UNESCAP Workshop

United Nation Economic and Social Commission for Asia and the Pacific (UNESCAP), Bangkok, Thailand, along with the Ministry of Commerce and Supplies (MoCS), Nepal Intermodal Transport Development Committee and Nepal Freight Forwarders Association (NEFFA) on Monday started its capacity building five days training programme.

The programme will be based on Freight Forwarding, Multimodal Transport and Logistics. "Participants will learn skills, techniques and subject matter to train other NEFFA members," said NEFFA president Rameshwor KC.

NCC Gets a Week for Price-list Display

Nepal Chambers of Commerce (NCC) has asked the government to give it a week to put up price lists in wholesale and retail shops. NCC president Surendra Bir Malakar along with other businessmen met Minister for Supplies (MoS) Rajendra Mahato and sought a week's time.

The government is doing wrong, Malakar said flaying the government's intervention in the market. "Sealing the godowns without consulting the private sector has created havoc," he said. He also accused the government of using `black marketeers' to target business- men whose warehouses were sealed on Sunday. "The government wants to establish that all businessmen are black marketeers. What is the purpose of bringing the media along on raids?" he asked. Malakar said the words `black market' and `black marketeers' should not be used.

He, however, agreed to keep price-lists in shops and said, "We just need more time. The deadline given by the Department of Commerce is too short." On Friday, DoC had told retail shopkeepers to put up price-lists in their respective shops within three days.

Minister Mahoto agreed to allow a week's time for putting up price-lists in shops. MoS secretary Prushttom Ojha said the market intervention would not be stopped.

"Growing adulteration and artificial price hike has force the government to intervene in the market," he said. He urged businessmen to be transparent in their dealings.

NT to start value-added service outside Valley too

Nepal Telecom (NT) is all set to start to start its IVR service 198 from July 30 for the first time out of Kathmandu Valley. The IVR service is used for Fault Booking and Fault Handling of PSTN service. Due to increased demand for the service outside the valley, NT will start the service as a pilot project in Bharatpur on July 30, according to NT.

Also, the bill inquiry service of PSTN phones used through IVR service 1606 will start from the same date in Butwal, Dharan, Biratnagar, Itahari, Bharatpur, Hetauda, Bhairahawa, and Pokhara exchanges. Soon the service will be extended to other cities too, said NT. Meanwhile, NT will on the same date fix the rate for Notice Board service charge. Under this service, there will be no charge for message recorded through access code 1616 in PSTN phones while the charge for notice service through PSTN/C-Phone through access code 1618 will be Re 1 per minute excluding taxes. For the GSM/Sky Phone through access code 1618 the service will charge only Airtime Charge all over the country.

Notice Board Service is a valueadded service of NT under its PSTN voicemail service. Persons using the service can post notices on the notice board and the caller can receive the notice while making a call. The recorded message can also be erased or re-recorded.

Dabur Real 8 Times More Bumper Prize Announced

Deepak Kumar Adhikari, a resident of Mahaboudhha in Kathmandu, has won the super bumper prize of `Real 8 Times More Contest' that was organized from April 7 for 12 weeks. Adhikari has got a free trip to Thailand and Malaysia for two persons. Ajaya Shrestha won the second prize of Sony Bravia 32-inch LCD TV and Sushil Poudel of Kirtipur won the third prize of Sony DVD home theatre system.

Public Development Bank in Profit

Public Development Bank (PDB) gained operating profit of Rs 10 million in the fiscal year 200809. Issuing a press statement on Monday, the bank said that it collected Rs 742.2 million and invested Rs 704.5 million. After the allocation of Rs 9,17,000 in bonus, Rs 1.54 million in income tax the bank has gained net profit of Rs 7.61 million.

Citizens' 11 Branch in Butwal

Citizens' International Bank inaugurated its 11th branch office in Butwal on Monday July 27, 2009. According to a press statement, during the fiscal year 2008-09 the bank had a deposit of Rs 11.52 billion and floated loan of Rs 8.21 billion that posted a Rs 5.5 million operating profit. The bank will soon be distributing 10 per cent of its dividend to shareholders.

Crystal Finance's Primary Share Alloted

NMB Bank has allotted Crystal Finance's primary issue on Monday. According to a press release, the company received 52,219 applications for 65,22,665-unit of shares. But only 11,242 applicants including 24 employees received 2,10,000 units of primary issue. The primary issue of Crystal Finance was floated on June 16-19.

Moneygram Samsara tie up for remittance

MoneyGram International (MI) and Samsara Pvt Ltd today announced their alliance to add MoneyGram's money transfer service to Samsara's 200 partner locations in Nepal.

Remittance is the backbone of the Nepali economy. "In recent years, remittance agencies have been playing a key role in facilitating the remittance inflow through banking channels," said Pradeep Bhattarai, assistance director of Nepal Rastra Bank on the occasion.

"The Monetary Policy for the fiscal year 2009-10 estimates that remittance touched Rs 2 billion in the fiscal year 2008-09," he added.

Harsh Lamba, MoneyGram's regional director for South Asia, said this association between the two agencies will greatly help Nepalis receive remittance easily through formal channels. "Customers should be educated and encouraged to use formal channels," he added.

The number of remittance agencies has not only increased in the recent days but their reach has also increased. "Samsara will introduce MoneyGram services to rural communities in Bardiya, Bhojpur, Dolpa, Jajarot and Salyan soon," said Tulsi Gyawali, managing director of Samsara, which plans to provide remittance services at its customers' doorsteps. "We understand how important it is to be close to the customer, and MoneyGram's global network greatly enhances the services we provide. The funds can be sent from any of MoneyGram's global agent locations and received at a Samsara branch in as little as 10 minutes," he added.

Samsara is one of MoneyGram's super agents in Nepal. Lamba said that MoneyGram comprises 1,80,000 agent locations in more than 190 countries and has a convenient and reliable network that offers affordable, reliable and convinient services.

Samsara Pvt Ltd -- a private remittance company founded in June 2006 -- is providing services from more than 350 locations covering almost all 75 districts of the country.

"MoneyGram International -- a New York Stock Exchange listed company -- is No 2 among global payment services companies that provide consumers affordable, reliable and convenient payment services," said Lamba. "It has around 1,76,000 global money transfer agent locations in nearly 190 countries and territories."

In Nepal, MoneyGram is working with three banks -- Himalayan Bank, Bank of Kathmandu and Nepal Bangladesh Bank -- and five money transfer companies -- United Remit, Krishi Premura, International Money Express, Prabhu Money Transfer and Easylink.

Despite World Bank's report that global remittance is going to fall, Nepal's remittance has seen a 55 per cent growth by the 10th month of fiscal year 2008-09. "We are also growing," said Lamba.

Spice launches S-5330 flip open phone

Teletalk Pvt Ltd -- the sole authorised distributor of Spice Mobile phones in Nepal -- has launched Spice S-5330 in the market considering the rising demand for mobile phones among customers of different age groups.

The S-5330 finally gives users a folding phone with an ideal blend of style and powerful features just for Rs 4150, said the company. This stylish Slim Music mobile with a flip is an elegant and ultra-slim model and has expandable mem- ory up to 2 GB. Users can store up to 512 songs in MP3 format.

The versatile S-5330 also has a one-touch audio player that sup ports MP3, MIDI, AMR, and WAV music for mats. "It provides the option to set your favourite song or recorded sound as your singtone," said the company.

It comes with a 1.8 inch screen which gives incredible visual experience to the user while watching images and surfing the inter net. The phone comes with 3D graphic user interface and lets the user choose among various styles.

EBL's New Service

Everest Bank Ltd (EBL) launched Everest Ghar-Dailo Banking Sewa, in six different locations of Banke district through its branch at Nepalgunj on Sunday. This new product is a revolution in the banking history of Nepal and a breakthrough in terms of banking technology, said the bank. It will help even illiterate people operate their account through thumb impression. Thus, the account operation is safe and secure.

The branchless banking service of EBL helps people in remote villages open bank account, withdraw and deposit money and receive remittance from abroad. Transactions are made through special machines available to Business Correspondents appointed at different locations.

Nepal Express Finance's New Branch

Nepal Express Finance Ltd established its branch office at Pokhara on Sunday. According to a press statement, compared to the fiscal year 2007-08 the bank got an increment of 140 per cent in its total deposit with a collection of Rs 351.7 billion in the fiscal year 2008-09. Acording to a press statement, the company registered a total operating profit of Rs 11.5 million -- an increment of 238 per cent compared to the same period last year

ICFC inaugurates its sixth branch

ICFC inaugurated its sixth branch office at Gongbu on Sunday July 26, 2009. According to a press release, the company posted an operating profit of Rs 70 million during the fiscal year 2008--09. According to a press statement, in five years of its establishment the company has a deposit collection of Rs 1.53 billion and granted loan of Rs 1.41 billion.

