Tag: Interest

  • Development banks have decided to lower the interest rate on fixed deposits 

    Development banks have decided to lower the interest rate on fixed deposits 


    During its conference, the Development Bankers Association, an association of Development Bank CEOs, also resolved to drop the interest rate. The committee members have agreed to reduce the deposit interest rate by 1%.

    According to development banks, the interest rate on personal term deposits will now be 10.6 percent rather than 11.6 percent. Similarly, the interest rate on institutional term deposits has been reduced to 8.60 percent. It was also decided to reduce the savings interest rate by 0.60 percentage points. The lower interest rate will take effect on the first

     

  • The NEPSE Index increased by an incredible amount due to the decline in interest rates. 92.22 out of 100

    The NEPSE Index increased by an incredible amount due to the decline in interest rates. 92.22 out of 100


    The NEPSE index closed at 1,963.55 today, up 92.22 points from the previous trading day’s close. This represents a 4.93% increase. Yesterday, the index rose 27.31 points. In the last three days, the index has gained approximately 125.07 points.

    Today’s opening price for the index is 1,871.46, which is also the intraday low. In contrast, it reached a high of 1,963.89 before closing at 1,963.55.

     

  • Mahalaxmi Bikas Bank introduces new home and business loan schemes, lowering the interest rate to 12.99% with a special service charge discount.

    Mahalaxmi Bikas Bank introduces new home and business loan schemes, lowering the interest rate to 12.99% with a special service charge discount.


     

    In addition to the new year’s special offer, the bank is offering a 0.25% discount on the service charge for both of these loan schemes for female home/business owners for a limited time. According to the media statement, borrowers can also receive up to 100% of the cost of the home/building as a loan for a maximum of 30 years, as well as a special discount on the service fee.

    According to the media statement, the bank will provide loans for entrepreneurs with the best valuation of property, loan amount disbursed beforehand, and an attractive discount on in-service charge.

  • SEBON Approves Mahalaxmi Debenture 2089 at 11%

    SEBON Approves Mahalaxmi Debenture 2089 at 11%


    On Chaitra 05, 2079, the Securities Board of Nepal (SEBON) authorized the “11% Mahalaxmi Debenture 2089.”

    Mahalaxmi Bikas Bank Limited (MLBL) plans to issue 10 lakh unit debentures at Rs 1000 per unit. During a period of ten years, the bank will give an interest rate of 11% on the debenture.

    Out of the total number of units given, 4 lakh will be made available to the general public and 6 lakh would be made available for private placement.

    The issue manager is NIC Asia Capital. The offering would generate a total of Rs 1 Arba.

  • Commercial Bank Fixed Deposit Interest Rates Remain Unchanged

    Commercial Bank Fixed Deposit Interest Rates Remain Unchanged


     

    The Nepal Bankers Association (NBA) has decided to lower the interest rate on savings while keeping the interest rate on fixed deposits unchanged.

    The meeting was attended by the CEOs and representatives of all commercial banks to review the interest rate beginning on Chaitra 1. Savings interest rates currently range from 6.42 percent to 8.4 percent. It has been decided to keep the rates between 6% and 8%.

  • SEBON Approves 10.75% NMB Debenture 2089/2090; Bank Will Soon Issue 40 Lakh Unit Debentures

    SEBON Approves 10.75% NMB Debenture 2089/2090; Bank Will Soon Issue 40 Lakh Unit Debentures


    On Falgun 18, 2079, the Securities Board of Nepal (SEBON) approved the “10.75% NMB Debenture 2089/2090”.

    NMB Bank Limited (NMB) plans to issue 40 lakh unit debentures at Rs 1000 per unit. The bank will offer a 10.75% interest rate on the debenture for ten years

     

  • Higher Impairment Charges Caused a 67.92% Drop in Kalika Laghubitta’s Net Profit

    Higher Impairment Charges Caused a 67.92% Drop in Kalika Laghubitta’s Net Profit


    Kalika Laghubitta Bittiya Sanstha (KMCDB) released its second-quarter report for FY 2079/2080, which showed a 67.92% decrease in net profit. According to the company’s report, net profit fell to Rs. 2.69 crores from Rs. 8.40 crores in the previous year’s corresponding quarter.

    The decrease in growth profit is primarily due to impairment charges totaling Rs. 1.66 crores. Net interest income (core revenue) has also decreased by 9.23% to Rs. 13.7 crores from Rs. 15.16 crores in the same quarter last year.

     

  • 11.25% Global IME Bank Debenture 2084 is available for purchase beginning on March 29.

