and resilience.

During the period, IME Life witnessed a significant uptick of 7.79% in net premiums, reaching Rs. 3.11 Arba in Q3 FY 2080/81 compared to the preceding year. Additionally, the company generated Rs. 96.13 Crores from income derived from investments, loans, and other financial activities, showcasing its financial acumen and revenue generation capabilities.

However, the quarter also saw a noteworthy 14.10% increase in net claims, totaling Rs. 2.93 Arba, highlighting the challenges faced by the insurance sector.

Key financial metrics further underscore ILI’s performance, with an annualized earnings per share (EPS) of Rs. 11.05, net worth per share of Rs. 177.25, and a P/E ratio of 49.80 times. The company’s solvency ratio stands at 2.80, reflecting its financial stability and ability to meet its obligations.

ILI’s impressive performance in the third quarter reflects its strong growth trajectory and market competitiveness in the insurance industry. With a focus on profitability, financial stability, and customer satisfaction, IME Life Insurance continues to strengthen its position as a leading player in the insurance sector.

Sun Nepal Life Insurance Company Limited (SNLI) has announced its 7th Annual General Meeting (AGM) scheduled for the 9th of Jestha, 2081. The meeting will take place at Amritbhog Catering, Kalikasthan, Kathmandu, commencing at 10:00 AM.

One of the key agendas for the AGM is the endorsement of a 25.0526% dividend for the fiscal year 2079/80. The decision, made during the 99th Board of Directors meeting on Falgun 11, includes the distribution of a 23.8% bonus share worth Rs. 76.16 crores and a 1.2526% cash dividend worth Rs. 4.00 Crore (inclusive of tax).

Additionally, the meeting will entail the endorsement of the auditor’s report, including profit and loss statements, financial reports, and cash flow reports. Moreover, the appointment of an auditor for the fiscal year 2080/81 will be discussed, alongside the election of one director from the public shareholding group.

To address a capital deficit of Rs. 1.04 Arba, SNLI has proposed issuing 27% right shares after adjusting for the allocation of 23.8% bonus shares from the existing paid-up capital of Rs. 3.20 Arba. This adjustment aims to enhance the paid-up capital to Rs. 3.96 Arba after incorporating the bonus shares, ensuring compliance with the Rs. 5 Arba capital requirement mandated by the Nepal Insurance Authority (NIA) for life insurance companies.

Shareholders are advised that the book closure date is on Baishakh 27. Hence, those maintaining shares before this date will be entitled to the dividend payout and are invited to participate in the upcoming AGM.

Aatmanirbhar Laghubitta Bittiya Sanstha Limited (ANLB) has released its third-quarter financial report for the fiscal year 2080/81, revealing a significant decline in net profit. The company reported a net profit of Rs. 1.27 Crores, marking a noteworthy 71.52% decrease compared to the previous fiscal year’s corresponding quarter, where the profit stood at Rs. 4.46 crores.

While ANLB’s deposits remained stable at Rs. 84.57 Crores during the current quarter, loans and advances surged by 14.09%, reaching Rs. 1.46 Arba.

However, the core revenue represented by net interest income (NII) witnessed a downturn of 6.17%, amounting to Rs. 8.64 Crores in the current quarter, compared to Rs. 9.21 Crores in the same quarter of the previous fiscal year.

During the third quarter, ANLB reported a concerning development as impairment charges surged dramatically by 887.27%, amounting to Rs. 13.2 Crores.

Analyzing its financial structure, ANLB reported a paid-up capital of Rs. 6.85 Crores, complemented by reserves totaling Rs. 19.8 Crores.

The annualized earnings per share (EPS) stands at Rs. 24.70, with the net worth per share reported at Rs. 388.86. Notably, the Non-Performing Loans (NPL) witnessed a significant increase of 54.86%, resulting in a ratio of 11.94%.

Today, there’s a notable shift in the prices of gold and silver, as gold rates witness an increase while silver prices take a dip.

According to the latest report from the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the current price of gold has surged by Rs. 400 per tola compared to yesterday’s rate. Fine gold is now valued at Rs. 1,37,600 per tola, marking a significant uptick from the previous rate of Rs. 1,37,200 per tola. Similarly, Tejabi gold is priced at Rs. 1,36,950 per tola today, showing a rise of Rs. 400 from yesterday’s price.