Nepal Development and Employment Bank's Third Branch

Nepal Development and Employment Promotion (NDEP) Bank Ltd on Sunday inaugurated its third branch office in Chitwan district. According to a press statement, during the fiscal year 2008-09 the bank collected a deposit of Rs 1.86 billion, allowed credit and investment of Rs 1.55 billion while the total operating profit of the bank was Rs 48.7 million.

Dabur Vatika Teej Festival from July 30

The eighth edition of `Dabur Vatika Teej Festival 2009' will be held in association with Direction Nepal Pvt Ltd from July 30 to August 2. The festival will feature more than 100 stalls in Kathmandu as well as 50 stalls in Pokhara of Kaski district and will house stalls dispalying various products like handicrafts, saree, kurtha, gift items, jewellery and Teej souvenirs. According to a press statement, the festival will also have 10 food stalls as well.

Global Bank's New Branch at Dadheldhura

Global Bank Ltd on Sunday inaugurated its branch office at Dadheldhura. The bank has branch offices at Kantipath, New Road, Kirtipur, Kuleshwor, Birgunj, Narayangarh, Pokhara, Baglung, Lahan, Lamki, Nepalgunj and Gaighat. It has plans to establish its branch offices at Lagankhel, Dhapasi and Jhapa in future. The bank has 24 ATM counters.

`Little guy' drags Nepse down

Nepal Stock Exchange (Nepse) today plummeted by 29.73 points to 708.11 points from last week's closing.

The first day of trading was suspended for half an hour after the index dropped by four per cent during an hour-and-a-half of the start of trading at the sole secondary market.

The market closed 4.03 per cent lower or 29.73 points less, though it resumed operation after half an hour. The investors lost confidence after a rumour spread that banks and financial institutions do not need to increase paid-up capital. "The rumour is not true," said Rabindra Bhattarai, a share analyst.

The Monetary Policy announced on Friday has not changed the minimum level of paid-up capital required.

The minimum level of paid up capital -- kept unchanged according to the policy -- is Rs 2 billion for commercial banks, Rs 640 million for development banks and Rs 200 million for finance companies. There is an unofficial rule in the stock business called the `Odd Lot Theory'. It states that when small investors buy into a stock it's a sell signal and visa-a-versa. A `small investor' is defined as someone who buys small lots or odd lots (less than one hundred shares). The reasoning is that small investor is consistently wrong about when and what to buy or sell. So if little guy is buying, it's time to sell and if the little guy is selling its time to buy.

"This unofficial rule is painfully accurate in the Nepali stock market," said one investor. The small investor consistently takes too little risk or too much risk or buys in after the market or an individual stock runs up. These are the only consistent qualities of this class and they always result in losses.

"Take a look at what the small investor has been doing lately in Nepse,"

Bhattarai said adding that they are nervous and trying to exit from the market by selling their shares whereas `the players' are comfortable and buying.

A week before the budget and a week after the budget Nepse gained, but the market on Sunday, the first day of this week, plummeted. Small investors -- fearing a further fall in the secondary market -- rushed to sell and the big investors gained from them.

`Dabur Special Hair Oil' here

Dabur Nepal Pvt Ltd has introduced an attractive new pack of its popular hair oil brand `Dabur Special Hair Oil'. Abhaya Prasad Gorkhalee, marketing manager for Dabur Nepal said that the face-lift of `Dabur Special Hair Oil' is part of the company's endeavour to delight its consumers through continuous innovation and product quality upgradation.

"This is completely backed by extensive market research to get feedback from our valued Nepali consumers," he said adding that the brand name and benefits of the product have been incorporated in Nepali in this new label accordingly.

Its natural ingredients include hibiscus that nourishes hair from root to tip making it long and strong while lemon extracts help clean the scalp and give a natural shine to dry, damaged hair.

`Dabur Special Hair Oil' is available at affordable prices in 60,100 and 200 ml packs.

NTA gets Serious Over Call-Bypass

Nepal Telecom Authority (NTA) has yesterday formed a committee to investigate on illegal call-bypass that has become a serious problem recently. The six-member committee formed under Santosh Poudel, deputy director of the NTA will prepare a report within two months.

"The NTA will prepare action plan on the basis of the report produced by the committee," said Ananda Raj Khanal, director at the Nepal Telecom Authority (NTA) -the regulatory authority of the telecom service providers. The committee has the representatives of four telecom service providers -Nepal Telecom (NT), Spice Nepal (Mero Mobile), United Telecom Ltd (UTL) and STM and an Internet Service Provider (ISP) Association.

Telecom providers are losing billions in fraudulent international calls. "NT alone is losing around Rs 1 billion because of international calls made to bypass the official gateway," said the NT. Other telecom service providers -- Spice Nepal, UTL and STM -- are also losing out. Call bypassers use V-SAT to divert international calls from the official gateway to Voice Over Internet Protocol (VoIP). VoIP is a general term for a family of transmission technologies for delivery of voice communications over IP networks such as the Internet or other packet-switched networks. The call is then transferred to the telecom client through a landline or mobile.

Such international calls show local numbers on the receiver's set.

If a local number appears on one's caller ID while receiving an international call, it is a by-passed call. International call-bypass has become a serious problem to the NTA as it is not only creating misunderstanding between the telecom service providers but also bleeding the national coffer white.

"Callers are also being cheated because the reception is unclear and it is hard to connect," Khanal said. "Getting an internet connection and a phone line is not difficult now. If one has an internet connection, one can easily bypass a call from anywhere with a VoIP device that is small enough to fit in a backpack and is easily available."

"Because there is no need to pay the service charge or the tax, these calls are cheaper for the end-user,"

he said adding that sim cards of all the telecom operators are used for bypass purposes.

The telecom operators have been blocking sim cards, when they suspect or get complaints of their sim cards being used for call bypass but NTA needs a teeth to take strong action against those involved in the fraudulent act. "We will prepare Act or do whatever needed -- after the report comes -- to control it,"

Khanal assured.

Tribhuwan International Airport to get hi-tech radar soon

Work for installing a new radar at Tribhuvan International Airport will soon be initiated. Speaking during the ninth annual general meet of Nepal Air Traffic Controllers' Association (NATCA), Minister for Tourism and Civil Aviation Sharad Singh Bhandari said the new radar would soon be installed at TIA.

The new budget has also mentioned that the installation work of new radar in Tribhuvan International Airport will be initiated to make flights more reliable and systematic. It has also stated to expand the runway to minimise air traffic problems at TIA.

NATCA is affiliated to International Federation of Air Traffic Controller Association (IFATCA) since 1992. According to NATCA vice-president Umesh Kumar Panthi, air traffic contol (ATC) service is in need of upgradation and technological tweaking.

"We are stuck with the old technology. Only when we get facilitated with the new technology can air routes get shorter, with minimised operating cost," Panthi said.

Minister Bhandari said the total cost of installing a new radar would come to from around Rs 750 million to Rs 3 billion. He also focused on infrastructure development and effectiveness in the working environment.

Ramchandra Man Singh, secretary at the Ministry of Tourism and Civil Aviation (MOTCA), said that there was a need to develop ATC as well as improve manpower and technology at par with the international level.

Director general of the Civil Aviation Authority of Nepal (CAAN) Keshav Raj Khanal said upgrading the ATC service was quite challenging.

"We do not have enough parking space and the runway problem is also there. The government should work along with us," he said.

Khanal, however,said that the TIA service budget for the new fiscal year seemed enough to carry on the maintenance work at TIA.

"We have terminal radar service which only can cover an 80-km radius and only of high altitude. Lower level coverage is also needed and we are hopeful the budget will be implemented soon," Panthi said.

The budget has also addressed the construction of International Airport in Nijgadh of Bara and construction work initiation for regional airports at Pokhara and Lumbini. Regional and other airports from located in hill and Himali area will be continued.

It has allocated Rs 250 million for upgrading airports at Rajbiraj, Janakpur and Humla, Mugu, Kalikot and Dolpa of Karnali zone and Rs 100 million for extension of Dhangadhi airport. Simra and Dhangadhi airports will be developed and equipped for landing and take-off at night.

SLR versus CRR

What Statutory Liquidity Ratio (SLR) does is it restricts the bank's leverage in pumping more money into the economy. On the other hand, Cash Reserve Ratio (CRR) is the portion of deposits that the banks have to maintain with the central bank.The higher the ratio, the lower the amount that banks can use for lending and investment.

The other difference is that to meet SLR, banks can use cash, gold or approved secu- rities whereas with CRR it has to be only cash. CRR is main- tained in cash form with NRB whereas SLR is main- tained in liquid form with the banks themselves. SLR refers to the amount that all banks require to maintain in cash or in the form of gold or approved securities. Howev er, the Monetary Policy has directed the banks to buy government bonds and securities.