    11.25% Global IME Bank Debenture 2084 is available for purchase beginning on March 29.


    Global IME Bank Limited has opened public issue of 50 lakh units’ worth of ‘11.25% Global IME Bank Debenture 2084’ from Magh 29, 2079. The issue will conclude on  Falgun 3, 2079 at the earliest and by Falgun 14, 2079 at the latest.

    The par value of the debenture is NRs. 1,000 per unit. From the total 50 lakh units of ‘11.25% Global IME Bank Debenture 2084’, 30 lakh units are allocated for subscription via private placement and 20 lakh units are for the general public, including a 5% quota for mutual funds.

     

  • Higher Operating and Interest Expenses Caused a 95.81% Drop in Ridi Power’s Net Profit Company to Issue 50% Right Shares

    Higher Operating and Interest Expenses Caused a 95.81% Drop in Ridi Power’s Net Profit Company to Issue 50% Right Shares


    Ridi Power Company Limited (RIDI) reported a 95.81% decrease in net profit in the second quarter (Q2) of the current fiscal year 2079/80. Profit declined to Rs. 1.96 crores in this quarter from Rs. 46.98 crores in the previous year’s equivalent quarter.

    In this quarter, the firm recorded total income of Rs. 18.92 crores, a 71.94% reduction from the previous year’s similar period.

    According to management, there has been no substantial change in the organization’s balance, income, or liquidity during this quarter. The operations are carried out in accordance with the company’s business plan. During this quarter period, as the company’s interest climbed, the income decreased, and it is projected that the profit will improve when the interest expenditure reduces in the future days, and the income will improve from the following quarter.

    It has a reserve resource of Rs. 50.25 crores and a share capital of Rs 1.10 Arba. For Fiscal Year 2078/79, the corporation additionally proposed 40% bonus shares worth Rs. 44,25,43,200 and a 2.10% cash dividend (including tax) of Rs 2,32,33,518. The firm has capitalized these extra dividends, resulting in an increased paid-up capital of Rs. 1.54 Arba.

    Furthermore, the business intends to issue 77,44,506 rights shares (1: 0.50 ratio right shares) to shareholders. Following SEBON clearance, this will be given from the paid-up capital of Rs. 1.54 Arba.

    Its annualized earnings per share are Rs 3.56, its net value per share is Rs 145.43, and its P/E ratio is 153.94.

  • Becoming an Investor in Nepal

    Becoming an Investor in Nepal


    Before we get into how to become an investor in Nepal, it’s important to understand who an investor is. An investor is someone who puts money into something with the hope of profiting in the future. A return is the benefit derived from such an investment. Investors are always on the lookout for high-yielding investment opportunities.

    What distinguishes an investor from others?

    Based on a book written by Robert Kiyosaki Rich Dad Poor Dad, people can be divided into four distinct categories in terms of generating income. They are:

    1. Employee (Salary-based) are those who work for others in order to meet their needs. They are paid at the end of the month for their work. Job holders are included in this category. Employees benefit from security because they know they will be paid at the end of the month. The main disadvantage of being an employee is the lack of freedom.

    2. Self-employed are individuals who work for themselves. They have more freedom than salaried employees, but they must work like salaried employees to meet their demands.

    3. Businessmen are the owners of the company Business owners hire others to work for them. They create products and services in order to make money.

    4. Investors invest in businesses and stocks for profit.

    According to the book, in order to become wealthy, you must be either a businessman or an investor, or both.

    Investing characteristics

    Not all of your money can be considered an investment. There are a few factors that distinguish between spending and investing. The following are the two most important characteristics that every investor should possess:

    1. Safety of principal

    The principal is your machine, which can print money for you. It is in your best interest to keep your machine in good working order. When you lose your principal, you can’t make money off of it. As a result, the safety of the principal should be your top priority.

    2. Adequate return

    When you put your money into a good business, you get something in return. Your return can take the form of cash, shares, or stocks. What you should remember is that your principal earns you some level of return. You should not expect a return on your investment that is exponential or even out of the realm of possibility. Investing with a non-realistic expectation of return is gambling. Never put your principal at risk. It is all you have.

    Benefits of being an investor

    1. Beating inflation

    Inflation is a term used to describe the gradual decline in the purchasing power of money. A popular saying goes, “A dollar today is worth more than a dollar tomorrow.” As an investor, you have the ability to outperform inflation and keep your money’s value constant. You should always keep an eye on inflation and strive to outperform it. Your investment return should always be greater than your country’s inflation rate.

