Central bank lets banks push flood-hit borrowers' Asoj instalments to end of Poush

Central bank lets banks defer flood-hit borrowers' Asoj instalments to the end of Poush

Borrowers hit by the Bhotekoshi and Budhi Gandaki floods can ask their bank to push back instalments that fall due at the end of Asoj. Nepal Rastra Bank changed its Unified Directive on Tuesday, Asoj 27 (October 13), so banks may move principal and interest due then to no later than the end of Poush, Merolagani reported. That is three months.

It also covers businesses that depend on imports and exports through the Rasuwa customs point. The relief is case by case. Each bank has to look at the borrower's sales, income, cash flow, reserves and use of the loan, and grant it only where the borrower has trouble paying, according to Bizshala and Merolagani.

The central bank's circular listing shows three amendments to the Unified Directive 2082 dated October 13: one for class A, B and C institutions, one for microfinance institutions and one for infrastructure development banks. Their texts could not be read for this digest, so the clauses here rest on the outlets' reports.

The Cabinet promised flood-hit borrowers rescheduling and longer repayment deadlines on September 3, Kantipur reported then. None of the reports describes an earlier central bank step on instalments. A central bank spokesperson told Kantipur that more relief may follow once the government finishes its study of the damage.

Why it matters: The end of Asoj is Saturday, October 17, four days after the circulars. No report gives a start date, the number of borrowers covered or how much lending is involved.

Commercial banks' two-month profit rises 7.32 percent as interest-suspended loans jump

The 20 commercial banks earned Rs 17.81 billion in Saun and Bhadau, the first two months of FY 2083/84, against Rs 16.60 billion a year earlier, Bizshala reported from Nepal Rastra Bank data. That is a rise of 7.32 percent. Thirteen banks earned more and seven less. Nabil Bank made the most, Rs 1.80 billion.

Counting development banks and finance companies too, adjusted profit was Rs 19.33 billion, up 7.54 percent, Bizshala reported in a second piece. The same figures show deposits of Rs 8,380 billion and loans of Rs 6,019.62 billion at the end of Bhadau.

One line moved fast in Bizshala's figures. Interest-suspended accounts rose from Rs 60.81 billion at the end of Saun to Rs 74.77 billion a month later, up 22.95 percent.

Why it matters: A year earlier the two-month profit had fallen 6.18 percent, Beema Post reported then, so this rise follows a fall. The reports give no reason for the jump in interest-suspended accounts.

Central bank tells banks to freeze suspicious accounts over the festival holidays, Bizshala reports

Nepal Rastra Bank told class A, B and C banks and financial institutions to identify suspicious accounts and transactions over the Dashain, Tihar and Chhath holidays and freeze them promptly, Bizshala reported from a notice dated Asoj 27 (October 13). The aim is to curb electronic fraud.

Each institution must name a focal person and send that person's name, post and mobile number to Nepal Police headquarters. It must also keep monitoring staff on duty around the clock, or an email address that is watched at all hours, Bizshala reported. No other outlet carried the notice.

Why it matters: The report gives no dates for the holiday period, no deadline and no word on how a customer can get a frozen account released.

NEPSE gains 4.12 points as more stocks fall than rise

NEPSE closed at 2,599.93 on Tuesday, up 4.12 points or 0.16 percent from Monday's 2,595.81, according to Kantipur and ShareSansar. Turnover was Rs 4.74 billion, up from Rs 4.47 billion.

The index rose while the breadth went the other way. Of the stocks traded, 167 fell, 104 rose and 7 did not move, Kantipur reported. Five of the 13 sector indices gained, among them banking and both insurance groups. Life insurance led with a rise of 1.77 percent, ShareSansar's data show.

Telecom regulator fines 14 internet providers for unapproved packages and charges

The Nepal Telecommunications Authority fined 14 internet providers Rs 50,000 each for packages and rates it had not approved, and told them to drop the packages and compensate customers who ask, The Kathmandu Post reported.

President issues two ordinances amending laws on forests and land

The President issued two ordinances on Tuesday on the Council of Ministers' recommendation, one amending certain laws on forests and one on land, Merolagani reported. The report does not say what they change.

LPG companies end the cross-company cylinder swap on Wednesday, two days early

The Nepal LP Gas Industry Association said the Valley's cross-company cylinder swap ends on Wednesday and dealer sales resume on Thursday, OnlineKhabar English and Kantipur reported. It had been due to run to Friday.

Grid power reaches Hatiya in northern Sankhuwasabha

The Nepal Electricity Authority has extended the national grid to Hatiya in Bhotkhola Rural Municipality, which a micro-hydro scheme served earlier, and says the tender for the line to Kimathanka is under way, with supply due this fiscal year, Kantipur reported.

Nepal Airlines resumes Resunga flights after about four months

Nepal Airlines flew Kathmandu to Resunga in Gulmi again on Tuesday. One-way fares are now Rs 10,700 and Rs 10,500, up from Rs 7,500 and Rs 7,300, Kantipur reported.

IMF puts Nepal's growth at 3.7 percent this fiscal year, OnlineKhabar reports

The IMF's October World Economic Outlook projects Nepal's economy to grow 3.7 percent in FY 2083/84, the current year, OnlineKhabar reported on Tuesday. That is 0.9 points below the 4.6 percent it projected in April.

For FY 2082/83, the year that ended in mid-July, OnlineKhabar says the IMF puts growth at 3.6 percent. It projects inflation of 5.8 percent this year.

The government's target for this year is 7 percent, OnlineKhabar said. The World Bank also projects 3.7 percent.

Why it matters: The IMF's own tables could not be opened for this digest. The figures rest on OnlineKhabar's report.