NB Insurance turns 10 years

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.

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."

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.

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.

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.

Hair care studio

Laxmee Hair and Beauty Studio opened its second outlet at Bhatbhateni Super Store, Maharajgunj, on Friday. Film star Neeraj Baral and Nandita KC lent their presence to the opening. The studio provides 15 per cent discount for a month on all services for the event.
Laxmee Hair and Beauty Studio is a state-of-the-art unisex salon.

PrimeLife books profit

PrimeLife Insurance Company ltd bagged net profit of Rs 56.8 million in first year of operation through selling policies equivalent to Rs 433.8 million. It has sold around 1,70,000 policies so far. Insurance in foreign employment has contributed large sum in profit. "As foreign employment is our target we can do more business in coming days," said Resta Jha, chief executive officer on Sunday. The insurance is marketing insurance providing three benefits-saving, life security and tax benefit -to customers.

Etihad airways bucks the trend

Etihad Airways, national airline of the United Arab Emirates, was voted Best Long-Haul Airline at this year's Business Travel Awards. The award recognised the growth of the airline over the past 12 months as well as its continued investment in world-class products and excellence in customer service standards.

The Abu Dhabi-based airline picked up the award at a glittering ceremony at Grosvenor House Hotel in London last night, attended by representatives from across the travel industry.

The judges, comprising senior buyers and leading business travel journalists, recognised Etihad's remarkable growth during 2009, which included the addition of eight new routes to its network as well as the launch of the airline's new first class product and Inspired Service strategy -- a concept built on Etihad's vision to be the best airline in the world.

Peter Baumgartner, Etihad Airways' chief commercial officer, said: "It has been another strong year for Etihad, and the award shows that our continued investment in product and service is the right focus for us and for our customers. " Best Long-Haul Airline award follows World's Leading Airline at World Travel Awards in November, 2009 and Skytrax' Best Business Class and Business Catering accolades in April 2009. In 2008, Etihad got a raft of awards at World Travel Awards; Middle East World Travel Awards; Business Traveller (Middle East) Awards and Pan Arab Web awards.

G'Five's three new mobiles

G'Five mobile has launched new phones with QWERTY keyboard and dual SIM slot (GSM+GSM).
These are G9000, G9000i and E71 models designed for emerging markets. In E71, users can enjoy its heavy battery backup, digital camera, Real Mp3/Mp4/FM and Bluetooth. G9000 supports Java, Email and facebook functions.
Users can enjoy its shake function along with E-buddy (MSN etc.). G9000i is equipped with features of G9000 but users can also enjoy mobile TV with this phone. The MRP of these phones starts from Rs 6000 only. Call Mobility Pvt Ltd, authorized sole distributor of G'Five mobiles, has also announced a 1-year warranty on the handsets and 6-month warranty on battery.

NTY sectt buttonholes envoys

To promote Nepal Tourism Year 2011 within the diplomatic community in Nepal, NTY2011 secretariat and Nepal Tourism Board officials jointly held a programme here to keep diplomats abreast of NTY-2011, its vision, target and objectives.

Envoys Rakesh Sood from India, Andrey Leonivich Trofimov from the Russian Federation, Imtiaz Ahmed from Bangladesh, Ilankonav Kolandavelu from Malaysia, Tatsuo Mizuno from Japan, Eduardo Lechuga Jimenez of the European Commission, head of the Canadian Cooperation OfficeNepal and director of SAARC secretariat lent their presence.

In the briefing session, NTY 2011 program implementation committee coordinator Yogendra Shakya briefed them about tourist arrivals from different countries in 2009 and the target of tourist arrival that NTY-2011 has set for 2011.

January of 2011 is the grand inaugural. Shakya told them that the NTY secretariat would like to invite Ministers from South Asia and Southeast Asia for the inaugural ceremony.

Enervated RBB flexes fiscal musles

Rastriya Banijya Bank (RBB) has profit Rs 2 billion at present. But, negative NPA level has not decreased, and this indicates that despite the improvement phase negative networth Rs 14.68 billion is a challenge for the bank in days ahead.

Speaking at the 45th annual aniversary programme of RBB, Finance Minister Surendra Pandey said, "In the present context, government has been finding different ways for capital injection to minimize the negative networth of the bank."

But, he also said it was not possible to inject capital worth Rs 16 billion at once.
He added that the government injected capital in Nepal Bank Limited at first, and thereafter then only in RBB. "After the impact of capital injection in NBL, RBB is next in the row," he said.
The current deposit mobilization of RBB is worth Rs 6.67 billion, which according to the minister is not so bad.

RBB president Narayan Subedi said that there should no political interference while opening branches of the bank. RBB CEO Janardan Adhikari said the bank is hopeful that its capital plan would be accepted soon so that the bank can convert its negative networth to positive.

