NB Insurance Company Ltd entered 10 years of service on Sunday. The company has booked operating profit Rs 33 million in the first six months of the fiscal 2009-10.
It earned Rs 86.3 million from insurance fee. The insurance has seven branches, five sub-branches and a network of 1720 investors.
Sunday, February 7, 2010
Margin lending will not be lifted
Nepal Rastra Bank (NRB) rejected investor demand to lift margin saying that the interests of depositors cannot be ignored.
"NRB is more concerned for safeguarding depositors than promoting investment," said NRB acting governor Krishna Bahadur Manandhar at an interaction here today to find solutions to the capital market's problems.
The capital market has fallen to a two-year low at 515.24 points and investors have lost millions of rupees.
Though the capital market is Rs 600 billion these days transaction -- both in amount and unit shares -- have decreased.
Predicting hope, Nepal Bankers' Association (NBA) president Sashin Joshi said, "Nepali capital market is not in crisis but it needs some boost up measures."
He added that NRB should do a rethink on margin lending as banks are capable of analysing risk and benefits.
NRB took strict measures about margin lending (loan against collateral of shares) when the stock market was bullish last year. As per NRB directives, banks and financial institutions can renew loan up to 50 per cent if the lender has a good track record.
Investors have presented a 22point reform pact including increase in margin from 50 to 70 per cent, end to promoter shares in ordinary share market and appointment of new brokers. NRB has decided to issue 19 per cent of promoter shares of financial institution to public.
"Without margin lending, the capital market can't boom," said Nirmal Pradhan, an investor. According to Pradhan, increasing lending limit and stoppage of issuing promoter shares to people can help the growth of the capital market in crisis times.
Tanka Paneru, chairman of Nepse, also supported investors in stoppage of converting promoters' share to ordinary shares.
"It should be stopped for some months to make the capital market work properly," he said while assuring that Nepse would be back on track in the next six months after the introduction of central deposit system (CDS).
Finance Minister Surendra Pandey assured investors that the Ministry of Finance will solve their problems soon. "We can't compromise on the issue of safety of depositors," he said, "MoF will look for alternate procedures for margin lending."
"NRB is more concerned for safeguarding depositors than promoting investment," said NRB acting governor Krishna Bahadur Manandhar at an interaction here today to find solutions to the capital market's problems.
The capital market has fallen to a two-year low at 515.24 points and investors have lost millions of rupees.
Though the capital market is Rs 600 billion these days transaction -- both in amount and unit shares -- have decreased.
Predicting hope, Nepal Bankers' Association (NBA) president Sashin Joshi said, "Nepali capital market is not in crisis but it needs some boost up measures."
He added that NRB should do a rethink on margin lending as banks are capable of analysing risk and benefits.
NRB took strict measures about margin lending (loan against collateral of shares) when the stock market was bullish last year. As per NRB directives, banks and financial institutions can renew loan up to 50 per cent if the lender has a good track record.
Investors have presented a 22point reform pact including increase in margin from 50 to 70 per cent, end to promoter shares in ordinary share market and appointment of new brokers. NRB has decided to issue 19 per cent of promoter shares of financial institution to public.
"Without margin lending, the capital market can't boom," said Nirmal Pradhan, an investor. According to Pradhan, increasing lending limit and stoppage of issuing promoter shares to people can help the growth of the capital market in crisis times.
Tanka Paneru, chairman of Nepse, also supported investors in stoppage of converting promoters' share to ordinary shares.
"It should be stopped for some months to make the capital market work properly," he said while assuring that Nepse would be back on track in the next six months after the introduction of central deposit system (CDS).
Finance Minister Surendra Pandey assured investors that the Ministry of Finance will solve their problems soon. "We can't compromise on the issue of safety of depositors," he said, "MoF will look for alternate procedures for margin lending."
Monday, February 1, 2010
Kist's e-banking
KIST Bank Ltd recently launched Kist e-Banking.
Through this system, account holders will get the facility of deposit from their own place, remittance printout, balance check, stop payment enquiry and issue manager check. The Kist ebanking service is available at its 44 branch offices.
