Central bank pulls Rs 200 billion from banks in its biggest deposit auction this year

Central bank collects Rs 200 billion for 20 days, its largest deposit auction this fiscal year

Nepal Rastra Bank took Rs 200 billion out of the banking system for 20 days on Friday, Kattik 27 (November 13). It was the largest deposit collection auction of the fiscal year. Banks and financial institutions bid Rs 309.6 billion, about 1.55 times the offer, and the full amount was taken at a weighted average rate of 2.485 percent, according to the central bank's auction table. There were 37 bidders.

The previous record was two weeks old. On Kattik 12 (October 29) the bank collected Rs 150 billion for eight days at 2.5511 percent. No earlier offer this year had gone above Rs 100 billion, and the 25 auctions before that one cleared between 2.6619 and 2.7458 percent. Friday's rate is the lowest of the year's 27 auctions.

Bids could run from Rs 100 million up to the full Rs 200 billion, and lower rates got priority, Bizshala reported. The money and its interest are repaid on Mangsir 17 (December 3).

After Friday the central bank had Rs 1,249 billion in liquidity-absorbing instruments outstanding, its monetary operations summary shows. Deposit collection made up Rs 518.3 billion of that and NRB bonds Rs 400 billion. Overnight money parked in the standing deposit facility came to Rs 330.7 billion. Nothing was outstanding on the liquidity-providing side.

Why it matters: Bizshala said the auction was meant to absorb excess liquidity. None of the pages read gives the central bank's reason for making this offer larger than any before it.

Nepal SBI Bank's board proposes an 8.25 percent dividend

Nepal SBI Bank's board proposed an 8.25 percent dividend on Friday, 3.40 percent in bonus shares and 4.85 percent in cash, OnlineKhabar reported. It paid 9 percent last year, Kantipur said. The central bank and shareholders must still approve it.

NEPSE falls 6.44 points to 2,648.77 in its first session after Tihar

NEPSE fell 6.44 points, or 0.24 percent, to 2,648.77 on Friday, Kantipur reported. Bizshala and OnlineKhabar gave the same fall. Merolagani's index table shows a close of 2,648.89, down 6.32.

It was the first session after the Tihar holiday. Turnover was about Rs 3.05 billion, against Rs 3.46 billion in the previous session, OnlineKhabar said. It counted 110 stocks up, 160 down and 9 unchanged, with hotels and tourism, hydropower, non-life insurance and development banks ending higher.

Friday was the week's only session, Merolagani said before the market opened. The week closed 6.44 points down.

Gold falls Rs 12,600 to Rs 271,700 a tola in its first change since Monday

Hallmark gold fell Rs 12,600 to Rs 271,700 a tola on Friday, Kantipur and Bizshala reported. That is a drop of 4.43 percent. Silver lost Rs 155 to Rs 3,700, down 4.02 percent.

The price had not moved since Monday, November 9, when gold stood at Rs 284,300. OnlineKhabar said the new price followed the international market, and gave no world price.

Industry minister asks India to review jute duties; India shows interest in a testing lab in Nepal

Industry, Commerce and Supplies Minister Deepak Kumar Sah asked India to review its anti-dumping and countervailing duties on Nepali jute products, Kantipur and OnlineKhabar reported on Friday. He made the request to India's commerce and industry minister, Piyush Goyal, at the 31st Partnership Summit in Visakhapatnam. No decision on the duties was reported.

Sah also asked for simpler, time-bound Bureau of Indian Standards certification for Nepali cement, steel, plywood, footwear and yarn. Goyal showed interest in a BIS-standard testing lab in Nepal and told a secretary to coordinate, Ratopati and Merolagani reported. No timeline or site was given.

Ratopati put the meeting on Thursday.

Why it matters: Nepal exported Rs 10.89 billion of jute goods last fiscal year, and India set new anti-dumping duties in a notification dated September 24, The Kathmandu Post reported.

Lentil imports through Birgunj more than double in value in the first quarter, Kantipur reports

Lentil imports through Birgunj customs were worth Rs 1.165 billion from Saun to Asoj, up 123 percent from Rs 523 million a year earlier, Kantipur reported from customs figures. By weight they rose about 28 percent, to 6.81 million kg.

Soaltee Hotel's first-quarter profit rises 15.2 percent to Rs 142.3 million, Kantipur reports

Soaltee Hotel's profit for the first quarter of FY 2083/84 rose 15.20 percent to Rs 142.3 million, from Rs 123.5 million a year earlier, Kantipur reported. Service revenue grew by more than 14 percent.

Economic census lists processed for six provinces, Statistics Office says

The National Statistics Office has finished processing economic census lists for six provinces, with Bagmati still under way, OnlineKhabar reported. About 1.1 million of 1.366 million establishment records are processed. No date was given for results.

Kamala River bridge on the Postal Highway is due to open in the first week of Mangsir

The 470-metre Kamala River bridge between Siraha and Dhanusha will open from the first week of Mangsir, the Postal Highway Directorate chief told OnlineKhabar. Expansion joints, approach roads, embankments and railings are left. The contract was first awarded in 2011.

Sudurpaschim sets aside Rs 10 million for the collapsed Dodhara Chandani bridge

Sudurpaschim province has allocated Rs 10 million to rebuild the Dodhara Chandani suspension bridge, which a technical team says needs Rs 200 million and about a year, OnlineKhabar and Kantipur reported. No work has started.