According to RBB's internal audit, the Maharajgunj branch stood first on the basis of performance in banking services this year. Minister Pandey handed over Rs 750,000 to the family of a former employee of RBB (Sindhuli branch) Ganesh Bahadur Shrestha, who lost his life during an attack by an unknown gang.

The bank has also provided employment opportunity to Late Shrestha's son.
Altogether 37 employees of RBB were awarded for outstanding work.

Nepal star shines at carpet fair

Nepal participated in the Domotex 2010 international carpet fair in Germany from January 16-19.
Kantipur Crafts, a member of Nepal Carpet Exporters' Association (NCEA) participated during the four-day-long fair that exhibited different varieties of carpet made from wool, silk, Allo, hemp, and Lennon threads, according to an NCEA statement. Minister for Tourism and Civil Aviation Sharat Singh Bhandari with Rohini Thapaliya, the president of Nepal-German Chambers of Commerce, former president B K Shrestha and representatives of NCEA and Surendra Dhakal, executive advisor of Trade and Export Promotion Center (TEPC), participated in the fair held at Hanover, Germany.

The year that was in, uh-oh ... food prices

High food prices remain a significant concern for Nepal. The most recent year-on-year food price inflation figure provided by Nepal Rastra Bank in November was over 16 per cent. The price of rice continued to be at the same or higher level even after the recent crop harvest. Prices in most Tarai markets are higher by 10 to 40 per cent compared to the same time last year.
Poor summer harvests domestically and across much of India are a significant factor keeping prices in Nepal high. However, losses in India are not as bad as initially expected and it is likely that it produced a surplus summer crop. In early January, a joint MoAC and WFP mission will confirm loss estimates in Nepal.

According to a report of World Food Programme in collaboration with Agri-business Promotion and Marketing Development Directorate, Federa tion of Nepalese Chambers of Com merce and Industries (FNCCI) and Consumer's Interest Protection Fo rum, the price of food grain generally remained stable across Nepal this month due to increased supply from the summer harvest. In spite of the re cent harvest, price of rice continued to be at the same or even higher level.
i Price of coarse rice in most Tarai mar kets was higher by 10 to 40 per cent . compared to the same time last year.

National food price inflation re mains a significant concern. Coml pared to 12 months ago, the price of black gram is up by 37 per cent, wheat flour 19 per cent, musuro (broken lentil) 17 per cent and coarse rice 11 per cent. Cooking oils are the only commodity that did not see a signifi cant price rise in the past 12 months.

A seasonal increase in supply of fruit and vegetables significantly re duced prices across much of the country. For instance, Kalamati wholesale fruit and vegetable market experienced a decrease in the price of tomato, onion, carrot and cauliflower by around 25 per cent in the past one month.

Last December, the government lifted pulse export ban which had been in place since the end of July 2009.
Traders can export a maximum of 15,000 tonnes of pulses. Lentils were stable during the export ban.

The price of diesel and kerosene increased by three rupees per litre. Both now cost Rs 58 rupees per litre.

During the period, 90 percent of the markets surveyed across Nepal reported that the supply situation had remained stable or improved during December. This was a result of both improved road access following the reopening of monsoon damaged transportation routes (particularly in the mid and far-western hills and mountains).

Co-ops should be in NRB net: Experts

Experts and economists have urged the government to drag large cooperatives in the net of Nepal Rastra Bank (NRB). They demanded to upgrade them to finance companies so that NRB can regulate them.

Around 16,000 cooperatives are registered. But authorities do not have exact data on how many of them are operating. According to the Department of Cooperatives (DoC), there are 5,136 cooperatives in Kathmandu Valley with 2,013 in Kathmandu district alone.

Economists think cooperatives are more vulnerable than banks and finance companies as the latter fnction under strict supervision of financial authorities.

Nepali cooperatives have deposit Rs 63 billion of basically poor people. Nearly, a half a dozen cooperatives have transaction over Rs 1 billion annually.

DoC is monitoring the finances of cooperatives but it lacks the knowhow to scrutinize their financial status.
Cooperatives are reluctant to submit annual reports to district offices. As per the Division Cooperative Office (DCO) Kathmandu, half of the listed cooperatives are submitting reports on time. "We are tightening financial - regulations of the coopera tives to make them more re- sponsible," said office staffer Maheshwor Sharma Poudel.

Poudel said the growth of - cooperatives has been strong and fast but in no way can they be compared to banks, because cooperatives look not just into investor - benefits but social causes as t well and generate a strong - economic quotient towards . the country's gross domestic product (GDP).
- K B Uprety of Rastriya Sa- hakari Bank Ltd said that a cooperative looks into hunf dred per cent customer ben efit unlike banks which only . give a certain amount of interest from profits. "Cooperatives are big contributors to the economic growth of the country, and with a bit of extra supervision they will grow while helping the country and people to develop financially," he said.

Meanwhile, there has been a spurt in the number of illegal cooperatives.

