Kist Bank Brings Two New Savings Schemes

Kist Bank Ltd has two new products: Kist Narnaari Savings and Kist Enterprising Credit. In the first the interest rate on savings is 10.25 per cent per annum for women and 10 per cent for men. Jointly it will be 10.10 per cent. The second gives credit Rs 2 lakh to 50 million with 9-12 per cent interest. 

Jorba Savings and Loan Cooperative Ltd Opens

Jorba Savings and Loan Cooperative Ltd established its office at Kamaladi on the occasion of Buddha Jayanti. The opening of the company’s office was initiated with an account opening programme by Swami Anand Ramesh of Osho Ashram. Company president Dhruba Raj Sharma said the company will provide house loan, property loan, consumer stores and installment services during the programme.The share capital of this finance company is Rs 25 Lakhs. 

Information Rev- olution Fair 2009 Postponed

The Information Rev- olution Fair 2009 that had been scheduled for May 13 has been postponed due to the prevailing political situation, said organizers Centre for Information Science and Technology (CIST). The fair will now be held from May 28 to June 2 at Funpark, Bhrikuti Mandap. Visitors can gather information learn about the latest developments and innovations in information technology, CIST said. 

Mata Panchakumari Savings and Credit Cooperative's Capital

Mata Panchakumari Savings and Credit Cooperative Ltd during one year of its establishment has made a collection of Rs 25 million, with Rs 50 lakh share capital.

The cooperative celebrated its first anniversary on Sunday, according to a press release issued by the management of the cooperative.

Women Scale The Business Ladder

The business sector in the country may predominantly be male oriented. Nevertheless, women are slowly building up and the equality factor with the help of various entrepreneurial organisations and their own skills in the field of business.

Entrepreneurship for women is seen as a rite of passage from poverty towards equality. Studies have proved that entrepreneurship, in the form of small and medium sized enterprises, can indeed empower women and over time fundamentally transform power relations within a society, making it a place where women can lead. In Nepal, entrenched structural and socio-cultural constraints challenge women entrepreneurs and make it hard for them to realise their potential as leaders in business.

“The main challenge faced by women entrepreneurs here is the lack of training facilities. They are still in the conception stage of being economically independent and have only until recently begun to work outside of home,” said Srijana Rana, Secretary for Federation of Women Entrepreneurs’ Association of Nepal (FWEAN).

Adding that if provided the right opportunity and support by society women in Nepal have as much capacity to grow in the field of business as men, Rana said, “Most women are involved in the small cottage industries, but nowadays they are slowly climbing the corporate ladder in banks and many other male dominant workfields.” The country is enveloped in political turmoil, and it is difficult for the women entrepreneurs in Nepal to progress, said FWEAN president Pramila Acharya Rijal adding, “For anything to gain momentum and grow, the environment needs to be conducive and in Nepal the political environment at the moment is a big challenge for women entrepreneurs’ growth.” Social culture in Nepal also does not allow women to run the family business.

Stereotyped ideas that only men are capable of taking over a family run business still persist. “Neighbouring countries have many women industrialists but in Nepal the social mentality of people prevents women from doing business. Financial assistance for starting a business is more easily provided to men than women.

This is a major drawback for women who want to get into business,” added Rijal.

According to her, the agricultural sector that is mainly women-run is going to be the most successful in the coming years. “The next five years will see women rise to new heights, if the environment is encouraging. Nepali women are driven and w will see a surge in the coming years,” she added.

New Confederation of Nepalese Professionals Team

The fourth assembly of Confederation of Nepalese Professionals (CONEP) elected 46 executive members led by Pramod Raj Sharma. The CONEP general assembly held on May 1-3 was elected Bishwa Nath Pyakurel in senior vice-president and Kedar Sanjel, Dr Hira Maharjan, Hira Nepal, Balkrishna Giri and Prabha Bajracharya in vice-presidents. Likewise, Premal Kumar Khanal was elected general secretary and Bishnu Lamichhane, Shiva Adhikari, Lal Bahadur Pakhrin and Udaya Sharma vice-general secretaries. CONEP has coined the slogan ‘Trade union with political rights’ in the democratic republic of Nepal.

Hathway Investment Company Opened

Hemraj Dhakal, pres- ident of Hathway Investment Company opened the head office of the company at Kantipath. The company will provide consultancy services for marketing, merger and acquisition.