The objectives of SLR are to restrict the expansion of bank credit, augment the in vestment of banks in govern ment securities and ensure solvency of banks. CRR is in the form of fiat currency stored with the central bank.

The reserve ratio is used as a tool in the Monetary Policy, influencing the country's economy, borrowing, and in terest rates. It will cause im mediate liquidity problems for banks with low excess re serves. It was increased from 5 to 5.5 per cent in the last Monetary Policy.

Monetary Policy Walks Tightrope

Reintroduces SLR,hopes to contain price hike at seven per cent

Recognising the high inflationary pressure, the country's central bank Nepal Rastra Bank (NRB) today announced a cautious and tight Monetary Policy for the fiscal year 2009-10.

"It is believed it will contribute to the prudent macroeconomic management, consolidation of the financial and external sectors and secured internal payments system to create a conducive economic environment for higher growth," said NRB governor Deependra Bahadur Kshetry, unveiling the eighth Monetary Policy.

"The existing liquidity overhang in the economy is sufficient to facilitate economic growth of 5.5 per cent," Kshetry said adding that the policy also envisions containing inflation at seven per cent.

However, the Monetary Policy -- in the last fiscal year also -- failed to contain the price hike and it is still doubted whether it will fuel growth and contain the price hike.

The policy has reintroduced Statutory Liquidity Ratio (SLR) after one-and-a-half decades to contain inflation and fuel growth.

SLR is commonly used to contain inflation and fuel growth by increasing or decreasing it, respectively.

This counteracts by decreas- ing or increasing the money supply in the system.

The commercial banks, development banks and finance companies are now required to invest in government securities six per cent, two per cent and one per cent of their total deposit mobilisation by second quarter, respectively and which will be increased to eight, three and two per cent respectively by the end of the fourth quarter.

"The old banks already have invested in government bonds and securities over the limit fixed by the policy," said Anil Shah, vice-president of Nepal Bankers' Association (NBA) and CEO of Nabil Bank.

"However, the new banks will feel the heat and it might put pressure on lending rates,"

he added.

Kishore Maharjan, CEO of Sunrise Bank agreed with Shah. "Lending rates may go up," he said.

Though the limit of paid-up capital is unchanged, the policy has made capital fund the main barometer of any finan- cial institution.

Apart from that, it has also opened the borders for domes- tic banks. They can now open branches outside the country. "The policy is flexible and can be adjusted according to the situation anytime," governor Kshetry said.

It has not changed any major rate like Cash Reserve Ratio (CRR), refinancing rates or the bank rate.

LIC Nepal Awarded

Life Insurance Corporation, Nepal (LIC-Nepal) Ltd got the Best Presented Account Award 2008 among Nepali insurance companies. The Institute of Chartered Accounts distributes the award to the companies which maintain standard in accounting.

Jyoti Bikas Bank Turns Two

Jyoti Bikas Bank (JBL) completed its one year of operation. The bank has been able to accumulate a deposit of Rs 600 million from its 7,000 customers, and floated Rs 500 million loan. It posted a profit of Rs 5 million. On the occasion of its first anniversary the bank donated Rs 50,000 to support handicapped children. It is providing 365 days banking and evening counter also.

Nepal Investment Bank Opens its 31st Branch

Nepal Investment Bank Ltd (NIBL) opened its 31st branch in Dang on Friday July 24, 2009. According to a press release, its total deposit as of July 15 stands at Rs 46,697 million and total loans and advances stand at Rs 36,827 million. Its total investment stands at Rs 7,403 million and NPA at 0.82 per cent. The unaudited net profit of the bank as of July 15 stands at Rs 914 million. It is planning to open new branches in Gaighat, Itahari, Dadeldhura, Lagankhel, Dharan and Tripureshwor in the near future.

Radhesh Pant the New CEO of Kumari Bank

Radhesh Pant has been appointed Chief Executive Officer of Kumari Bank. The former president of Nepal Banker's Association (NBA) and managing director of Bank of Kathmandu will assume office from Sunday. KBL has increased the total deposit to Rs 15.710 billion as on July 15, a growth rate of 23 per cent. It has invested total loans and advances of Rs 14.7 billion during the period -- a growth of 28.4 per cent. The operating and net profit of the bank for the fiscal year 2008-09 stands at Rs 416.8 million and Rs 268 million respectively -- a growth of 27 per cent and 53 per cent respectively over the previous year. Its NPA, one of the lowest in the sector, stands at 0.43 per cent.

Nepal, Myanmar to Restore Direct Air Link

Nepal is seeking resumption of direct air link with Myanmar after an over two-decade hiatus to promote tourism between the two countries.

The move will strengthen bilateral friendship and promote Nepal in Myanmar, sources quoted officials at the Nepali embassy in Myanmar as saying.

Myanmar and Nepal had established direct air link in 1970 but due to the internal affairs of Nepal, direct flight between the two countries was halted in 1988.

In February 2001, the then foreign minister Chakra Prasad Bastola visited Myanmar and had discussions with his then counterpart U Win Aung on maintaining friendly relations and mutual cooperation.

There was nearly no economic and trade activities between the two countries except for cultural exchange.

The resumption of direct air link between the two countries is expected to help increase the flow of Myanmarese Buddhist tourists to Nepal -- especially Lumbini, the birth-place of Lord Buddha.Nepal, along with Bhutan, joined the seven-member Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) in 2004 as the last two members of the grouping -- the five original members being Bangladesh, India, Myanmar, Sri Lanka and Thailand who were already sharing BIMSTEC.

BIMSTEC was initially founded in 1997. The reginal inititiave aims at promoting multi-sectoral cooperation for the economic and social progress of the entire region.

TCCI,Vaidhya's CSR

Tulsipur Chamber of Commerce and Industry (TCCI) and Vaidhya's Organization (VoITH) handed over 32 packects of medicine to Nepal Army battalion commander Bharat Bahadur Malla on Thursday for diarrheoa and dysentry affected in Jajarkot, Rukum and Rolpa.

ICAN Award for Himalayan Bank

Institute of Chartered Accountants of Nepal (ICAN) has awarded `Best Presented Accounts (BPA) Award 2008' to Himalayan Bank Ltd (HBL) in the banking sector, subject to prudential supervision. Evaluation of the annual report was done as per the criteria set by South Asian Federation of Accountants (SAFA).The award was distributed on the occasion of oath-taking ceremony of newly-elected council members of the Institute. Post-award, HBL will have the privilege of nomination for `SAFA Best Presented Accounts Award 2008'.

Sunrise Bank's New Products

Sunrise Bank has launched two new products, `Sunrise Lakhpati Bachat' and `Sunrise Gold Loan'. It also expanded its existing Sunrise Overdraft Savings Account (ODSA). "In the Lakhpati scheme, a customer must deposit Rs 2,510 per month for three years or Rs 3,900 per month for two years or Rs 8,070 per month for a year depending upon the type of scheme," said bank CEO Kishore Maharjan. In Gold scheme, a customer can take a loan from Rs 50,000 to rs 20,000,000 on gold collateral at 10 per cent interest from the bank's New Road branch.

NIC Bank Added Two More Branches

NIC Bank formally inaugurated its Surkhet and Dhanghadi branches on Thursday July 23, 2009. Chairman of the bank Jagdish Prasad Agrawal inaugurated the Surkhet branch. On the occasion, NIC Bank also donated an ambulance to MidWestern Regional Hospital of Surkhet. It had donated another ambulance in Lahan last week for public use. "Both ambulances were donated with contributions of the bank's customers which were matched by NIC Foundation and the bank," said Agrawal.

JCF Neck-Deep in Trouble

Janakpur Cigarette Factory (JCF) is in financial crisis and using overdraft for operational costs. It is currently at a loss of over Rs 530 million, including Rs 500 million overdraft and Rs 30 million interest.The crunch in operational capital occurred due to high maintenance costs and high wastage due to the old rotary filter cigarette producing machine and other equipment. JCF was set up 45 years ago with Russian support. It will cost Rs 440 million to change the machines. Technicians said it would require Rs 1 billion to keep the factory operating. They added that it is is suffering a monthly loss of over Rs 12.5 million due to old machinery. The management has urged the government to arrange funds by selling JCF's fixed assets like land. The factory owns land worth Rs 2.75 billion. Meanwhile, the factory is facing problems in arranging over Rs 260 million funds to be paid in gratuity funds to over 240 staffers who retired recently. Production in the factory has also been declining due to lack of modern equipment. Last year, the factory produced 1.15 billion sticks of cigarettes against the target of 2.36 billion sticks.