"We need self-sufficient and regularized working systems. The process of mobilizing deposits by customers themselves is yet to come about, and until that happens the concept of cooperatives won't be feasible," said Rewat Bahadur Karki, former regulator of Nepal Rastra Bank.

My Shop at your service

A PREMIUM service that cleans your clothes and removes stains with technical perfection, dry-cleaning is the best way to keep your expensive and delicate clothing items in good shape. And when it's about dry-cleaning, there are two words that strikes any Nepali's mind -- My Shop.

Emphasising this fact, Neelam Harjani, owner and director of My Shop Drycleaners said, "The word My Shop has become synonymous with drycleaning now. When people think about laundry and drycleaning, My Shop is the first name that comes to their minds."

A LONG WAY "It was my father-in-law Gulab Rai Harjani who established this business in Nepal in the year 1957," said Harjani.

After the Indo-Pak war, Harjani's family shifted to Kolkata and got involved in the jewellery business. Admired for his sincerity and hard work, he also acquired some regular customers amongst royal families. However, when he saw a friend of his operating a dry cleaning shop he got inspired and came to Nepal to venture into this business. And thus My Shop factory wa opened in Dillibazaar in the year 1957.

"At that time many people here didn't know about dry-cleaning and those who did, they used to get their clothes drycleaned in India," said Harjani. "It was our brand that set the concept of drycleaning in Nepal and till today we have kept our stand in the market," she added.
METICULOUS APPROACH METICULOUS APPROACH They have five shops inside the Valley while the factory is at Thimi, Bhaktapur. Stating that people still are not clear about the true concept of drycleaning, she said that rather than just washing with water, it is the process of cleaning garments with petroleum solutions.

"In our factory, every single detail is meticulously checked and the process is worked out according to the type of stain. Group of different teams have been employed for every step of the cleaning pro cedure," added Harjani.

According to her, it's the years of providing quality ser- vice that has given My Shop such a huge recognition here.

Because of this they never felt - the necessity of marketing - their brand. "People already knew our brand. But still we did come out with print ads which helped in elevating our brand's name," said Harjani. COMPLETE SERVICE Their factory is well equipped with all the necessary machineries from the stage of beating the dirt out to the final pressing of the gar ments. "Our first ma chines were brought from Switzerland.

And now along with those, we have brought other ma chineries from Inchineries from In dia as well," said N i s h a n Shrestha, Man ager of My Shop Drycleaners.

The clean ing process begins with the beating off of the dirt and then stains are checked r in each garment.
o- "The washing depends upon the types of stain (oil or water) e and the cleaning with chemical r- treatment has to proceed acp cordingly," said Shrestha. The e. garments are inspected for lt stains at every step.

g "As an extra service to our y customers, we also stitch e and mend loose stitches and s buttons. We want to give r them completely clean and re stored garments and people have always admired our service," said Shrestha.

QUALITY WORK COUNTS They are confident that their service charges are in line with their quality service. "Even foreigners come to us for laun dry services because they know the quality service we provide," said Shrestha.

Small dry-cleaners providing not so good services at lower prices mushrooming in the city have been a major concern for them. "You should be commit ted to quality. If you want to give your newly bought suit for dry-cleaning would you care for the service charge or the quality of washing?" asked l Shrestha.
- As for their future plans, they are set to open a new showroom at New Road.
l "With the growing demand, - we had to expand our service - centres with much more t amenities and that is what we . will be doing in the coming years," said Harjani.

Banks in black

The condition of banks in Nepal is good, said speakers at a programme here on Saturday. At the event organised by Mirmire Media Club, people involved in the banking sector pooh-poohed rumours that financial institutions in the country are becoming `bankrupt'.
Nepal Rastra Bank (NRB) former governor Deependra Bahadur Chhetri said monetary policy had become a failure due to the government and that the country's economic condition was worsening as the budget was not passed on time. NRB executive director Mahaprasad Adhikari sought to allay misgivings that Nepali banks have excessive investment in the real estate sector.

Investment campaign

SB Company Pvt Ltd, a derivative market broker, started investment awareness campaign in Kathmandu on Saturday.

Around 40 potential investors participated in the two-hour camp held to educate people about risks and benefits of commodity trading. "We are also educating people about the prospects of the market," said Damodar Joshi, commodity broker.

SB Company will organize more such campaigns.

Withdraw VAT

Nepal Flour Mills' Association (NFMA) has urged the government to withdraw value added tax (VAT) saying that VAT has made it difficult for entrepreneurs to survive. Issuing a press statement, NFMA on Saturday demanded complete withdrawal of VAT. The government is giving 25 per cent exemption in VAT from this year after reducing the 50 per cent exemption last year. The umbrella organization of flour mills also asked for subsidy to tackle the 34 per cent interest rate hike due to liquidity crunch. NFMA has also demanded that the export tax of 15 per cent on chokar (coarse dust of wheat) be scrapped.