Ambika Prasad Poudyal is MD

14th AGM of the Nepal Banaspati Ghee and Oil Production Company

In the 14^th annual meeting of the Nepal Banaspati Ghee and Oil Production Company held on 25^th of Baisakh, the new working committee was selected for the upcoming two years of time. In the presence of undeviating President, Kamal Kumar Begani, Bikash Dugar was selected as a new president for the working committee. In the new form committee, Manish Kumar Agrawal was selected for the first vice president, Nanda Kishor Mudra for the second vice president, Sandip Kumar Agrawal for the General Secretary and for the treasurer Ratna lal Kedia was appointed.

As per the legal law of the company and as a undeviating president, Kamal Kumar Begani will automatically be there in the new working committee. Similarly, rest of the industry will be the member of the working committee.

According to the release, the whole process of choosing the respected chair holders was done with the required rules and regulation.

Jagadamba Cements New Plant at Parsa

Jagdamba Cement Industries — a Shanker Group company — recently started operations from its new unit, Shuva Shree Jagdamba Cement Mills, Parsa. The new plant is probably one of the most advanced cement manufacturing units in Nepal, claims the company. Jagdamba is one of the largest producers of cement in private sector with a capacity of 15,000 tonnes per day.

Gold Edging Towards Ascending Trend

The gold market this week closed Rs 390 higher on Friday than its opening price of Rs 23,360 per 10 gram on Sunday.

On Monday, gold priced at Rs 23,405 per 10 gram. It increased by Rs 255 to Rs 23,660 on Tuesday but fell by Rs 85 on Wednesday to drop to Rs 23,575.

Gold traded for Rs 23,660 again on Thursday and closed at Rs 23,750 on Friday. According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), gold priced $885 per ounce in the international market last week and closed at $913 per ounce this week. Meanwhile, silver opened at Rs 351.50 per 10 gram on Sunday and traded for the same price on Monday. With an increase of Rs 4.50 silver priced Rs 356 per 10 gram on Tuesday. On Wednesday, silver traded for Rs 358 with another hike of Rs 6 on Thursday.

Silver closed at Rs 366 per 10 gram, registering an increase of Rs 14.50 over the opening price.

Taxpayers Learn The Ropes of VAT e-filing

Inland Revenue Offices (IRO), Area No 1 and 2, Kathmandu and Lazimpat office organised a demonstration programme on e-filing of value added tax (VAT) for taxpayers here today. Taxpayers, auditors and officials of the offices took active part in the programme.

Though the government has started e-filing of VAT since this fiscal year, very few taxpayers are using the facility.

“It is for the benefit of the taxpayers,” said Shanta Bahadur Shrestha, director general of the Inland Revenue Departmant (IRD).

“Taxpayers need not go to the tax office to pay the VAT if they learn the e-filing system.” However, even now very few tax payers are finding it convient to use the e-filing of VAT that saves time, energy and prevents administrative hassles.

The use of e-technology in the tax administration has also reduced the workload of employees and increased their efficiency.

The training was organised under the Taxpayer Education Programme of IRD that has from this week started action against around 6,400 Voluntary Disclosure of Income Sources (VDIS) defaulters. Some of the suspected businesses were raided last week. “We are still investigating,” Shrestha added.

IRD collected a total of Rs 1.51 billion under the scheme from around 3,600 people, though it had compiled a list of 10,000 people.

The government had extended the deadline by a month after the industry captains urged to accede to their request.

In the first phase, the government managed to rake in Rs 1.42 billion. The original deadline had expired on February 11. However, the extension came in handy for the government, if the collections are anything to go by. It collected an additional Rs 467.8 million from 1,600 people within the extended period.

Finance Minister Dr Baburam Bhattarai had announced the scheme during his budget speech on September 19, 2008.

Postal Bank Popular in Nepalgunj

Postal Savings Bank operated in Banke targeting the poor and common people is getting popular. The bank operated by the District Post Office since 2063 BS from the saving accounts of five persons, now has 800 customers. Minimum Rs 100 to maximum Rs 5,00,000 can be deposited in the account. The bank has made transactions of Rs 50.38 million and earned profit of Rs 5.05 million so far. It has provided Rs 10.19 million in loan to post office employees, said office chief Keshar Singh Dhami. The bank makes cash transactions of Rs 7,00,000 to 10,00,000 daily but its transactions cannot be extended due to lack of security guards.

