Net profit of Commercial Bank (Asar End)

S.N	Banks    (Rs. 000)	Ashad 073
1	Nepal Bank	3,018,782
2	Nabil	2,821,564
3	Rastriya Banijya	2,648,471
4	Agricultural Development	2,577,230
5	NepalInvestment	2,550,883
6	Himalayan	1,915,628
7	Everest	1,730,241
8	Global IME	1,386,686
9	Nepal SBI	1,331,881
10	Standard Chartered	1,265,498
11	Siddhartha	1,244,891
12	Prabhu	1,225,049
13	NepalBangladesh	1,198,298
14	NMB	1,150,314
15	Prime	1,128,237
16	Citizens	1,089,914
17	NIC	1,070,090
18	Sanima	1,045,536
19	Sunrise	951,755
20	Machapuchre	891,808
21	BoK	758,104
22	Kumari	740,112
23	Nepal Credit & Commerce	703,088
24	Laxmi	673,765
25	Mega	552,037
26	Century	382,625
27	Janata	325,351

Insurance Paid-up capital increase by 16 times (Proposed Draft)

The proposed draft of the Insurance Companies Act, paid-up capital has been increased upto 16 times. According to proposed draft, Re-Insurance and life insurance companies' paid up capital must have at least fifty billion (5 Arab) and non-life insurance company must have at least fourty billion (4 Arab) rupees. Recently a minimum of 5 billion (50 Crore) for life insurance companies and for non-life insurance company's paid-up capital minimum of 2.5 billion (25 Crore) is assigned. Some companies still have not been able to reach 2.5 (25 Crore) billion within range.

Highest Profit earned 16 Commericial Banks among 24 Commercial Bank

(According to published report upto August 15)

List       

NAME OF BANK	PROFIT (in 000') (F.Y 2071/72)	PROFIT (in 000') (F.Y 2072/73)
Nepal Bank Limited	526123	3018782
Nabil Bank Limited	2098602	2821566
Investment Bank Limited	1961852	2550883
Himalayan Bank Limited	1095595	1915628
Everest Bank Limited	1570000	1730000
Global IME Bank	960608	1386686
Nepal SBI Bank	1065468	1331995
Standard Chartered Bank	1290000	1260000
Siddhartha Bank Limited	767081	124891
Pravu Bank Limited	1035966	122509
NB Bank Limited	813976	1198298
NMB Bank Limited	502803	1150314
Prime Bank Limited	745500	1128200
Citizen Bank Limited	720309	1089914
NICA Bank Limited	680316	1070090
Sanima Bank Limited	670416	1045550
Sunrise Bank Limited	470856	951755
Machhapuchhre Bank Limited	61336	891808
Kumari Bank Limited	394788	740112
NCC Bank limited	412671	703088
Laxmi Bank Limited	416418	673765
Mega Bank Limited	345612	552037
Century Bank Limited	257908	382625
Janata Bank Limited	150350	325351

A Brief notes about  NLIC & LICN

NLIC

NLIC established in 2001-05-04

Piad Up Capital: 216 Crore

Life Fund: 28 Arab Plus

Promotor : Public Share ratio: 80:20

LICN

Established in 2001-09-01

Paid Up Capital: 106 Crore

Life Fund: 26 Arab Plus

Promoter:Public Share ratio : 80: 20

As per 4rth Quarter report 2072-73 of LICN

2072-73 Net Profit : 49.35 Million

Reserve Fund: 18.3 Crore

Per Share Networth: 1170.25

Total Asset Per share:2728.19

NEPSE TREND

During this week, there was upward and downward movement seen in Nepse. In August 09, benchmark index at Nepal Stock Exchange Limited (NEPSE) went up by 84.51 points while closed at 1760.42 points. Similarly, in 10th August NEPSE went up by 16.64 points. Today's trend in the morning, NEPSE went up but ultimately at the closing time, NEPSE went down and closed at 1774.87 points.

Data-wise,  Change in NEPSE is as follows.

Date:              Nepse Index:      Absolute Change:    % Change:

2016-08-09        1760.42              +84.51                +5.0426%

2016-08-10        1777.06              +16.64                +0.9452%

2016-08-11        1774.84              -4.70                   -0.26%

Mutual Fund and their Short Critical Analysis

Mutual Fund that belongs to all the investors aimed to provide appreciation over the medium to long term. In the context of Nepal, the history of MF started with the floatation of NCM Mutual Fund, 2050 an open-ended fund with an amount of 100 million and managed by NIDC Capital Markets Ltd.

Currently, there are different mutual funds schemes in the market such as Siddhartha Investment Growth Scheme – I (SIGS-I) and Nabil Balanced Scheme – I (NBS-I) etc. These funds invest in stocks, bonds and money market instruments. The problem in the Nepalese contest is; investors can hardly get neutral advices regarding the funds from the sponsor banks though a lot of mutual fund schemes are currently in action.

Indian Mutual Funds have been started since 1962. Assessing the Indian MF industry, diversification, investor literacy, penetration to rural areas and smaller towns, conflict of interest, ambiguity of law, lengthy procedures and lack of customer focus on products were seen as past and prevalent problems. Although different segments of the industry were working on resolution, the problems did form the bottleneck in the rapid growth of the industry. 

In Nepal, similar problems, apart from the existing ones are expected over the next decade. Liquidity, volatility, transparency, investor literacy and system related problems will take time and immense effort to be resolved. Apart from these problems, the concentration of Nepalise stock market in banking, financial institutions and insurance company stocks make it harder for mutual funds to generate a finely diversified fund. Resolving these issues would ensure bright future of mutual fund industry in Nepal, at least for the next decade until Exchange Traded Funds (ETFs) replace them.

August 08, 2016 is one of the memorable day we observed the first ever negative circuit breaker after the earthquake that closed the market for a day. Moreover negative circuit downward from past week and today was the worst.

If we look for past few days data, change in Nepse is listed below.

Date:            Nepse Index: Absolute Change:      % Change

2016-07-28    1877.93         -03.52                     -0.18709%

2016-07-31    1862.76         -15.17                    -0.80780%

2016-08-01    1845.41         -17.35                    -0.93141%

2016-08-02    1826.47         -18.94                    -1.0263%

2016-08-03    1813.72         -12.75                    -0.69806%

2016-08-04    1768.60         -45.12                    -2.4877%

2016-08-07    1764.72         -03.88                    -0.21939%

2016-08-08    1775.91         -88.81                    -0.5.0325%

Above data shows, that correction is not enough. There are lots of scripts that need to be corrected. So it’s the time to think and act promptly. For long run, it’s the best time for purchase but those scripts which is strong for short run, it is the time to reallocate.