Dragonair to Add Flights

Dragonair on Thursday announced that it is frequency increasing flights between Hong Kong and kathmandu to five times a week from the existing thrice-weekly. The new arrangement that will be effcetive to Dhaka and Kathmandu will start from October 1. The night flight to Kathmandu from Hong Kong and the return same midnight flight from Kathmandu will both operate via Dhaka, said Dragonair. The flights will be operated using an A330 aircraft which offers greater capacity for both passengers and cargo. "We are happy to announce increased frequency of our flights to Kathmandu, which will mean better service quality for passengers travelling to and from Nepal," said Dragonair CEO Kenny Tang."Increased capacity will help meet NTB's target of one million tourists in 2011. It will also help increase the number of tours to Nepal via Hong Kong using the extensive worldwide network offered by Dragonair and sister airline Cathay Pacific."

BoK's New Board Takes The Wheel

After a little over two months, Nepal Rastra Bank (NRB) today handed over the management of Bank of Kathmandu (BoK) to the bank's new Board of Directors (BoD) led by its chairman Narendra Basnyat.
The management committee appointed by NRB -- led by coordinator Laxmi Prapanna Niroula and members Ramesh Kumar Pokharel, Prem Prasad Pandey and Murari Basnet -- was mandated to hand over the management to the new BoK board after the bank's special AGM yesterday.

BoK had yesterday elected four board directors from public shareholders -- Govinda Prasad Sharma Regmi, Bishnu Kumar Banjade, Narendra Basnyat and Dr Hem Raj Subedi -- and unnanimously selected three board directors Ramesh Nath Dhungel, Bijaya Krishna Shrestha and Satya Narayan Manandhar from among the promoters.

Apart from the four public shareholders, a fifth -- former director Balaram Neupane -- had also filed his candidacy for board director as the majority of BoK's shares is with the public. The promoters are only 42 per cent stakeholders.

Earlier on May 19, NRB had taken over the bank's management after suspending its board and sent a four-member team led by NRB executive director Niroula to oversee BoK's running. This was after the BoK board's controversial decision to `call back' Radhesh Pant from the post of managing director.
Meanwhile, Pant -- former managing director of Bank of Kathmandu (BoK) -- has joined Kumari Bank as its chief executive officer (CEO).

SMS Banking through Manjushree Finance

Manjushree Financial Institutions starts SMS banking service from Monday. Through this service depositors can get the latest information -- last four transactions and remaining amount -- of their account. The financial institution collected Rs 40 million till July 15 from `Balloon Savings' scheme introduced last month.

ACE Awarded

Ace Development Bank was awarded the Best Presented Accounts Award 2008 by the Institute of Chartered Accountants Nepal. Ace received the award thrice before and was runner-up last year. The prize is based on recognition of maintaining standards in financial indices, disclosure and report presentation.

Bank of Kathmandu's ATM at Kumaripati

Bank of Kathmandu (BoK) on Tuesday installed its new ATM terminal at ATM Lounge, Kumaripati. BOK now has a total of 19 ATM terminals.

Telecom Service Providers Vie for the Biggest Slice of the Pie

Telecommunication service providers, due to increasing competition, are upgrading their services.

Nepal Telecom (NT), Spice Nepal Pvt Ltd (SNPL) and United Telecom Ltd (UTL) -- the three major telecom service providers -- are constantly upgrading their services to capture the market.They are engaged in bringing latest and most advanced technologies in the market. One of these is Caller Ring Back Tone (CRBT) service that all the three service providers have.

Nepal Telecom (NT) started its Caller Ring Back Tone (CRBT) services in Lumbini, Dhaulagiri, and Gandaki zone from Ashad 1 and now it is available in Bheri Zone too. According to NT spokesperson Surendra Bahadur Thike, the company is also planning to extend CRBT service to Birgunj within two months. Previously, NT's CRBT service was available within Kathmandu Valley only.

SNPL -- the provider of Mero Mobile -- started Personalised Ring Back Tone (PRBT) in 2006 and it is available in all regions with Mero Mobile services. UTL started its CRBT service this Baishak (April 16), and is providing service in Banepa, Nepalgunj, Bhairahawa, Biratnagar, Narayanghat, Hetauda, Dharan and Birgunj.

With CRBT, customers of NT, Mero Mobile and UTL can download songs, music and video clips.
CRBT is an intermittent audible indication that a dialled telephone number is ringing. A ring back tone is a status indicator that the dialled number is available and that all connections through the appropriate network or networks between the originating and destination devices are either available or will be, and also that the call can be connected if someone answers the call.

The ring back tone generally starts and stops at the same rate as the ringing tone of the called telephone, but generally is out of phase, i.e., staggered in time. Personalized ring back tones recently have become popular, especially in cell phones.

Dozens of music genres and hundreds of selections are commonly available for both the ring back tone and the ringing tone. The service generally is on a subscription basis and carries an additional charge per tone selected.According to NT, except the charges of SMS and Interactive Voice Response (IVR) the charge per CRBT will be Rs 10 while Mero Mobile charges Rs 10 per song excluding taxes and monthly charge of Rs 30 for its PRBT service, said Mero Mobile senior brand manager Sanat Sharma.Through PRBT service customers can assign different ringtones for different people and for different times, Sharma added.

It is now four months that UTL has started its CRBT service in which the charge per song is Rs 12.43 per CRBT, a monthly charge of Rs 37.29 and song selection charge per minute Rs 3.73.

Ambe Steels Launched Thermex TMT

Ambe Steels Pvt Ltd launched Thermex TMT in Nepali market from Friday. The company has been manufacturing eight to 32 mm range of 500 grade Thermex TMT under the licensed agreement with HSE Gmbh. Ambe group has been producing cement from last five years.

NRB, SLCB Ink Deal

The financial information units of Nepal Rastra Bank (NRB) and Sri Lankan Central Bank (SLCB) have signed a Memorandum of Understanding (MoU).

The MOU was signed by the head of NRB's financial information unit Dharmaraj Sapkota and H A Karunaratne, head of financial information unit of Sri Lankan Central Bank during the 12th annual meeting of Asia Pacific Group on Money Laundering (of which Nepal is a member) in Australia at July 9. NRB established the financial information unit in accordance with the AntiMoney Laundering Act 2064 to prevent money laundering and pro-terrorist activities such as earning black money and investing it in terrorist activities. In this context, the financial information unit of NRB has also disseminated information related to money laundering, papers and details related to this matter in order to facilitate and support investigation processes and enhance investigation regarding money laundering in the country. Apart from this NRB, also receives such information from other countries in accordance with the provisions of the MoU signed between the two countries.

NRB is hopeful that the MoU will not only put an stop to money laundering and investment of money in terrorist activities but also help in sharing related information.

NRB is also hopeful of getting the membership of Egmont Group.

Mero Mobile Dealers Protest

Mero Mobile Dealers' Association (MMDA) has started its second phase of protest against Spice Nepal Pvt Ltd (SNPL) of the popular Mero Mobile brand saying that the company's decision to replace C M Trading as a dealer has not been implemented yet.

"Although Spice's executive members have agreed to replace C M Trading after our first phase of protest, we have still not been given the authority of the dealership by the company," said MMDA president Amar Sapkota. He added that they are staging sit-ins in the second phase. "The protest may turn more serious if the company does not fulfil our demands," he added.

MMDA is protesting since July 12 against the decision to appoint C M Trading as Mero Mobile dealer.

Sapkota said MMDA has promoted Mero Mobile for a long time and it's very unfair to them if the company appoints another dealer. MMDA has demanded Spice take back the decision at the earliest. As a part of their protest, dealers in all the 14 districts have decided not to purchase any accessories of Mero Mobile.

Meanwhile, a meeting of executive members of the company and Mero's national distributors was held.

"It is a wait-andwatch situation for us because apart from us, at least 60 other members of the association were not included in the meeting today," said MMDA vice-president Shyam Gupta.

NT's Bid to Spruce Up Image

Nepal Telecom (NT) is planning new projects in the new fiscal year that started yesterday.

In the fiscal year 2009-10, NT will distribute 2.2 million GSM mobile links, add 4,00,000 CDMA lines and 50,000 PSTN services, said NT managing director Amar Nath Singh. "NT is working to increase its reach and also trying to meet customers' expectations by providing value-added services." Along with the addition in its distribution services, NT will have a total of 70 lakh total customers with a total line capacity of 86 lakh.

During the fiscal year 2007-08 NT's total tele density was 10.12 per cent, which increased to 15.5 per cent in 2008-09. NT's current penetration rate is 66 per cent. "Our achievements till date are quite satisfactory,"

said Singh., Within six months, NT plans to extend its Broadband Internet Service (ADSL service) to 40 major cities aside from Kathmandu Valley and in all 75 districts within this fiscal year. This will generate an additional 85,000 customers. "As the demand for wireless broadband service is increasing, we are trying to increase it to one lakh lines with 3G mobile distribution under GSM service while under CDMA service NT will soon introduce Evolution Data Only (EVDO)," said Singh.

