Inflation climbs to 6.34 percent in mid-September, central bank report shows

Inflation rises to 6.34 percent while remittances and the external surplus grow

Consumer prices in mid-September were 6.34 percent higher than a year earlier, according to Nepal Rastra Bank's report on the first two months of FY 2083/84, as OnlineKhabar and Bizshala reported on Thursday. A month earlier the rate was 5.96 percent. A year earlier it was 1.87 percent. Wholesale prices rose 8.08 percent, against 2.10 percent a year before.

Remittances kept climbing. They reached Rs 436.36 billion in the two months, up 23.9 percent on a year earlier, and Rs 221.31 billion of that came in Bhadau, OnlineKhabar reported. In dollars the rise was 13.5 percent, to US$2.85 billion.

The balance of payments showed a surplus of Rs 187.68 billion, up from Rs 153.68 billion a year earlier, and the current account a surplus of Rs 169.04 billion, Investopaper reported. Imports rose 31.6 percent to Rs 401.52 billion and exports reached Rs 76.59 billion, Bizshala reported. It put gross foreign exchange reserves at Rs 4,065.78 billion, enough for 20.9 months of goods imports.

Bank lending to the private sector was 7.3 percent higher than a year earlier, OnlineKhabar reported. The report itself could not be opened for this digest, so the figures rest on the outlets' reading of it.

Why it matters: In its one-month report, published in September, the central bank put the balance of payments surplus at Rs 90.34 billion. None of Thursday's reports gives a cause for the rise in prices.

Wallet users can make up to 50 deposits a day over the festivals, Bizshala reports

A Nepal Rastra Bank circular dated Asoj 29 raises the limit on deposits into a personal wallet from 10 to 50 a day, from Asoj 31 to Kattik 8 and from Kattik 21 to Kattik 29, Bizshala reported.

Why it matters: The central bank allowed up to 40 a day for last year's festivals, Kantipur reported then. The circular itself could not be found for this digest.

Insurers have paid Rs 235 million on flood claims of more than Rs 20.9 billion

Insurers had paid Rs 235.3 million by Asoj 28 (October 14) on claims of more than Rs 20.90 billion from 2,427 policyholders at 18 companies after the Bhotekoshi and Trishuli floods, Merolagani reported.

Why it matters: By Asoj 12 only Rs 6.75 million had been paid, Kantipur reported in September.

Supreme Court upholds custody of a man held over a Rs 480 million Prabhu Bank loan

The Supreme Court dismissed a habeas corpus writ and upheld the detention of Shashidhar Sharma over a Rs 480 million Prabhu Bank loan, Clickmandu reported on Thursday. Paying instalments does not shield a borrower whose loan is found misused, the court said.

SEBON puts a draft policy for institutional investors out for comment

The Securities Board of Nepal released a draft institutional investor policy for public consultation on Thursday, Asoj 29, Merolagani and OnlineKhabar reported. It is a proposal. Nothing in it is in force.

The draft would keep an institution's investment in any one listed company within 3 to 5 percent of its total investment assets, and its equity in one sector within 20 to 25 percent, according to Bizshala. It sets indicative ranges of 20 to 30 percent for government securities and 15 to 30 percent for listed securities. Margin trading would not be allowed at first.

The board also released a draft collective investment fund policy and asked for comments on it by Kattik 15, Bizshala reported.

Why it matters: None of the reports gives a comment deadline or a start date for the institutional investor policy, and the board's own notice could not be opened for this digest.

NEPSE gains 4.67 points for a sixth straight rise as more stocks fall

NEPSE closed at 2,625.93 on Thursday, up 4.67 points, according to Kantipur. That is 0.18 percent on Wednesday's close. It was the index's sixth gain in a row, OnlineKhabar reported. Turnover was Rs 4.72 billion, Kantipur said.

Breadth went the other way. Of the stocks traded, 91 fell, 71 rose and 15 did not move, OnlineKhabar English reported. Eight sector indices gained, led by finance at 1.03 percent. Banking slipped 0.16 percent and trading fell 0.55 percent.

Rastriya Banijya Bank opens its Rs 3 billion debenture issue

Rastriya Banijya Bank's Rs 3 billion issue of seven-year debentures paying 6 percent a year opened on Thursday, Merolagani reported. The public gets 1.2 million of the 3 million units of Rs 1,000.

Share turnover more than halves in the first two months, Bizshala reports

Share turnover in the first two months of FY 2083/84 was Rs 181.45 billion, down 53.1 percent from Rs 386.74 billion a year earlier, Bizshala reported. Hydropower turnover fell 38.5 percent.

Nepal signs a World Bank agreement on an earthquake catastrophe bond, Kantipur reports

The Finance Secretary and a World Bank Group vice president signed an agreement on an earthquake catastrophe bond on Thursday, at the World Bank and IMF annual meetings in Thailand, Kantipur reported. The Cabinet had approved signing a mandate agreement for the bond on October 9, ShareSansar reported then.

The plan is a three-year parametric bond of between US$80 million and US$190 million, Artemis reported. No bond has been issued. The triggers and payout limits are still open, and so is the premium, Kantipur said.

In Bangkok the same day, Finance Minister Swarnim Wagle asked Asian Development Bank President Masato Kanda to mobilise resources for flood recovery and climate-resilient rebuilding, Bizshala reported. No amount was announced.

Why it matters: Who pays the premium has not been reported. Artemis estimated in July that the project would cost about US$20 million, premiums included.

Agriculture ministry invites proposals for a 500,000-tonne green urea plant

The agriculture ministry on Thursday invited companies, joint ventures and consortiums to propose a green urea plant of about 500,000 tonnes a year, OnlineKhabar reported. No deadline or investment figure was given.