Global IME Bank AGM to endorse 15% bonus shares

Global IME Bank Limited is holding its seventh Annual General Meeting today.

The AGM being held at Hotel Vishwa in Birjung is due to endorse 15 percent bonus shares to its shareholders from the net profit the commercial bank posted in the last fiscal year 2069/70.
The Annual event is also likely to endorse a proposal to soar up capital of the bank.

Global IME Bank’s net profit had risen by 108.24 percent in the last fiscal year. The bank garnered profits of Rs 55.24 crore as against Rs 26.53 crore in the previous fiscal year.

Global IME Bank AGM in Birgunj on Jan 3 to endorse 15% bonus shares

Global IME Bank, which has entered into a merger process with Commerz and Trust Bank Nepal Limited, is going to hold its Annual General Meeting on January 3.

The AGM scheduled at Hotel Vishwa in Birgunj sub-metropolis is due will formally endorse 15 percent bonus shares to the shareholders from the net profit it earned in the last fiscal year 2069/70.

Global IME and Commerz and Trust likely to finalize merger this week

After months of closed-door negotiations with various BFIs, Commerz and Trust Bank Nepal Limited has more or less decided to merge with Global IME Bank.

Nepse Wrap up (Review period 11th Aug to 15th Aug, 2013)

Much of the market excitement seen in the prior weeks seems to have faded away.  As most of the investors are liquidating their position for short term profit, the local bourse hasn’t been able to gain ground in recent days.

Followed by the prior week’s meager decline, the local bourse failed to make any attempt of recovery this week. For consecutive five trading days, the market with its lethargy movement continued to settle in red zone one after another.

Commerz and Trust, Machhapuchchhre profits 5.86 cr & 14.80 cr resp.

Commerz and Trust Bank and Machhapuchchhre Banks have posted an astounding growth in profit for the FY 2069/70. While Commerz and Trust’s profit surged by a whopping 286.01%, Machhapuchchhre’s earning soared by an almost corresponding figure of 287.42%.

NEPSE tumbles by 5.68 pts to 540.87

As the market has been observing back gear movement since past few days, the investors’ are anticipating for a correction at this stage before market starts to rally in the future date.

Such expectation and sentiment in the market today lured the maximum numbers of investors in profit booking their position before further decline leading to a downfall of local bourse by 5.68 points.

Commercial banks should maintain institutional deposits at less than 60%, NRB

With the Nepal Rastra Bank (NRB) directing commercial banks to maintain institutional deposits at less than 60 percent of their total deposits, newer banks will be in a difficult position to implement the NRB directive.
In its new monetary policy, the NRB has asked commercial banks to lessen their dependence on institutional depositors. The central bank adopted such a policy as a precautionary measure against a possible liquidity crisis when a few big institutional depositors withdraw deposits.

Nepal Rastra Bank to order Banks to cut disparity in interest rates

Nepal Rastra Bank (NRB) is planning to issue a directive ordering banks and financial institutions (BFIs) to keep difference of interest rates on a particular category of loans within a certain limit. The policy is directed at re moving the wide disparity in interest rates on loans of a similar type.
The central bank’s move follows a provision in the new monetary policy which states that the difference in interest rates on loans and deposits, service charges, commission rates, fees and fines should be kept at a “justified” level.

NEPSE ended this FY closing at 518.27, gaining 128.55 pts, or 32.99% over the last fiscal closing.

Fiscal year 2069/70 augured well for the secondary market of Nepal as its performance fared better than the last year’s.

Though the market entered the year in a battered condition, with political gloom hanging over the country following the dissolution of Constituent Assembly, several factors like margin lending, mutual fund, Central Depository System (CDS), dividend payout ratio of the companies and other factors salvaged the performance of the local bourse.

The market ended its fiscal 2069/70 run closing at 518.27, gaining 128.55 points, or 32.99 percent, over the last fiscal closing.

IPOs witness three-fold rise this fiscal

Primary share investors had a lot to choose from as the number of primary issues offered this year was three times more than the initial offerings in last fiscal year.

The capital market will see Initial Public Offerings (IPOs) of 18 financial institutions, one insurance firm and one hydropower firm before the fiscal year ends. The IPOs will offer about 300 million unit shares worth Rs 3.8 billion.

The year started with Khandbari Bikas Bank’s public issue worth Rs 15 million and will now end with Rural Microfinance Development Centre (RMDC)’s IPO that will be issuing 1.56 million shares with premium price of Rs 180.

Securities Board of Nepal (Sebon) has given a green signal to the public issue of 21 companies, debenture issues of seven commercial banks, and two mutual fund issues.

Hydropower - The Next Generation for stock investment both IPOs & secondary market.

Chilime Hydro is more than an average hydropower project, it is a success story and a symbol - a symbol that signifies that major development projects can be done solely based on Nepalese investments. People in Nepal have come to grasp the reality that great things can be done if everybody put their heads together, especially when the government provides a conducive atmosphere in the country. In recent times, IPOs of banks and other institutions have been flooded with investor optimism creating major over-subscription of numerous shares floated. The ongoing Mega Bank IPO was oversubscribed by over 22 times which translates to about Rs. 14.2 billion. The following banks were all oversubscribed and received total applications in the following amounts:

IPO of Sana Kisan Bikash Bank & Rural Microfinance Development Centre (RMDC) affects secondary market.

Nearing fiscal year end and IPOs of Sana Kisan Bikash Bank Limited and Rural Microfinance Development Centre Ltd. swept away the positive sentiment of the market that was seen last week from the news of NRB in process to increase the paid up capital of financial institutions, this week.

The market index came down by 1.91 points to close at 493.63 levels by the end of this week.

The pressure of the upcoming fiscal year closing has kept the investors short of cash as they are obligated to either pay the debt or omitted from getting share loans. Along with this scenario, the investors holding back to invest in the upcoming two of the appealing IPOs from next week have even further saturated the market this week.

The market turnover fell by 11 percent this week to total around Rs 378.85 million with a daily average of Rs75.77 million compared to Rs 84.91 million of the prior week.