Tag: Interest

  • Nepali Banks’ Interest Rate Review: Baisakh 2081 Update

    Nepali Banks’ Interest Rate Review: Baisakh 2081 Update


    In the most recent financial update, twenty commercial banks have announced revisions to their interest rates for the month of Baisakh. Interestingly, a majority of these banks, totaling 13, have opted to decrease their interest rates. However, notable exceptions to this trend include NMB Bank (NMB) and Everest Bank (EBL), which have instead chosen to raise their interest rates. Additionally, five banks have maintained their interest rates at the same level as the previous month of Chaitra.

    NMB Bank has attracted attention by offering the highest fixed deposit (FD) rate of 7.97% for individual fixed deposits in Baisakh, marking a significant increase from the 7% rate observed in the preceding month. Similarly, the average interest rate for institutional fixed deposits has seen an uptick from 6% to 6.97% during the same period.

    A closer examination of the comparison between Baisakh and Chaitra months reveals strategic shifts among various banks. Notably, NIC Asia Bank has taken the lead in reducing FD rates across the board. The bank has successfully decreased the maximum interest rate on individual fixed deposits by 0.80% and implemented a 0.85% reduction in the maximum interest rate on institutional fixed deposits.

    While some banks have maintained consistency in their interest rates for institutional fixed deposits, such as Citizens Bank International, Rastriya Banijya Bank, and Prabhu Bank, they have chosen to decrease rates for individual fixed deposits by 0.25%, 0.45%, and 0.50%, respectively.

    Amidst these fluctuations, the Agricultural Development Bank stands out with the lowest interest rates, offering a maximum of 5.661% on individual fixed deposits and 4.01% on institutional fixed deposits.

     

  • Secondary bata kineko Debenture ko interest kaile dekhi aauxa?

    Secondary bata kineko Debenture ko interest kaile dekhi aauxa?


    Maile 2months aghi debenture kineko thya, tesko interest kaile dekhi deposit hunxa ?? Mero demat ma aye dekhi bata ko interest pauxa ? And tax kati deduction garxa ?

    View on r/NepalStock by Lazy-Set2711

  • NEPSE Index Rises 15.33 Points as Interest Rates Decline; Investors Anticipate Monetary Policy

    NEPSE Index Rises 15.33 Points as Interest Rates Decline; Investors Anticipate Monetary Policy


    The Nepal Stock Exchange (NEPSE) Index gained 15.33 points, or 0.73%, closing at 2,101.16 points, rebounding from the previous day’s loss of 10.50 points. Today’s trading began with the index opening at 2,085.81, hitting a low of 2,081.81, and peaking at 2,103.91.

    Throughout the trading session, 314 different stocks were traded in 75,105 transactions. The volume of shares exchanged totaled 10,108,122, with a turnover of Rs. 3.58 Arba. Market capitalization stood at Rs. 33.02 Kharba, with a float market capitalization of Rs. 11.33 Kharba.

     

  • Banks are reducing Interest rates AGAIN!!!

    Banks are reducing Interest rates AGAIN!!!


    Is this decrease in Interest rates done so that the NPL does not rise by a huge amount?
    I mean, a person taking a loan has to pay less interest, and thus the cost of converting that loan to a NPL is less.
    Or is there a specific reason?Like, who would keep an FD at 7-8%?

    View on r/NepalStock by Various_Ad14

  • Banks planning to reduce deposit interest further, no approval required for foreign investment in stocks

    Banks planning to reduce deposit interest further, no approval required for foreign investment in stocks


    is this a good news?

    Sources: [https://merolagani.com/NewsDetail.aspx?newsID=99417](https://merolagani.com/NewsDetail.aspx?newsID=99417)

    [https://merolagani.com/NewsDetail.aspx?newsID=99415](https://merolagani.com/NewsDetail.aspx?newsID=99415)

    View on r/NepalStock by captainright1

  • Laxmi Sunrise Bank Q2 Report: Modest Profit Dip Amidst Impressive Growth and NPL Concerns

    Laxmi Sunrise Bank Q2 Report: Modest Profit Dip Amidst Impressive Growth and NPL Concerns


    Laxmi Sunrise Bank Limited (LSL) has shared its financial results for the second quarter of the fiscal year 2080/81, reporting a small 1.66% decrease in net profit to Rs. 1.05 Arba compared to the same period last fiscal year when it earned Rs. 1.07 Arba.

    The bank showcased positive growth with a remarkable 104.66% increase in net interest income, reaching Rs. 5.65 Arba, and operating profits rising to Rs. 1.44 Arba for the corresponding period. However, loans and advances saw a slight 0.07% decrease, while customer deposits increased by almost 4.84% to Rs. 3.1 Kharba. Notably, impairment charges surged significantly by 376.87%, totaling Rs. 2.73 Arba in Q2 of FY 2080/81.