Agents Honoured

Hong Kong-based airline Dragonair — a sister concern of Cathay Pacific Airways LTD — honoured its top performing passenger and cargo agents for their contribution to the success of Dragonair’s business in Nepal in 2008. Regional general manager Tom Wright along with Manager Bangladesh & Nepal Rick Symington, Sales & Marketing Manager India, Nepal & Bangladesh Rakesh Raicar and GSA Chairman Sidhartha Rana presented awards to Osho World Nepal Travel, Deurali Travel & Tours, Sumegh Travels & Tours, Jaya Travels & Tours and Dynamic Services. Top three Cargo Agents (revenue-wise) Legend Cargo, Shangri-la Frieght and Oriental Cargo Service were also awarded. 

Nepal Promo in US

The embassy of Nepal, Washington DC, and America Nepal Society (ANS) jointly organised two programmes on Tourism Promotion on May 2 and 3. These two programmes titled ‘Embassy Open House’ and ‘Cultural Programme’ under the Passport DC programme designed and coordinated by Cultural Tourism DC, a private Washington DC-based organisation. Embassy Open House programmes were organised by 31 Washington DC-based embassies. The programme was organised at the ambassador’s residence. 

Nation’s Oldest Bank NBL Launches First ATM

The first bank of Nepal — Nepal Bank Ltd (NBL) — has at last launched its ATM service from today. It started its ATM services at three places — Lazimpat, Kantipath and the head office. The first ATM was inaugurated by deputy governor of Nepal Rastra Bank (NRB), Bir Bikram Rayamajhi, at the NBL head office in New Road.

“The transformation of Nepal Bank from a token bank to a modern technology ATM bank is an important step in competing with private banks in the country,” Rayamajhi said adding that there is need for new equity injection to develop the bank.

In the second phase, the bank aims to start its ATM services at Narayangarh, Biratnagar and 20 other places across the country. “The bank also aims to computerise all of its branches within a year,” said bank CEO Dr Binod Atreya.

Along with this, branches in Dungre, Suruga will also be opened soon as announced during the programme.

The bank is planning to distribute ATM cards free of cost in the begining and has a target of one lakh cards. The ATM cards can be used in all the SCT network — 1,400 Points of Sale (PoS) and 247 ATMs affiliated to the SCT network in Nepal apart from 1,200 ATMs in India, Dr Atreya added.

Narahari Dhakal, co-ordinator of NBL’s management committee, said on the occasion that to compete with the modern private banks NBL has to focus on cash handling and cash management as well as modern technology. He added that the bank will not be limited to ATM banking but expand its horizon by initiating the service of credit cards very soon.

NT To Start Electronic Billing System

Tired of toting cash and waiting in long queues to pay your phone bill? Here’s cheer for Nepal Telecom (NT) landline users: no need for queues or worry about late fines.

Government telecom service provider NT is developing a Mobile Wallet System. To reduce the paper cash transaction system, grant financial security and to create proper time management, NT will provide electronic bill payment system. It recently launched PSTN bill payment system through various banks.

“Along with postpaid bill paying system through banks, we have started the PSTN bill payment system through banks,” said Lochan Amatya, Director at Information Technology Directorate. According to Amatya, currently the postpaid mobile and PSTN bill payment is being done through some banks here as NT is on its testing period. And as soon as NT is prepared to launch the system, it will make contracts with major number of branch present. The bill payment system is currently available at Laxmi Bank, Machhapuchre Bank, and Bank of Kathmandu while NT is trying to develop contact with Nepal Investment Bank, Nabil and Bank of Asia. The system at the moment is available in Kathmandu Valley, Pokhara, Banepa, Biratnagar, Dharan, Bhairawa, Butwal, Hetauda, Tadi and Bharatpur. “ We are planning to replace the traditional bill payment system at Birgunj with the electronic payment system through banks,” said Amatya.

“We are trying to bring new changes and awareness through IT field and with its success we can introduce Mobile Wallet System here in Nepal, which will definitely reduce the problem of carrying huge cash and proper money management,” Amatya said.

NT till date has a total of 22 per cent of postpaid mobile revenue collection through banks. Its recently launched PSTN bill payment system has made a banking collection of Rs 10 lakh and it is increasing.

NT has a target of more than 50 per cent of its collection through online services.

“ Through this system NT also will benefit as it can utilize its resources in the development of its services,” said Amatya.

NT has 5.16 lakh PSTN users while the total number of GSM postpaid mobile users is around one lakh and the number of prepaid mobile users is 25 lakhs.