The budget 2009-10 has allocated NT a budget of Rs 45 billion of which Rs 10.59 billion is for capital expenditure.

Along with extension of services, NT is also planning to use solar power and increase the battery capacity at the BTS towers. It plans to install generators at BTS stations wherever possible.

Sony's Cybershot Launched

Nepa Hima Trade Link Pvt Ltd -- committed to providing the best camera experience for consumers -launched Sony Intelligent Auto (iAuto) in the domestic market today.

iAuto is the technology, among a range of new features, to automatically optimise camera settings for stellar imaging results apart from other features like in the latest Cyber-shot T, H, and selected W series models. It can be easily activated via the mode dial on these new cameras, said Kazuhiko Takamatsu, head of the export business marketing department of Sony Singapore.

"Keeping things simple and fuss-free for our consumers to take impressive images has always been Sony's top priority," he said adding that the new features such as iAuto technology, allow consumers to enjoy high performance imaging results effortlessly.

Sony has launched Cybershot T series, W series and S series that are available in a wide range of stylish colours.

"It is the W-series that is more popular in the domestic market," said Takamatsu.

"It has all the features of Tseries, like all-new Intelligent Auto Mode, selectable via the camera's mode dial and affordable too," he said.

"Implemented for the first time in the Cyber-shot range of cameras, the newly added Smile shutter button can be used together with Intelligent Auto mode thus capturing beautiful smiles at the optimised settings."

Sony claims to have 60 per cent market share in camera items. DSC-S930/S950 is priced between Rs 14,999 and Rs 16,999 whereas Cybershot comes for Rs 60,999.

Nepal Telecom's Balance Transfer

It has been10-days that the balance transfer facility of Nepal Telecom (NT) has been halted due to technical snag. Balance transfer facility in GSM prepaid mobile service was halted since July 7. Its not the first time NT's balance transfer facility has failed. "It's a technical problem and we are undergoing its maintenance," said Surendra Bahadur Thike, spokesperson of NT. It's been around one year that NT brought security system under its balance transfer service. The balance transfer system comes under the USSB technology. Due to misuse of the balance transfer system under USSB technology, NT included security code while making balance transfer.

However the balance transfer system again faced the same problem, which NT states would be solved soon. -- HNS SMScharges (excluding tax) UTL UTL Rs 0.50 UTL NT Rs 1.00 UTL Mero Rs 1.00

UTL Upgrades Cell Number to 10-digit

United Telecom Ltd (UTL) has increased its seven-digit number to 10-digit from today. The new format of 10digit starting with 97 is followed by 2 -- the operator code for UTL -- and area code with one digit code for Kathmandu and two digits out side the valley for limited mobility service of UTL's prepaid and post paid mobile phones was allocated one-and-a-half year ago.

"The 10-digit number requirement for UTL mobile service that was allocated long ago is being implemented," said Ananda Raj Khanal, director of Nepal Telecommunication Authority (NTA).

"Along with the 10-digit number UTL can accommodate more subscribers in its network, Khanal said adding that UTL network can increase its number of subscriber as it can accommodate more with 10-digit number.

Meanwhile, Madan Singh, general manager at the UTL said that with the new 10-digit number UTL would be more competitive. UTL has at present about 1.55 lakh users.

Along with 10-digit number, UTL has also started its Short Message Service (SMS) service with Nepal Telecom (NT), and Spice Nepal Pvt Ltd (SNPL) -- the provider of Mero Mobile.

"Itsbeen 15 days since we have started SMS ser vices with other service providers," Singh informed adding that UTL already had the facility to send SMS but it was not implement ed. "Now UTL users can send SMS to NT and Mero Mobile holders," he added.

Mahalaxmi Finance Opens Branch at Hetauda

Mahalaxmi Finance Ltd (MFL) on Monday July 13, 2009 opened its new branch in Hetauda. Along with this branch, the financial institution has five branches. Mahalaxmi Finance is looking to merge with four other financial institutions in order to grow into a Class-A commercial bank.

Sanima Bikas Bank's 2 New Branches

Sanima Bikas Bank opened new branch each in Chuchhepati and Suryabinayak. The Bank that offers complete banking products and services has also introduced its second ATM machine at Suryabinayak branch, Bhaktapur.

Global Bank's 2 New Branch

Global Bank Ltd (GBL) opened a new branch at Udaipur on Sunday July 12, 2009 as well as one in Dandeldhura on Thursday. These branches have ATM facilities also. With branches in and outside the Valley, Global Bank also has 23 ATM machines for customer comfort.

BOK's New ATM

Bank of Kathmandu (BoK) installed its new ATM terminal at its Tripureshwor branch. BoK now has a total of 18 ATM terminals from where services such as cash withdrawal, balance inquiry, mini-statement printing etc can be availed.

NCC ATM in Butwal

Nepal Credit and Commerce Bank Ltd initiated its ATM service at Butwal and Siddharthanagar on Tuesday. According to a press note, the bank has ATM counters at Baghbazar, Chabahil, Kumaripati in Kathmandu Valley and in Pokhara, Narayangarh and Biratnagar. The bank is planning to start its ATM services in Birgunj of Parsa outside the Kathmandu Valley and Thankot.

Mero Mobile Winners

Manju Chalise Sharma from Kantipur Marg, Tinkune (Kathmandu), and Padam Bahadur Aale from Chettrapur, Chitwan, won a motorcycle each under the ‘Mero Mobile Mero Jindagi’ scheme. Mero Mobile introduced the scheme on Baisakh 1st with a targeted ending date of Asadh 16. “The scheme offers the chance to win an apartment at Suncity Apartments — fully furnished, a motorcycle each for two and cash prize of Rs 5,555 each day for individuals,” said the company. Participants of this scheme include pre-paid users of Mero Mobile who have to use the talk time of Rs 600 and post-paid users who have to use the talk time of Rs 1500.

Money Transfer Deal

Laxmi Bank has signed a money transfer agreement with Trans-Fast Remittance LLC, US. Under the agreement, expatriate Nepalis living in the US can remit money to their friends and family back home through any of the 1,800 Trans-Fast office across the US. Beneficiaries in Nepal have the option of either collecting cash through a payment network of 400+ agents across the country or have the money deposited directly into their accounts at any of Laxmi Bank’s branches. It already is a major player in bringing money home from migrant workers in the Gulf and Malaysia.

Remittance Better than Last Year

By the end of the first 10 months of the fiscal year 2008-09, remittance touched Rs 169.17 billion — a 55 per cent increase in comparison to the same period in the fiscal year 2007-08, according to a Nepal Rastra Bank (NRB) report. During the same period the last fiscal year, the country received Rs 142.68 billion remittance.

However, releasing a new migration and remittances brief at the concluding ceremony of an International Diaspora and Development Conference, Word Bank said that remittance flows to developing countries are expected to be $304 billion in 2009, down from an estimated $328 billion in 2008.

“Remittance flow to developing countries will decline by 7.3 per cent in 2009,” WB predicted. The predicted decline in remittances by -7.3% this year is far smaller than that for private flows to developing countries. According to World Bank, remittances are relatively resilient because while new migration flows have declined the number of migrants living overseas has been relatively unaffected by the crisis. However, sources of risk to the outlook include uncertainty about the depth and duration of the current crisis, unpredictable movements in exchange rates and the possibility that immigration controls may be tightened further in major destination countries.

“There is a risk that rising unemployment will trigger further immigration restrictions in major destination countries. Such restrictions would curb remittances more than forecast and would slow the global recovery in the same way as protectionism against trade would endanger a global upturn,” explained Hans Timmer, Director of World Bank’s Development Prospects Group.

Remittances have slowed in many corridors since the last quarter of 2008. In line with a recent downward revision in World Bank’s forecast of global economic growth, the new update (2009-2011) highlights the impact of the present financial crisis on the remittance flows and, describes broad regional and country specific trends.

Remittance flows to Latin America have been falling in large part because of a slowdown in the US construction sector. The new forecasts show a -6.9 percent decline in remittances for the Latin America and Caribbean region.

Sub-Saharan Africa is also likely to experience a - 8.3 percent slowdown in its remittance flows. However, flows to South Asia and East Asia have been strong; but remittances are expected to decline somewhat in 2009. India, China and Mexico retain their position as the top recipients of migrant remittances among developing countries.

Smaller economies such as Tajikistan, Moldova, Tonga, Lesotho, and Guyana are the top recipients in terms of the share of remittances in GDP; which exceeded a quarter of their GDP

“Remittances provide a lifeline to many poor countries.