    For the fiscal year, LSL reported an annualized earnings per share (EPS) of Rs. 9.14, and the net worth per share was Rs. 166.62. A concern arises as Non-Performing Loans (NPL) saw a substantial 199.36% increase, reaching 4.67% in the second quarter, a significant jump from the 1.56% recorded in the same period last fiscal year.

    LSL reported negative distributable profits of Rs. 81.18 Crores, while maintaining a paid-up capital of Rs. 23.18 Arba and reserves and surplus amounting to Rs. 16.26 Arba in Q2 of FY 2080/81. Specific figures show an increase of 7.00% in paid-up capital to Rs. 23,187,155.00, a decline of 146.97% in retained earnings to -811,864.00, and a 9.67% increase in reserves to 16,260,042.00. Deposits rose by 4.84% to Rs. 310,591,321.00, and loans and advances experienced a marginal decrease of 0.07% to Rs. 247,691,314.00. Net Interest Income increased significantly by 104.66% to Rs. 5,658,331.00. Personnel expenses and impairment charges were reported at Rs. 1,802,336.00 and Rs. 2,732,609.00, respectively.

    The operating profit for the quarter was Rs. 1,445,052.00, reflecting a 3.22% decrease, and the net profit stood at Rs. 1,059,210.00, representing a 1.66% decline. The capital adequacy ratio is reported at 12.67%, showing a slight decrease from the previous year. The Cost of Fund decreased by 14.59% to 7.61%. The NPL percentage increased significantly by 199.36%, reaching 4.67%. The Qtr end PE Ratio stands at 19.06 times.

  • RSDC Reports 6.65% Growth in Net Profit in First Quarter of Fiscal Year 2080/81

    RSDC Reports 6.65% Growth in Net Profit in First Quarter of Fiscal Year 2080/81


    RSDC Laghubitta Bittiya Sanstha Limited (RSDC) has recently released its first quarterly report for the fiscal year 2080/81, revealing several noteworthy findings. One of the most significant highlights is the impressive growth in net profit, which increased by 6.65%. During the first quarter, RSDC reported a net profit of Rs. 4.07 crores, a marked improvement compared to the Rs. 3.82 crores in the same period of the previous year.

    The report also emphasizes a substantial rise in borrowings, which surged by 9.05% in the first quarter of 2080/81, reaching a total of Rs. 5.90 Arba.

    RSDC reported a substantial reduction of 101.98% in impairment charges. This decline signifies improved asset quality and risk management within the organization. However, the company’s expenses related to personnel increased by 6.32%, reaching Rs. 1.21 crores by the end of Ashwin.

    Net Interest Income, the primary revenue stream for microfinance companies, experienced a decrease of 10.96%, totaling Rs. 6.81 crores in the first quarter of the fiscal year 2080/81. This decline may be reflective of broader economic conditions.

    Although at a relatively low level, the Non-Performing Loan (NPL) ratio increased to 1.49% in the first quarter of the financial year 2080/81.

    RSDC maintains a paid-up capital of Rs. 86.95 crores, with a distributable profit of Rs. 10.13 crores to be distributed to its shareholders, indicating the company’s sound financial position.

    The Net Worth per Share has remained nearly constant at Rs. 126.93.

    It is worth noting that the company has proposed a dividend of 9.0528% (comprising 8.6% bonus shares worth Rs. 7.47 Crores and 0.4528% in cash dividends worth Rs. 39.35 lakhs) for the fiscal year 2079/80.

  • Relation between interest rate and share market?

    Relation between interest rate and share market?


    I understand when interest rate goes us market goes down and vice versa. But why? Any logical explanation?

    View on r/NepalStock by [deleted]

  • Hi guys, If my company based out of India invest in Nepal fixed deposits then we should be paying 5% TDS from interest earned. So we will not be paying any additional corporate tax in Nepal?

    Hi guys, If my company based out of India invest in Nepal fixed deposits then we should be paying 5% TDS from interest earned. So we will not be paying any additional corporate tax in Nepal?


    If anyone having knowledge in corporate law can help. That would be very helpful.

    View on r/NepalStock by Affectionate-Draw696

  • Your opinion on, will the interest rate decrease next month?

    Your opinion on, will the interest rate decrease next month?


    Cause interest rate is inversely proportional to direction of movement of market.

    View on r/NepalStock by -No-One-Nepal

  • How is total interest in fixed deposit calculated?

    How is total interest in fixed deposit calculated?


    Apparently Prime bank calculates interest amount in days rather than months. If I have FD of 10lakhs for 10% for 6 months. The return I should get is (10%\*1000000)/2 – 5% tax = 47500 but I get slightly lower amount because its calculated in days. Sometimes its 500rs less, sometimes its 1000. Is this the same for all banks? Do you guys get exact amount return as you calculated using above formula?

    View on r/NepalStock by slaughterhouse_seven