Prabhu Bank Ltd into operation from today.

Prabhu Bank Ltd –a bank renamed following the merger between Kist Bank, Prabhu Development Bank, Gaurishankar Development Bank and Zenith Finance Ltd—is coming into operation from today.

Profitability of commercial banks down to 19.23pc on FY 2070/71

Profitability of commercial banks took a beating last fiscal year, as capital fund bulged, while earnings grew moderately.

Average return on equity (RoE) — a measure to gauge profitability — of 30 commercial banks stood at 19.23 per cent in mid-July, as against 22.19 per cent in the same period the previous fiscal. (The RoE was calculated by comparing capital fund of mid-July, 2013 with net profit of fiscal 2013-14 that ended in mid-July, 2014.)

Kist Bank & Prabhu Bikas Bank very close to a merger

Kist Bank Nepal and Prabhu Bikas Bank are now very close to a merger. After taking over major shares of Kist, with the help of its former chairperson, the Prabhu Group is now planning to take over the management for a smooth merger.

As part of that plan, they have reshuffled the management of Kist. CEO of Sanima Bank Kumar Lamsal has been hired as the CEO of Kist while CEO of Prabhu Bikas Bank has joined Kist as his deputy.

NEPSE Index up despite profit booking by investors

The stock index rose despite the heavy profit booking by investors on increased share prices this week — December 8 to 12.

The index gained 6.5 points — one per cent — on the week’s trading, following last week’s never-seen-before jump.

In this Bull Market, protect ourselves from the cartels' fishing net. - Expert Opinion

This is a real bull market. But, within this bull market, certainly there is influence of cartels. Among these cartels, the major two are – New Investor's Forum (an informal tie up of two major investors) and some big brokers coming together and doubling as speculators. We could see some of the companies with problem are at seventh heaven, such as KIST. The bank is in loss, it had and has major governance problem, it is surrounded with scandals and frauds, etc. But, its share price is sky rocketing and the volume of transaction is unbelievably high. Strange!

Kist & Prabhu Bikas Bank seeking merger

Kist Bank Nepal and Prabhu Bikas Bank are seeking merger, according to a reliable source, though the bank officials say that the talks were held only at the informal level.

Senior officials from both the banks have also confirmed that Prabhu is buying both promoter as well as ordinary shares of Kist in an apparent bid to facilitate the merger.

“Kist Bank and Prabhu Bikash Bank are working on a merger,” the source privy of the development told ShareSansar today. “It might, however, take some time before they sign the deal.”

NEPSE increase by 1.67 pts closing at 704.16; KIST huge transaction

Avoiding the path of correction, Nepal Stock Exchange (NEPSE) today recouped its way up to add 1.67 points in its tally. Though the market faded out in its upward movement in the late hours, it still managed to settle above yesterday’s closing at the end.
The market index today closed at 704.16 levels. In spite of profit booking from investors, the stock index seems reluctant to make corrections. Following a slight correction in the early few minutes, the market propelled its way up to the level of 708 levels.

Kist Bank’s share trading resumes

After a hiatus of nine months, share trading of Kist Bank Limited has resumed from today. This has come as a huge respite to hundreds of share traders who have invested in Kist Bank’s shares.

Trading of the shares of Kist Bank was suspended by the NEPSE after Kist signed a Memorandum of Understanding with Vibor Bikas Bank for the merger of the two BFIs back on March 21, 2013.

Rising provision, NPA threaten to cast shadow over banks’ profits

Though profits posted by most commercial banks for FY 2069/70 came as great news for the entire banking sector, the scenario might not be as rosy as it seems. 

Most of the banks have set aside huge amount of provision for nonperforming assets (NPA) to make up for bad loans.

Net profit of commercial banks up

Commercial banks seem to have recovered from shadows of bad loans made in the past, as they registered a whopping rise in net profit last fiscal year.

The net profit of class ‘A’ financial institutions increased by 40 per cent in the last quarter of fiscal year 2012-13, according to their recently published unaudited financial reports. The 31 commercial banks have earned a net profit worth Rs 20.1 billion, which stood at Rs 14.3 billion in the corresponding period of the previous fiscal year. Only Kist Bank registered a loss.

Kist Bank posts Rs 8.94 crore net loss, NPL at alarming 6.59%

Kist Bank has reported a net loss of Rs 8.94 crore for FY 2069/70, which is a very weak performance compared to the last fiscal when the bank posted Rs 10.02 crore in profit.

The bank’s deposits climbed 4.56% to Rs 21.09 arba and loans and advances increased 12.43% to Rs 16.82 arba.

Kist Bank shifts to new building

The head office of Kist Bank shifted to a new building on Sunday. According to a press statement, the new building in Babarmahal, which is close to the previous building, has total space of 100,000 square feet. As many as 16 customers can deposit and withdraw cash at a time.

Similarly, the bank has arranged 12 counters for customer service. The new building has four ATMs and sufficient space for meeting and conference, according to the statement.
src : republica

Charges filed against CEOs of Kist, Siddhartha and 16 others involved in load fraud

Central Investigative Bureau (CIB) has charged 16 people, including the former CEO of Kist Bank and Siddhartha Development Bank, for their involvement in a banking fraud.

As per a news report published in Naya Patrika, the CIB has charged former CEO of Kist Dipendra Karki with loan fraud.