Although they remain resilient, even a small decline of 7 or 10 percent can pose significant hardships to the people and to governments, especially those facing external financing gaps. Reducing remittance fees and developing innovative tools to leverage remittances for financial inclusion and capital market access should be a part of our response to the financial crisis,” said Dilip Ratha, Lead Economist in the Development Prospects Group of the World Bank.

Mero Mobile Dealers' Protest

The Mero mobile dealers have protested against the decision of appointing C M Trading as its dealer.

Speaking at a press meet president of Mero Mobile Dealers Association Amar Sapkota said that they have promoted Mero mobile for long and it’s very unfair to them if the company appoints another dealer as its key dealer. They also demanded to take the decision back as soon as possible. As a part of their protest, the dealers of all the 14 districts have decided not to purchase any accessories of Mero mobile from July 14 and will hold a sit-in protest on July 16.

Standard Finance's Rights Issue

Standard Finance Ltd (SFL) has notified a last date to apply for its rights shares in the ratio of 1:5. The request letter from the desired shareholders has been collected — as issued by the finance company. Apart from this, the company also stated that it will initiate its business from Kamalpokhari, Narayanchaur and Naxal branches.

Capital Merchant Bank's New Branch

Capital Merchant Banking and Finance opened its new branch at Battisputali and Rabibhawan and also started ATM and ABBS services from Monday. The branch was inaugurated by the president of the company, Bijyan Prashad Poudel. During the programme, Poudel assured that the company will provide modern and standard facilities and services. He added that the ATM and ABBS services will be provided in the Pokhara and Butwal branches as well. The paid up capital of the bank is Rs 37.38 million and deposit and credit of Rs 1.9291 billion with provided loan and investment of Rs 2.0563 billion.

Reliance Finance Permitted

Nepal Rastra Bank (NRB) has permitted Reliance Finance Ltd (RFL) to operate in Kathmandu district. The finance company promoted by industrialists and other professionals has Rs 250 million authorised capital, Rs 200 million issued capital and Rs 140 million paid up capital. It will issue 30 per cent shares of issue capital to the people. The promoters are Kush Prasad Malli, Anil Shrestha, Chinkaji Shrestha, Sur Krishna Baidhya, Tilak Bahadur Chand and Mukunda Raj Pandey.

IME Financial's Scheme

IME Financial Institution Limited (IMEFIL) has introduced two new accounts with attractive interest rates. The new ‘Prafulla Deposit’ scheme aims to provide 8.5 per cent interest while the employeecentric pension plan will provide 10.15 per cent interest on annual basis. IMEFIL has a deposit of Rs 1.86 billion from 26,000 clients and has invested Rs 1.7 billion with 1,060 lenders.

Butwal Finance in Nepalgunj

Butwal Finance Ltd (BFL) opened its third branch at Dhamboji of Nepalgunj on Thursday. The branch was inaugurated amid a function. Around 400 people opened accounts on the first day of opening with Rs 15 million deposit. It has been providing banking services in Kathmandu, Pokhara, Butwal, Bhairahawa, Nawalparasi and Dang.

Kist Remit Starts

Kist Bank started Kist Remit that will initially serve clients of Bahrain and other Gulf countries. Customers can avail of the facility from any of the twenty-six branches of Kist Bank. Kist Bank opened its 26th branch at Durbar Marg on Sunday July 12, 2009. Kist Bank chairman Rajendra Shakya inaugurated the branch. The has eight branches within the valley and eighteen outside the valley, a total of twenty-six branches.

Machhapuchhre Banks new ATM

Machhapuchhre Bank opened a new ATM at Khairenitar, making it to a total of 31 branches. The bank has also targetted to install ATM services at 10 more places.Apart from the SCT Card, the customers can use international cards like Visa Card, Visa Electron, Visa Plus, Master Card, Master Card Maestro and Cirrus Card. The bank provides ABB, internet banking, mobile banking, ATM, online mobile bill payment, telephone bill payment, locker facilities, 365 days banking and more facilities.

Citizen Banks 10th Branch

Citizens’ Bank International opened its tenth branch at Narayanghat on Sunday. Bhola Bikram Thapa, member of the board of directors of the bank, inaugurated the branch that offers various savings and loan schemes along with ATM, remittance and other facilities.

Everest Bank Ltd tie up with Bank of China

Everest Bank Ltd (EBL) has tied up with Bank of China (BoC) by opening a Nostro Account to facilitate trade finance and remittance between Nepal and China. Nepali traders can open LC, transfer and receive and send money directly from and to China. It wil also promote remittance facility between Nepal and China. EBL has already tied up with Standard Chartered Bank, American Express Bank, CitiBank, Commerz Bank, JP Morgan Chase Bank, Punjab National Bank, and HDFC for the transaction of US dollar, Euro, GB pound, Australian dollar, Japanese yen and Indian currency from 12 places in seven countries. EBL has slso organised an ‘Importer Meet’ on July 11.

NIC Bank in Lahan

NIC Bank started its Lahan branch from Monday July13, 2009 . Chairman of the bank Jagdish Prasad Agrawal inaugurated the first private commercial bank’s branch in Sagarmatha zone. To coincide with its 10th anniversary celebration, an ambulance to be managed by Marwadi Sewa Sadan, Lahan, was also donated for the local community. The ambulance was donated from the contributions made by the bank’s customers that were matched by the bank and NIC Foundation.

New Samsung Digital Still Cameras

Him Electronics introduced an excellent series of Digital Still Camera, from the Global No 1 - Samsung

“Samsung Digital Still Camera has been awarded the TIPA Awards and the Best Product Award from ELSA. It was also awarded by Good Design and Red Dot Design Award,” said the company. Samsung Digital Still Camera with its 12.2 megapixel can be captured easily striking appearance and lustrous body easily catches the eye.

They provide a fine image with high picture quality. These compact digital still cameras have Beauty Shot, 3.0” Intelligent LCD, 24mm Ultra Wide Angle 10x Optical zoom and High Sensitivity ISO 3200 that can effectively reduce possible noises in super speed sensitivity mode for clear images. The camera also has Dual Image Stabilization and Built in HDMI and Auto Contrast Balance.Samsung, being the world leader in electronic appliances always brings new and innovative technology in the market.

Following the trend, the new digital camera also promises to be improved and better than before. Him Electronics also provides a 2GB memory card for free and warranty period of a year along with the purchase of any Samsung Digital Still Camera.

Levi's Outlet Opens at City Center

Levi Strauss & Co — one of the largest apparel brands — has opened its showroom in NLIC City Center at Kamaladi on Saturday. Levi’s is world famous among youth for generations. The company has been selling quality jeans in 110 countries. “The price of Levi’s tops starts at Rs 790 and jeans starts from Rs 1,390 in the franchise.”

Rumpum Prize

Asian Thai Foods — manufacture of various successful brands like Rum Pum, 2PM Noodles, Preety Noodles, Miteri Noodles, MaMa Cheese Balls, Krazy cheese balls and KrumKruwa — announced the launch of its new scheme ‘Rumpum ma Gadgad Sathma Nagad’ on Monday.

The scheme offers up to Rs 1 lakh in cash. “Rumpum, the highly successful flagship brand of Asian Thai Foods, has been successful in keeping its consumer happy with its quality, delicious taste and aroma,” company said.

Weekly Share Update

The shareholders of all the major sub-groups — commercial banks, development banks, finance companies, hydropower and others — gained this week as these sub-groups propelled the Nepse to 702.88 points. The Nepse surged by 35.45 points to 702.88 points from last week’s closing of 667.43 points in a week after a long spell of bearish trend. The investors looked hopeful that the budget would bring some relief to them like the capital gain tax would come down to 10 per cent from the present 15 per cent. The shareholders of commercial banks and development banks subgroups posted a whopping gain as they gained 51.54 points to 736.57 points and 44.31 points 744.66 points in five day trading this week

Similarly, the contribution of Group-A companies — the blue-chip shares in the domestic market — also increased to 44.36 per cent against week’s 24.69 per cent. However, the transaction has decrease by 17.36 per cent to Rs 382.31 million against last week’s increase of 103.88 per cent.