In the new system, customers can pay their postpaid mobile and PSTN bills via any bank or its branch offices providing the service of bill payment through personal account, cash or internet. Customers holding personal accounts in the bank can make payment through their accounts. Those not having accounts can make direct cash payments.

Kist Opens As 26th Commercial Bank

Kist Bank Ltd has started operations as the 26th ‘A’ class commercial bank of the country.

Established on February 21, 2003 as Kist Merchant Banking and Finance Company Ltd — a C- class finance company — Kist Bank is the second finance company to upgrade directly to Aclass commercial bank after NMB Bank.

Though Nepal Rastra Bank (NRB) had already permitted Kist Bank to operate as an A-class commercial bank, central bank deputy governor Bir Bikram Rayamajhi today formally inaugurated it as the 26th commercial bank.

On the occasion, bank CEO Kamal Prasad Gyawali said Kist Bank plans to become the best bank in the country by providing innovative and better services.

“The bank will open a total of 50 branches,” informed Rajesh Shakya, chairman of the bank that has 5,000 share holders. It has 24 branches and 22 ATMs currently.

The total number of the branches of all 26 commercial banks has touched 640. There are a total of 26 commercial bank, 58 development banks, 78 finance companies and 12 micro-finance companies, according to NRB data.

The total deposit of all the financial institutions has touched Rs 4.78 trillion.

With the increasing number of financial institutions in the country, the issue of good governance has also come to fore.

“Good governance of the institutions is a must for for sustainable growth,” said Sashin Joshi, president of Nepal Bankers’ Association (NBA) and CEO of NIC Bank.

Securities Board of Nepal (Sebon) chairman Dr Subir Poudel also said, “The companies now have to focus on good governance.”

Sunrise Share Hugely Oversubscribed

Sunrise Bank’s shares might be allotted within 70 days, if the primary calculation of the issue manager NMB Bank is to be believed.

According to NMB’s primary calculation, the primary issue of Sunrise Bank has been oversubscribed by around 30 times to Rs 10 billion.

The larger the amount and application, the longer it will take to be allotted.

However, it would be allotted within 70 days at the latest.

Pravin Raman Parajuli, Head-Merchant Banking Department of NMB Bank Ltd — the issue manager of the Sunrise Bank — estimated that the total amount could be around Rs 10 billion and applications over 3,38185.

The actual amount collected on the fourth and last day yesterday will take a couple of days to be totalled. “Cheques for large amount take at least two days to get cleared from the central bank,” he said adding that the current of roughly around Rs 8 billion — as of today’s calculation — could increase to around Rs 10 billion.

The recently amended Securities Issuance and Registration Regulations has decreased the number of days of application to four. However, the allotment period has been increased. Shares will be allotted within 45 days at the earliest or 70 days at the latest depending on the number of applicants.

The primary issue of 37,50,000-unit shares worth Rs 375 million — the largest among commercial banks — at Rs 100 per unit par value each was floated from Sunday.

The amount and the number of applications on the first three days have been confirmed but the last day’s amount is just an estimate, Parajuli added.

Earlier, the primary issue of Bank of Asia Nepal was oversubscribed by below 19 per cent to Rs 5.40 billion, whereas Citizens’ Bank International’s primary issue was oversubscribed by a little above 20 times to Rs 6 billion.

Due to no other investment opportunity, the investment in financial institutions’ shares has become a newfound opportunity for hopefuls lately.

StanChart Top Brand

Standard Chartered has been ranked fifth amongst UK brands and fifteenth among its financial services peers worldwide in the BrandZ Top 100 Most Valuable Global Brands 2009 survey released by Financial Times.

The new edition of BrandZ was conducted for Financial Times by WPP's Millward Brown and lists Standard Chartered at number 78, moving up 22 places from last year's rankings, while the brand value jumped 20 per cent to $8.2 billion. The Standard Chartered brand performed better relative to its global peers, showing the strength of the brand in upholding business performance during a period of unprecedented market turbulence.

"In a year when Financial Services brand category shrank by 11 per cent, we are delighted that Standard Chartered's brand value has grown 20 per cent,” said Sujit Mundul, CEO, Nepal.

Sale of Sand

Sunsari DDC earned Rs 20 million in the current fiscal year by the sale of sand and gravel extracted from different rivers. It had contracted out the sale of sand, soil and gravel from the river to a contractor for Rs 22 million.It, however, collected Rs 19.8 million from the sale after deducting 10 per cent from the total amount as commission.