बैंकिङ

To manage the “mammoth” excess liquidity in the banking system, Nepal Rastra Bank announced a 63-day deposit collection auction worth Rs 20 billion today. This is the latest in a series of interventions aimed at stabilizing the inter-bank rate, which currently hovers around a low 2.74%.

In the development banking category, Miteri Development Bank reported an “impressive” 120.25% rise in net profit, reaching Rs 5.70 crore this quarter. The growth was primarily driven by a 68% surge in net interest income and a significant reduction in the cost of funds.

The Supreme Court of Nepal issued a directive today scrapping the current 60% ceiling on loans for Electric Vehicles (EVs). The court has ordered the central bank to revise its policy to favor green energy, potentially opening up a new lending corridor for commercial banks currently struggling with excess liquidity.

Nepal’s largest commercial bank by capital, Global IME, reported a resilient 6.5% year-on-year profit growth. While its net interest income fell by 3.33%, the bank offset the loss through a 10% increase in fees and commissions, highlighting a strategic pivot toward digital service charges.

Following the NRB’s push for increased liquidity flow, 11 commercial banks have further reduced their individual fixed deposit interest rates for the month of Magh (mid-Jan to mid-Feb). Himalayan Bank and Machhapuchchhre Bank led with the steepest cuts, lowering rates by 0.5 percentage points to discourage idle hoarding.

In a move to track campaign spending, the central bank issued a circular today requiring all candidates for the March 5 general elections to open a dedicated, separate bank account for all poll-related transactions. Banks have been instructed to provide “fast-track” services for these account openings to ensure compliance with Election Commission rules.

New data from Nepal Rastra Bank (NRB) reveals that the country’s forex reserves have surged to Rs 3.2 trillion, enough to cover over 18 months of imports. Economists describe this as a “recession-like” paradox, where the country is “cash-rich” but lacks the political stability required to convert these buffers into productive investments.

Nepal SBI Bank Limited published its Q2 analysis today, reporting a net profit of Rs 1.03 billion for the first half of the fiscal year. The bank’s performance reflects a stable trend among joint-venture banks, though analysts noted a shift toward non-interest income as core lending remains suppressed.

Speaking at National Anti-Money Laundering Day, Finance Minister Rameshore Prasad Khanal stated that banks must strictly implement the new Rs 500,000 ceiling on corporate cash transactions. He outlined an action plan to remove Nepal from the FATF Gray List by 2027, emphasizing that financial transparency is now a matter of national security.

Consolidated financial statements released today show that Nepal’s 20 commercial banks earned a total net profit of Rs 30.59 billion in the first six months of FY 2082/83. Nabil Bank continues to lead in total earnings, while Kumari Bank saw a staggering 886.5% jump in profit compared to the same period last year due to […]