    2. Own businesses of different types

    It is yet another advantage of being an investor. You can own as many and as varied businesses as you want. What you should have are some investing principles that you can use before you start investing. After you’ve established your investing principle, the world is yours to explore.

    A popular investing field in Nepal

    There are three main popular fields of investing in Nepal. They are:

    Land and Real estate

    Real estate is and has always been the best investment opportunity. Real estate investment generates income from two sources: renting and selling real estate. It can be both active and passive investment. You can actively buy and sell properties, or you can simply invest in real estate and let time do the work of calculating your income. You can always expect your property’s value to rise over time. In the meantime, you can use the money you earn from renting to cover your day-to-day expenses.

    Interest yielding deposits

    Banks in Nepal offer competitive interest rates on fixed deposit savings. You can protect your principal by using fixed-deposit schemes offered by commercial banks or development banks in Nepal. While cooperative companies in Nepal have high rates of return, they have a bad reputation for fraud or scams. It is not a good idea to put all of your money in cooperatives.

    In Nepal, there is also peer-to-peer lending. It pays a higher interest rate on your money than institutions, but it also carries a higher risk.

    Interest-bearing deposits are one of the best passive income ideas in Nepal, regardless of where you choose to invest.

    Nepal Stock Exchange

    Nepal Stock Exchange (NEPSE) is the country’s sole stock exchange. If you are new to this, you can read the NEPSE beginner’s guide. Investing in stocks provides you with two significant benefits. You can be a shareholder in any company you want, and you will receive an annual return. Alternatively, you can sell your stocks if the price rises. Stock investing, like real estate investing, allows you to be either an active trader or a passive investor. Stock investing can begin with as little as 100 rupees. Stocks could be the next best small business in Nepal for you.

    Furthermore, the best investment you can make is in yourself. Always seek to broaden your knowledge. Read books, websites, and news to stay current. One thing that all of the best investors have in common is that they are voracious readers. As the saying goes, the more you learn, the more you earn.

    Lastly…

    It is not easy to become an investor. To become a good investor in Nepal and other countries, a certain set of principles and hard work are required. However, it is not as difficult as learning rocket science. Anyone can become a good investor with careful planning and dedication. There are a few things you should never forget and a few things you should never forget. Best wishes for your investment.

  • Stock Market Strategy for Long Term Success

    Stock Market Strategy for Long Term Success


    While investing in the stock market is a risky proposition, that should not stop aspiring investors from taking that first leap. The secret of investing lies in having a stock market strategy for long term success.

    Be knowledgeable.

    Savvy investors only get into a stock market investment after they become aware of the necessary information about the company. It is unwise to invest in companies before learning everything about them including future plans, current performance and their past history.

    It is impossible for an investor to know everything right away. Getting investment advice helps investors locate the right stock that will offer significant profits over time. And an investor should always be aware of the fundamental value of the stock they are purchasing.

    Choose to invest in a company that is part of a familiar industry. An investor should have a decent understanding of the business they are investing in so they can fully comprehend the value of the stock. By having this type of knowledge, investors are more independent and do not need to rely solely on advisers and analysts.

    Investors should carefully select the sources of information they rely upon. Tips offered out in the stock market should usually be avoided as they are typically provided by people with vested interest.

    Have a long term goal.

    When investors get started in the stock market, it is important to set a long term goal for success. The goal determines the approaches to be used and influences the decision made in the future. Having a solid goal ensures greater regularity in the face of indecision when the stock market moves.

    A long term goal helps investors avoid making spur of the moment decisions that could negatively affect their financial picture. A long term goal helps investors create a more stable financial future by making steady investment purchases. With a long term goal in mind, an investor has greater consistency.

    Only take calculated risks.

    Speculative ventures must be avoided when investing in the stock market. While there are risks in any business enterprise, they must be calculated carefully to reduce the possibility of loss and maximize potential profits. Guesswork simply does not work when it comes to stock market investing.

    The stock market is not a gamble.

    Stock investing is not gambling and should not be treated as a game. Investor can lose major money in the stock market and investments simply should not incur huge losses. It is simple to purchase stocks, but difficult to regain lost money.

    No investor can afford to make costly mistakes in the stock market. When investors have the desire to gamble, the long term goal must be strictly reviewed and then followed. By revisiting the long term goal, investors can minimize the probability of investing too much money and losing it all.

    Be disciplined.

    Self-motivation is required for successful investing. To make the most of the stock market, the investor needs to have discipline and determination to keep persevering to achieve their goals.

    To be a winner in investing today, you must have courage, passion, knowledge and a stock market strategy. A prudent investor can take advantage of the myriad of opportunities in the stock market for greater financial freedom in the future.