The 78-scrip sensitive index also flared by 10.73 points to 188.09 points from last week’s closing of 177.36 points. The float index — calculated on the basis of up real transactions — also gained 3.38 points to close at 67.47 7points from last week’s closing of 64.09 points. This week Nepal Bangladesh Bank (with Rs 62.37 million) topped the chart in terms trading amount followed by Bank of Kathmandu (with Rs 36.86 million), NIC Bank (with Rs 36.85 million), IME Finance (with Rs 19.59 million) and National Hydropower (with Rs 18.92 million). In terms of number of share units traded also Nepal Ban gladesh Bank topped the chart with Rs 62.37 million transaction of 2,49,000-unit shares changing hands, wh ile Pashupati Development Bank topped chart in terms of number of transactions

Kasthamandap Development Bank Opened 10th Branch

Kasthamandap Development Bank Ltd (KDBL) opened its 10th branch in Pokhara of Kaski district. Chairman Jagannath Gyawali inaugurated the branch amid a function on Thursday. KDBL collected deposit Rs 1.48 billion and gathered an investment of Rs 953.1 million in the first nine months of the current fiscal year. The bank has operating profit of Rs 9 million in the same period

Sanima's Branch

Sanima Bikas Bank Ltd added two more branches — Narayangrah and Pokhara — on Friday. Sanima’s director-duo Pankaj Adhikari and Bharat Kumar Pokhrel inaugurated the Narayangarh and Pokhara branches, a press note read. The bank collected deposit of Rs 3.08 billion, investment Rs 4.02 billion and capital of Rs 768 million

NIC Bank in Gaighat

NIC Bank opened its 20th branch at Gaighat of Udayapur district on Friday. The new branch is providing all modern banking facilities like deposit and lending, trade finance, remittance, ATM and debit card services and SMS banking. The bank registered an operating profit of Rs 510 million in the first eleven months of the current fiscal year, 37 per cent more than in the same period last year.

Himalayan 23rd Branch

Himalayan Bank Ltd (HBL) opened its 23rd branch in Bidur, headquarters of Nuwakot district on Thursday. HBL chairman Manoj Bahadur Shrestha inaugurated the Trishuli branch amid a function attended by bankers, businessmen and locals. The bank has deposit of Rs 33.32 billion and investment of Rs 25.30 billion in the first eleven months of the current fiscal year-end. The bank got operating profit of Rs 1.01 billion during the period. HBL also provides ATM and debit card services from the new branch.

Everest Bank's 32nd Branch

Everest Bank Ltd (EBL) opened its 32nd branch in Lagankhel of Lalitpur district on Thursday. Federation of Nepalese Chambers of Commerce and Industry ) president Kush Kumar Joshi inaugurated the branch while the ATM was inaugurated by Lalitpur Chamber of Commerce president Naresh Kumar Shrestha.

Yeti’s Pilatus Porter ports at TIA

Yeti Airlines’ second brand new Pilatus Porter (PC 6) aircraft landed at Tribhuvan International Airport (TIA) this afternoon. “The aircraft has flown direct from the factory to TIA,” said Yeti Airlines. It has a PT-6A-27 engine made by world renowned engine manufacturer Pratt & Whitney. There are 266 PC-6s in operation all over the world. Pilatus Porter has excellent short take-off and landing (STOL) performance and it is a multipurpose airplane designed and built since 1959 by Pilatus Aircraft Ltd in Stans, Switzerland. The first flight of Pilatus Porter was operated on May 4, 1959. Pilatus Porter is celebrating its 50 years of production

Fifty years ago, during the Swiss Dhaulagiri Himalaya Expedition in May 1960, Pilatus Porter (PC-6) was used for transportation of climbing equipment. The name of the PC-6 at that time was ‘Yeti Himalaya’.

“It is a coincidence that the airline bringing the Pilatus Porter to Nepal after 50 years is also Yeti Airlines,” according to Yeti Airlines that is planning to bring in a third PC-6. PC-6 is practical for almost every function as a sky cab. It is used for passenger and material transport, medical and emergency service, measurement and photo flights, with spraying equipment for agricultural work and for fire fighting.

It can land equipped with skis on glaciers and with floats on water and is an ideal airplane for parajumping also PC-6 fixed wing aircraft made the first world record of landing at an altitude of 5750m in 1960. Yeti Airlines – established in May 1998 – has 14 aircraft including PC 6 in its fleet. The airlines has started its flight from Kathmandu to Lukla, the gateway to Mt Everest, the highest point on earth. This fleet of domestic airlines has been serving the isolated population in the remote mountain areas, providing the only means of transportation and connection to the outside world.

“Yeti has has the biggest domestic flight network and flies to almost all destinations in Nepal,” claimed the airlines. Nepal Airlines Corporation (NAC) had also operated three Pilatus Porters from 1961 to 1998. Yeti airlines is planning to revive PC-6 operation in the remotest areas of Nepal. “It will use the currently unused airports such as Syangboche, Jiri, Langtang, Dhorpatan and Kalikot which have long enough runways to suit the PC-6,” said Vijay Shrestha, executive director of Yeti Airlines Domestic (P) Ltd.http://yetiairlines.com/index.php

Yamaha Exchange

Rasik Automobiles and Das Auto Enterprises, authorized dealers of Morang Auto Works (MAW), are organizing Yamaha Super Exchange Camps at Lainchaur and Bhaktapur, respectively. According to MAW, the Lainchaur camp is open from July 8-11 and Bhaktapur camp will open from July 9-11. Both camps are offering sure-shot scratch card offers between Rs 5000 and Rs 100,000 on the purchase of Alba ES motorcycle. A straight discount of Rs 10,000 is available on cash and finance purchase of Crux, Alba and G5 motorcycles.

Cash discount of Rs 5,000 is available on FZ-16 and Gladiator SS/RS

RBB Evenin Counter

Rastriya Banijya Bank (RBB) Tansen branch is planning to upgrade its service in the next fiscal year 2009-10. The branch is starting an evening counter from July 16, a press note issued by branch manager Shree Bahadur Ranabhat said. The bank also plans to provide automatic teller machine (ATM) in Tansen soon. The branch has been providing banking facilities in Palpa since the last 45 years.

Nepal Bank's New ATM

Nepal Bank Ltd (NBL) opened an ATM in its Narayangarh branch on Monday July 6, 2009. The ATM centre is linked to STC network which has the largest network of 247 ATM machines and 1400 franchises. It can be used in over 1,000 ATMs of neighbouring India. NBL is planning to expand ATM service in 20 more places for 100,000 customers.

SBI's CSR Initiative

As part of Corporate Social Responsibility (CSR) initiatives on the occasion of its 16th anniversary, Nepal SBI Bank provided cash support to 10 students from Shree Nandi Madyamik Vidyalaya, Naxal, for meritorious performance in the SLC Examination 2008. Support to the students will assist them in pursuing their next level of studies. Bank chairman Bal Krishna Shrestha handed over cheques and letters of appreciation to the students at a function held on the school’s premises in the presence of bank managing director N K Chari. Senior officials of the bank as well as teachers and students of the school were presented on the occasion.

NT’s Balance Transfer in Sudden Coma

Due to technical problems, the balance transfer facility in GSM prepaid mobile service has been disabled.

Nepal Telecom (NT), one of the telecommunication service providers here, today faced a problem in the balance transfer system.

The process has halted since 4 pm July 7, 2009. According to NT spokesperson Surendra Bahadur Thike, due to some technical problem in the system the balance transfer facility has failed. “We are trying to solve the problem,’’ he added though he was not sure regarding the recovery of the system. “It could take some time, we have forwarded messages regarding the technical problem the system is facing,’’ Thike said.

This is not the first time that NT’s balance transfer system has failed. It is now a year that NT brought the security system in its balance transfer service. The balance transfer system comes under USSB technology

“Earlier too, we had faced a problem in NT’s balance transfer system under USSB technology. However, as the system was misused we introduced a new system with a security code while transferring the balance and then the problem was solved,’’ said Thike. He added that the current problem would be solved at the earliest

Meanwhile, NT’s all other services are functioning without any glitch whatsoever.

Play hard with Royale Play

Asian Paints announced the beginning of a new era in ‘wall fashion’ by launching its latest decorative offering — Royale Play. Royale Play is a collection of innovative and ready-to-use special effect paints that allow users to unleash their creativity on walls. Now along with colour, paint consumers in Nepal can give their walls textures, patterns and a range of fashionable finishes by using specially designed ‘application tools’ from Asian Paints.

“Using a bit of imagination, special effect tools and palette of vibrant colours, Asian Paints consumers will now be able to create numerous eye-catching special effects that give walls a distinctive look and feel,” said Soumitra Roy, general manager of Asian Paints Nepal. “Royale Play has been a huge success in the Indian market where it was launched a few years ago and we are delighted to introduce this product in Nepal,” he added.

Int’l Trade Agreements to Be Fulfilled Despite Crisis

Despite the global financial and economic crisis, countries continue to rely on the conclusion of international investment agreements (IIAs) as a means of promoting foreign investment and attendant benefits, UNCTAD’s latest IIA (International Investment Agreement) Monitor reports. The first six months of 2009 saw the conclusion of 25 bilateral investment treaties (BITs) and six other international agreements with investment provisions — a development that further strengthens and expands the current international investment regime. This is line with the last year’s trend, when the network of IIAs continued to expand, with the number of newly concluded double taxation treaties (DTTs) (75) and other IIAs (16) exceeding those for 2007 (69 and 13, respectively).