However, the silver market has witnessed a decline, with the current price standing at Rs. 1,660 per tola, a decrease of Rs. 15 from yesterday’s rate of Rs. 1,675 per tola.

While these fluctuations are observed in the domestic market, it’s crucial to note that global factors play a significant role in determining these rates. Recent international data indicates gold trading at $2,337.40 per ounce, whereas silver is priced at $27.17 per ounce.

In a recent update, Upper Syange Hydropower Limited (USHL) shared its unaudited third-quarter financial report for the fiscal year 2080/2081, displaying signs of progress amidst ongoing challenges. Despite facing hurdles, the company reported a notable improvement in its financial performance compared to the same period last year.

The disclosed report unveils a significant decrease in net loss, which stands at Rs. 34.17 lakhs for Q3, showcasing a marked improvement from the previous year’s Rs. 3.92 Crores loss. However, USHL continues to grapple with negative reserves and surplus amounting to Rs. 7.75 crores, indicating persisting financial challenges.

One of the highlights of the report is the remarkable surge in electricity sales, which soared by 116.09% to Rs. 5.06 Crores during the quarter. Despite this positive growth, investments remained relatively low at Rs. 1.02 Crores, while loans experienced a marginal decrease of 0.87% to Rs. 34.32 Crores. Moreover, administrative expenses witnessed a decline of 6.76%, totaling Rs. 37.67 lakhs, with finance expenses amounting to Rs. 4.09 crores.

However, despite these improvements, USHL reported a negative earnings per share (EPS) of Rs. 2.07 and a net worth per share of Rs. 64.73. This indicates that the company’s financial position continues to pose challenges, with negative profitability and reduced net worth per share compared to the previous year.

Overall, while the Q3 report reflects signs of improvement in certain areas of USHL’s operations, the company still faces financial hurdles that need to be addressed to ensure sustained growth and stability.

Makar Jitumaya Suri Hydropower Company Limited (MAKAR) has recently declared the conclusion of the lock-in period for shares held by Dolma Impact-1, in accordance with guidelines from the Securities Board of Nepal (SEBON). The lock-in period is set to end on 16th Jestha, 2081, allowing these shares to be traded freely.

MAKAR, listed on the Nepal Stock Exchange (NEPSE) with 7,600,000 units of shares, notes that Dolma Impact-1 currently holds 26,05,900 units of shares subject to the lock-in period. Following the specified date, these shares will become eligible for trading.

Typically, under Private Equity/Venture Capital (PE/VC) regulations, the lock-in period lasts for one year after share allocation, unlike the standard three-year period. However, in the case of MAKAR, this period follows the one-year rule after a director’s resignation, with the release of shares scheduled for the 16th of Jestha, 2081.

Dolma Impact Fund, established by the Dolma Foundation in 2003, aims to combat poverty through investments in education, health, and sustainable enterprises. Dolma Fund Management, founded in 2014, introduced Dolma Impact Fund I (Dolma I), focusing on sectors supporting Nepal’s Sustainable Development Goals (SDGs). Dolma I attracted investments totaling USD 36.6 million, with its successor, Dolma II, concluding at USD 71.96 million in 2022. Managing over USD 100 million, Dolma stands as Nepal’s largest private equity fund manager, committed to promoting SDGs and adhering to global Environmental, Social, and Governance (ESG) standards.

Today, the price of gold, the beloved yellow metal, has surged by Rs. 1,400 per tola compared to yesterday’s value, reaching new highs in the market.

As per the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the current rate for fine gold stands at Rs. 1,37,200 per tola, marking a significant increase of Rs. 1,400 from the previous day’s price of Rs. 1,35,800 per tola.

Similarly, Tejabi gold is priced at Rs. 1,36,550 per tola today, showing a rise of Rs. 1,400 from yesterday’s figure of Rs. 1,35,150 per tola.

The peak in prices was observed on April 19th, 2024, when fine gold reached an all-time high of Rs. 1,39,300 per tola.

In addition, silver has also experienced a modest uptick of Rs. 20 per tola, with its current price standing at Rs. 1,675 per tola, up from Rs. 1,655 per tola the day before.

While the domestic market witnesses an upward trend in prices, global market dynamics continue to play a significant role. Latest data reveals the international rate for gold at $2,333.70 per ounce and silver at $27.47 per ounce, both showing gains.

Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) has unveiled its third-quarter report for the fiscal year 2080/2081, showcasing a remarkable surge of 167.16% in Net Profit. The company’s net profit surged to Rs. 11.65 crore compared to Rs. 4.36 crore in the corresponding quarter of the previous year.

In terms of financial metrics, FOWAD witnessed a 3.76% increase in deposits, reaching Rs. 8.67 Arba. Concurrently, loans and advances experienced a 1.42% rise, totaling 19.823 Arba in this quarter.

Core revenue, represented by net interest income, saw a notable 6.16% increase, amounting to Rs. 87.82 Crores compared to Rs. 82.72 Arba in the corresponding quarter of the previous year.

However, there was a notable spike in the company’s Non-Performing Loan (NPL) ratio, which increased to 8.26% from 5.88%. Meanwhile, the distributable profit stood at Rs. 33.87 Crores.

FOWAD reported an annualized earnings per share (EPS) of Rs. 14.72 for the third quarter of FY 2080/81, with a net worth per share of Rs. 269.34. Remarkably, the company traded at a P/E multiple of 76 times.

The Nepali stock market, represented by the NEPSE Index, experienced a mixed week with four trading days due to a public holiday on Tuesday. The NEPSE Index closed at 1,965.93, witnessing a slight decline of 6.21 points (0.31%) compared to the previous week’s close at 1,972.14.

Throughout the week, the index fluctuated between a high of 1,992.55 and a low of 1,953.37, showcasing volatility of 39.18 points. This volatility was lower than the previous week’s 64.41 points.

Key momentum indicators suggest a bearish sentiment, with the Relative Strength Index (RSI) at 35.49 on the daily timeframe and 45.21 on the weekly chart. Additionally, the Moving Average Convergence Divergence (MACD) and Signal lines are below zero, indicating a negative trend.

The market’s performance is reflected in its position relative to the 5-day and 20-day Moving Averages, both of which it is currently below, further suggesting bearish sentiment.

In terms of support and resistance levels, the 1,940 -1,960 zone is identified as the nearest support, while the 2,120 zone serves as resistance.

Insight into important data reveals that despite an intraday loss of 15.41 points on Monday, the total turnover for the week stood at Rs 9.22 Arba, with significant trading activity totaling over 2.56 crore unit shares across 1,64,168 transactions. The current market capitalization of NEPSE is Rs. 3,117,226.24 million.

In terms of sector performance, the NEPSE index declined by 0.31% for the week, although four sector indices closed in the green.

Among the top performers of the week, Pokhara Finance Limited (PFL) emerged as the top gainer, closing at Rs. 610 with an increment of Rs. 90 (17.31%). Conversely, NIC Asia Bank Limited (NICA) experienced a decline of 9.48%, with its Last Traded Price (LTP) at Rs. 348.50.

Top trading activities included Gurkhas Finance Limited (GUFL), which emerged as the top-traded company of the week with shares worth Rs. 38.22 Crores traded.

The week also saw notable brokerage activities, with Online Securities Limited (Broker No- 49) emerging as the top buyer broker and Dynamic Money Managers Securities Private Limited (Broker No- 44) as the top seller broker.

Overall, the week in NEPSE was characterized by mixed performance, significant trading activity, and notable stock movements.

The existing promoters of Kumari Bank Limited (KBL) and United Ajod Insurance Limited (UAIL) are initiating auctions for their shares, providing an opportunity for interested shareholders to acquire stakes in these companies.

Shova Mishra, the existing promoter of KBL, is auctioning 5,99,121 units of shares to interested promoter shareholders starting today. Similarly, Prithee Tiwari and Srijana Joshi, promoters of UAIL, are auctioning 1,19,882 units of shares to promoter shareholders.

Interested individuals have 35 days from the date of publication of the notice, i.e., 14th Baishakh, 2081, to submit their bids. Bids can be placed at the central office of KBL in Tangal, Kathmandu, or at Kumari Capital Limited in Naxal, Nagpokhari, Kathmandu. For UAIL, bids should be submitted at the corporate office located at CTC Mall, Sundhara, Kathmandu. The minimum bid rate for UAIL shares is Rs. 250.

If no bids are received from existing founder shareholders within the specified timeframe, the shares will be open for auction to the general public.

KBL closed at Rs. 134.00, and KBLPO had a last traded price (LTP) of Rs. 106.00. Meanwhile, UAIL closed at Rs. 522.00.