Central bank offers a Rs 150 billion eight-day deposit auction, its largest this year

Central bank offers Rs 150 billion in an eight-day deposit auction, its largest this fiscal year

Nepal Rastra Bank offered Rs 150 billion in a deposit collection auction on Kattik 12 (Thursday, October 29), for eight days, according to its auction listing and reports in Merolagani and Kantipur. Class A, B and C institutions could bid on the interest rate online until 3 pm. The money and its interest are repaid on Kattik 20 (November 6), Clickmandu reported.

No offer this fiscal year has been bigger or shorter. The 25 earlier deposit collection offers since mid-July ranged from Rs 18 billion to Rs 100 billion, mostly for one to three months, NRB's listing shows. The largest before Thursday was Rs 100 billion for 83 days on Saun 6 (July 22). Thursday's offer is half as large again.

Deposit collection takes money out of the banking system. Kantipur said banks are holding surplus funds that earlier withdrawals through one-year NRB bonds did not soak up. OnlineKhabar also reported the Rs 150 billion withdrawal for eight days from Thursday.

Liquidity-absorbing instruments outstanding stood at Rs 1,065.8 billion on October 17, Rs 665.8 billion of it in deposit collection and Rs 400 billion in NRB bonds, according to the central bank's monetary operations summary.

Why it matters: None of the reports read gives the auction's result: how much banks bid, how much NRB accepted, or at what rate. Earlier rounds were not always filled. In the 25 auctions to October 17 NRB offered Rs 1,116 billion and accepted Rs 1,000.3 billion, its summary shows.

Sanima Bank's first-quarter profit rises 131 percent to Rs 1.05 billion

Sanima Bank's unaudited net profit for the first quarter of FY 2083/84 was Rs 1.05 billion, up 131.13 percent from Rs 454.9 million a year earlier, Bizshala and Clickmandu reported. Its bad-loan ratio fell to 2.86 percent from 3.91 percent.

Central bank team inspecting cooperatives gets three more months after covering 16

A 10-member Nepal Rastra Bank team at the National Cooperative Authority has had its term extended by three months after inspecting 16 cooperatives in its first three, OnlineKhabar and Bizshala reported. It is to report on 60.

Laxmi Sunrise Bank's board proposes 5 percent bonus shares and 0.26 percent cash

Laxmi Sunrise Bank's board has proposed 5 percent bonus shares and 0.26 percent cash, the cash to cover tax, for the last fiscal year, Merolagani and OnlineKhabar reported. It needs Nepal Rastra Bank approval and then the annual general meeting's.

Fixed deposits' share falls to 34.7 percent as deposit rates drop, Kantipur reports

Fixed deposits were 34.7 percent of bank deposits at the end of Bhadra, against 47.9 percent a year earlier, and commercial banks' average deposit rate fell to 3.11 percent from 3.96 percent, Kantipur reported from central bank data.

NEPSE gains 31.54 points to 2,695.60 as turnover reaches Rs 8.57 billion

NEPSE closed at 2,695.60 on Thursday, up 31.54 points or 1.18 percent, according to ShareSansar's market page and Kantipur. Turnover was Rs 8.57 billion on ShareSansar's figures, against Rs 7.45 billion on Wednesday. OnlineKhabar English, which put it at Rs 8.55 billion, said it was the most in a session since April 16.

All 13 sub-indices rose. The group listed as Others gained most, 2.45 percent, with banking up 2.28 percent and hotels and tourism 2.05 percent, ShareSansar's table showed. Of the companies traded, 181 rose, 91 fell and 6 did not move, OnlineKhabar reported.

Finance ministry gives companies until the end of Poush to clear old dues and have fines waived

Companies registered under the Companies Act 2063 that have not filed returns or paid their taxes, fees and fines now have until the end of Poush 2083 (mid-January) to use a waiver scheme, Kantipur and Bizshala reported on Thursday. The Ministry of Finance decided the three-month extension on Kattik 9 (October 26). The old deadline was the end of Asoj.

The scheme waives accrued taxes, fees, interest and fines, both for companies that carry on and for those that deregister. The Office of the Company Registrar announced it on Asar 3, Bizshala reported then. To qualify, a company must file its returns and pay its FY 2082/83 dues by the new deadline, Bizshala said.

Neither report says how many companies are covered or how much would be waived.

Disaster relief fund holds Rs 28.28 billion and has given Rs 242 million for the Bhote Kosi flood, Bizshala reports

The Prime Minister's Natural Disaster Relief Fund holds Rs 28.28 billion, the Prime Minister's office secretary told a parliamentary special committee on Thursday, Bizshala reported. The finance secretary said Rs 242 million had gone to local bodies hit by the Bhote Kosi flood.

Foreign investment commitments fall to Rs 16.23 billion in the first quarter from Rs 35.13 billion

Foreign investors committed Rs 16.23 billion to 422 new industries in Saun to Asoj, the first three months of FY 2083/84, according to Department of Industry figures reported by Kantipur and OnlineKhabar English. The same quarter a year earlier brought Rs 35.13 billion, Kantipur reported then. That is a fall of 53.8 percent.

Asoj alone added Rs 5.10 billion from 94 industries. Tourism drew the most, about Rs 6 billion, and energy came next with Rs 4 billion. Kantipur said 410 of the 422 industries came in through the automatic route.

These are approvals, not money received. Neither report gave a reason for the fall.

Nagdhunga tunnel road to charge tolls from November 1

Vehicles using the Nagdhunga tunnel road will pay tolls from Kattik 15 (November 1), the tunnel project's notice said, according to OnlineKhabar English and Merolagani. Tolls run from Rs 65 to Rs 600 entering Kathmandu and Rs 60 to Rs 250 leaving.