With 59 new agreements, the number of BITs concluded in 2008 also was significant. This suggests that there may be a role for the international investment regime to play in responding to the global economic and financial crisis. Among other things, IIAs may be a way of effectively promoting foreign direct investment (FDI) — this is particularly the case for agreements that contain effective and operational provisions on investment promotion — and by stemming the rising tide of protectionist dangers during the financial crisis. To play such a role, the IIA Monitor says, numerous substantive and procedural questions should be dealt with, including how to ensure a balance in IIAs that grants policy makers sufficient flexibility to respond to the financial cri sis and how to ensure that investorState dispute settlements involving crisis-response measures can be handled in a manner responsive to their particular challenges.

The report says that at a broader level, key systemic considerations also need to be addressed regarding the interaction between the global financial system and the international investment regime, with a need for coherence between the two regimes, regulating the interwoven and inter-related global long-term and short-term capital movements.

FNCCI Call to End Scrap Tax

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to end the scrap tax in the coming budget. A delegation led by FNCCI president Kush Kumar Joshi met Minister for Local Development Purna Kumar Sherma Limbu and asked him to abolish the tax.

FNCCI was moved to action when district authorities call the tender for scrap tax recently. The district development committees of Kaski, Makwanpur, Nawalparasi and Rautahat have called for scrap tax tender and other VDCs are following them. “The tender must be stopped first,” the umbrella organization of entrepreneurs argued.

The government and the FNCCI had signed an understanding to end scrap tax by fiscal year 2009-10. Minister Limbu as- sured the delegation saying their demand would be addressed in the coming budget. “It will be adjusted,” he said. The scrap tax is used in local development projects at the district level. Local Self-governance Act has granted the right to district development committee to collect scrap tax but due to lack of a monitoring mechanism, contractors have been collecting it unlawfully

FNCCI has been decrying it as a cause of the price hike.

Promote Development Banks, Says NPC Veep

Development banks should be promoted to develop rural areas and raise the living standards of people, said National Planning Commission vice-president Dr Yuvraj Khatiwada while speaking during the eighth anniversary celebration of Sana Kisan Development Bank Ltd’s (SKDBL) here today. He focused on the development of an enabling environment for the development of people in rural areas. According to Khatiwada, development banks should be promoted so as to develop rural areas and raise the living standards of people there.

“Though the number of financial institutions is increasing, it will not affect the number of customers going to any particular financial institution,” said Dr Khatiwada adding that for this budget they have advised the government to include special package for those taking loan and making timely payback.

SKDBL managing director Upen- dra Bahadur Karki said the bank has prepared a four-year business plan from 2009-2013 and will soon implement it. The bank aims to reduce poverty by increasing its services by 15 per cent compared to the current level of service.

The bank has total paid up capital of Rs 123.1 million in which Agricultural Development Bank has Rs 44 million, the government has Rs 20 million, Nepal Bank Ltd has Rs 50 lakh, Nabil Bank has Rs 2 million and there is Rs 52 million of 178 small farmers’ cooperative companies. The total number of credit transactions till date is 223, and total number of investors is 47,77,032.

Within another three years, the bank through 334 micro finance companies will be extending its services to rural areas and within the same period it has targeted to flow loan of Rs 3 billion. According to Karki, government should work out more programmes so that there is no lack of financial resources.

Meanwhile, Khatiwada urged for the promotion of products made by people from rural areas. “Products from rural areas must be recognized and brought to the market to make these known,” said Khatiwada.

Capital Merchant Banking

Capital Merchant Banking and Finance opened its new branch at Battisputali and Rabibhawan and also started ATM and ABBS services from Monday. The branch was inaugurated by the president of the company, Bijyan Prashad Poudel. During the programme, Poudel assured that the company will provide modern and standard facilities and services.

Machhapuchhre ATM

Machhapuchhre Bank on Monday July 6, 2009 opened a new ATM at Khairenitar, making it to a total of 31 branches. The bank has also targetted to install ATM services at 10 more places in the country. Apart from the SCT Card, the customers can use international cards like - Visa Card, Visa Electron, Visa Plus, Master Card, Master Card Maestro and Cirrus Card.

Rum Pum Cash Prize

Asian Thai Foods — manufacturer of various successful brands like Rum Pum, 2PM Noodles, Preety Noodles, Miteri Noodles, MaMa Cheese Balls, Krazy cheese balls and KrumKruwa — announced the launch of its new scheme ‘Rumpum ma Gadgad Sathma Nagad’ on Monday. The scheme offers up to Rs 1 lakh in cash. “Rum Pum, the highly successful flagship brand of Asian Thai Foods, has been successful in keeping its consumer happy with its quality, delicious taste and aroma,” claimed the company.

Pepsi Scheme Winners

The two lucky winners of this week under the ‘Make Your Dream Team’ sequel campaign of Pepsi — to win an all expenses paid three-night and four-day trip to Bangkok and Pattaya are Deepak Kumar Bohara from Chitwan and Surendra Bajracharya from Tansen, Palpa. Customers can make their Dream Team — collecting the crowns featuring top notch International footballers like Thierry Henry, Cesc Fabregas, Kaka, Lionel Messi, Fernando Torres and Frank Lampard. “There are other exciting prizes like i-Pods, Reebok branded footballs and Tshirts to be won every week,” said the company.

Global Bank's New Branch at Kuleshwor

Global Bank started its new branch along with a new ATM at Kuleshwor from Monday July 6, 2009. Within two years, the bank has 20 ATMs. Apart from existing branches, it has targetted to start branches in Nepalgunj, Kailali, Dadeldura, Udaypur, Lagankhel, Dhapasi and Jhapa and add four more ATM counters in different parts of the country.

Govt Flops at Price Hike Control

The government has completely failed to control the price hike in food commodities and the overall price hike that still hovers close to 13 per cent. “The year-on-year (y-o-y) consumer price index rose to 12.9 per cent in mid-May 2009 compared to 9.2 per cent in the same period last year,” according to the current macroeconomic situation based on the first 10 months’ data of current fiscal year published by Nepal Rastra bank (NRB).

The inflation, in the review period, was driven mainly by 16.5 per cent price rise in food and beverages group. However, the price index of non-food and service group also increased by 8.8 per cent. “In food and beverage group, sugar and sugar-related products played a key role in pushing the price hike up so that it ops at pr increased by a whopping 66.9 per cent, the report said. This is in sharp contrast to last year’s decline of 0.5 per cent. Similarly, the price indices of vegetables and fruits as well as meat, fish and eggs sub-groups increased by 33.5 per cent and 27.5 per cent respectively in the review period compared to an increase of 1.8 per cent and 10.2 per cent respectively in the same period last year.

The wholesale price inflation increased to 15.5 per cent compared to 10.1 per cent a year ago. Indian price hike plays a key role in the Nepali market. Though India’s wholesale price index has posted a negative growth by the end of May, the Indian month-on-month price hike in May is also at 10.3 per cent. The central bank’s report reveals that the government budget on cash basis remained at a surplus of Rs 6 billion in contrast to a deficit of Rs 6 billion in the same period last year. “The government has significant cash surplus of Rs 21.6 billion — including Rs 3.9 billion of previous year — with Nepal Rastra Bank,” according to the report, thought the total government expenditure on cash flow basis, increased by 25.7 per cent to Rs 127.6 billion compared to an increase of 28.2 per cent in the corresponding period of the previous year. Low growth rate of capital expenditure accounted for such a deceleration of total government expenditure

Revenue mobilisation also grew by 39.9 per cent to Rs 110.5 billion compared to an increase of 24 per cent in the corresponding period the previous year. “The government’s firm commitment to revenue leakage control, revenue administration reforms, Voluntary Disclosure of Income Scheme and significant growth of non-tax revenue contributed control to such an impressive growth of revenue mobilisation in the review period,” said NRB.

However, exports shot up by 19.8 per cent in the first ten months of the current fiscal year in contrast to a decline by 2.4 per cent in the same period last year. The rise in exports is contributed to readymade garments, textiles, GI pipe, catechu, toothpaste, pulses followed by pashmina, woollen carpets, readymade garments and handicraft.

Total imports also went up by 25.4 per cent compared to an increase of 16.8 per cent in the same period last year. Imports from India rose by 11.5 per cent and imports from other nations surged by 50.4 per cent compared to last year’s nominal import.

Overall Balance of Payment (BoP) posted a significant surplus of Rs 43.1 billion compared to a surplus of Rs 19.9 billion last year.