Through this system, account holders will get the facility of deposit from their own place, remittance printout, balance check, stop payment enquiry and issue manager check. The Kist ebanking service is available at its 44 branch offices.
Exchange offer
Distributor of Hyundai battery and inverter Hyundai Electronic Concern is offering a new Hyundai battery for any brand of old battery. It will give a fair price for even those batteries that are no longer usable. The company has brought this scheme for Kathmandu Valley only for a limited period.
QRT resource gift
Hansraj Hulaschand has been supporting the traffic police department through various programmes and as a continuity of that noble initiative; Bajaj Motorcycles has aided the traffic police of Naryanghat by providing a Bajaj Pulsar 180 motorcycle on Monday.
Earlier, the company gifted three Pulsar motorbikes to the Quick Response Team of Kathmandu Valley, in Falgun 2064 and again in Shrawan 2066. In Kartik 2066, three more bikes were given to Itahari and Biratnagar traffic police.
Earlier, the company gifted three Pulsar motorbikes to the Quick Response Team of Kathmandu Valley, in Falgun 2064 and again in Shrawan 2066. In Kartik 2066, three more bikes were given to Itahari and Biratnagar traffic police.
Only NRNs can help revive campaign
Send Home A Friend -- Nepal for all seasons', a state campaign launched on January 1, 2008, that failed to click is now getting a new angle. Nepal Tourim Board spokesman Aditya Baral said, "Along with Non-Resident Nepalis (NRNs), we are preparing to revamp the old model into a new one that will be more scientific and systematic."
Either the campaign was floated without proper homework or the government lost interest in it over time. Baral said that Nepal Tourism Year (NTY) 2011 is the nation's brand gala and the campaign will be capitalised under the same programme in cooperation with NRNs. "We are into preparations for NTY 2011, but soon we will revise Send Home A Friend campaign," said Baral.
The campaign failed to elicit active participation of NRNs, NTB, the government and Nepalese embassies abroad.
The Nepali diaspora worldwide numbers around two million of which 1.5 million are in the labour market while the remaining are students or those having settled abroad. Therefore around five lakh of the Nepali diaspora can be roped in for the campaign.
Prithvi Subba Gurung, the then minister for culture, tourism and civil aviation, launched the campaign, which was intended for Nepali diaspora and diplomatic missions abroad.
The government to forge partnership with NRNs in different parts of the world and get their support in promoting Nepal's tourism sector launched the campaign, which was actively promoted in coordination with NTB and NRNA.
It was announced during the third NRNA conference here in October 2007. Internationally launched in London on November 17, 2007, the campaign started on January 1, 2008, after launch of its official website www.sendhomeafriend.com on December 31, 2007.
Pvt sector bid to apply SEME model on hold, for now
Nepali entrepreneurs are waiting for political stability to apply the Social and Ecological Market Economy (SEME) model which is believed to have reduced economic distress in many countries of the world.
"This model can work wonders as it caters to all needs of various sectors of the nation. We just need to resolve political differences to put this model to use.
It can generate a great deal of good for the national economy," said Padma Jyoti, chief of Jyoti Group of industries.
SEME, looks at sustainable development of the economy with the government, civil society, entrepreneurial sectors and trade unions jointly working as a direct force to balance out any differences. The social market economy is a system of countervailing powers through which a dynamic equilibrium is created.
"This model has been used extensively in many countries and has been a huge success. Chile as an example would serve best as now it is one of the quickest developing countries" said Dr Dieter W Benecke, expert on SEME.
According to Dr Benecke, SEME is best suited to countries in a transition period, and most applicable to countries facing a crisis situation. He added that in such a mode government is given as much power as necessary and civil society along with other financial institutions are given equal roles to provide sustainable and inclusive growth.
"When implemented, SEME could bridge the gap among all sectors of the market and create the balance that is needed. We are looking into the scope for lobbying for this process after the constitution formation," added Jyoti.
Many European countries as well as a number of countries elsewhere are adopting SEME model and reaching strong levels in sustainability and solidarity.
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