KATHMANDU: Welcome to Nepal News’ Evening Economic Brief—your go-to source on key financial updates in Nepal. Stay informed with concise insights on market trends, economic indicators, and policy shifts. Here are today’s top economic news highlights:
Stock Market Declines After Three Consecutive Days of Growth: After three consecutive days of gains, the stock market declined on Sunday. The Nepal Stock Exchange (NEPSE) index fell by 16.68 points, closing at 2706. The market opened with a continuous decline. Investors became cautious after the release of the third-quarter financial reports by banks, which showed weak results. While the profits of the banks increased by a modest 1.4%, this growth was not due to an increase in business but rather because of advantages received from the central bank, including reduced loan loss provisions.
Furthermore, banks are still weak in terms of loan recovery and interest collection, leading to an increase in non-performing loans. The banking and financial sector is a dominant force in the stock market. Following the weak financial reports from banks and financial institutions, there are concerns that the performance of companies in other sectors might also suffer, which reflected in the overall decline across sectors today.
Hydropower Stocks Dominate Weekly Share Market Activity: Investor interest in hydropower stocks remains strong in the first week of the new Nepali year. Out of four trading days last week, total share transactions amounted to Rs 33.88 billion. Of this, companies in the hydropower sub-group accounted for about 33% of the total, according to NEPSE.
Other sectors included: Others (15.89%), Investment (13.65%), Life Insurance (7%), Commercial Banks (6%), and Development Banks (7%). Thursday saw the highest single-day transaction of the week with Rs 10.79 billion in share turnover.
India’s Minister for Power and Urban Affairs, Manohar Lal Khattar, to Visit Nepal: Manohar Lal Khattar, India’s Minister for Power, Housing, and Urban Affairs, is set to visit Nepal. Invited by Nepal’s Minister for Energy, Water Resources, and Irrigation, Deepak Khadka, Khattar will arrive in Nepal for a two-day visit on 9th Baisakh. During his visit, Minister Khadka had invited Khattar to Nepal while on his trip to India on 30th Magh 2081.
Khattar, along with Energy Minister Khadka, will inaugurate several infrastructure projects on 9th Baisakh, including the 200kV Inaruwa–Basantapur–Baneshwor–Tumlingtar transmission line, part of the Koshi Corridor 220kV transmission line, and the 220/133/33kV Tumlingtar, Baneshwor, and Basantpur substations. These projects were completed with the support of the Indian government.
NRB to Withdraw Rs 30 billion in Liquidity: Nepal Rastra Bank (NRB) is set to absorb NPR 30 billion in excess liquidity through a deposit collection instrument for a 21-day period starting Sunday. Banks and financial institutions interested in depositing money at NRB must submit online bids by 3 PM.
The bid range is set between NPR 100 million and NPR 500 million, and bidding can be done at multiple interest rates. The maturity date for principal and interest repayment is set for 28 Baisakh. Only banks and financial institutions categorized as ‘A’, ‘B’, and ‘C’ are eligible to participate, and the instrument can be used as collateral for interbank transactions.
Commercial Banks Earn Rs 41.25 billion in Net Profit in 9 Months: All 20 commercial banks have published their third-quarter financial reports for the current fiscal year. According to the disclosed reports, commercial banks earned a total net profit of NPR 41.25 billion from Shrawan to the end of Chaitra.
This is a slight increase from the same period last fiscal year, when banks earned NPR 40.68 billion, marking a growth of only 1.40%. Nabil Bank recorded the highest net profit at NPR 5.05 billion.
Hearing on Writ Against NRB Governor Candidate Bhatta Deferred by SC: The Supreme Court has deferred the hearing of a writ petition filed against Gunakar Bhatta, executive director of Nepal Rastra Bank (NRB) and a candidate for the governor’s post. The case was listed as the 40th item on the bench of Justices Hari Prasad Phuyal and Nityananda Pandey but was not heard due to time constraints.
In addition, a separate petition challenging the amended age limit criteria for the NRB governor was also scheduled for hearing today, but it too was deferred. Earlier, the Supreme Court had issued a short-term interim order barring the implementation of the revised age qualification for the governor. Both parties had been summoned for today’s hearing to deliberate on whether to continue the interim order.
Nepal Sees 93% Surge in FDI Commitments Despite Investment Shortfall: Despite falling short of actual investment targets, Nepal has witnessed a 93% increase in Foreign Direct Investment (FDI) commitments during the first nine months (Shrawan–Chaitra) of the current fiscal year. The growth reflects investor enthusiasm in Nepal’s industrial, tourism, manufacturing, and service sectors.
According to the Department of Industry, investors from various countries proposed investments worth nearly Rs 58 billion across 480 industries during this period. In Chaitra alone, the government approved FDI worth Rs 13.31 billion for 53 projects. In the previous month (Falgun), FDI commitments had reached Rs 17.80 billion.
RBB Issues Rs 2.5 billion Worth of Bonds: Rastriya Banijya Bank has begun issuing bonds worth NPR 2.5 billion starting today. The bank received approval from the Securities Board of Nepal (SEBON) to issue 2.5 million units of bonds, each priced at NPR 1,000. The bonds carry an annual interest rate of 7% for a duration of seven years.
Investors can apply for a minimum of 25 units up to the full issue. The issue manager is Sanima Capital. The bond sale will remain open until at least 10 Baisakh and at most 21 Baisakh. Out of the total issue, 60%—or NPR 1.5 billion worth (1.5 million units)—is allocated for individual investors.
Agricultural Development Bank’s Net Profit Declines: The Agricultural Development Bank’s net profit has declined. As of the end of Chaitra (mid-April) in the current fiscal year, the bank has earned a net profit of Rs 1.84 billion, down from Rs 2.05 billion in the same period last year — a drop of Rs 210 million. The bank’s weak loan disbursement has impacted its net interest income.
In the previous year, it had earned Rs 7.2 billion in profit by Chaitra’s end, whereas this year, it has earned only Rs 6.12 billion — a decline of Rs 1.08 billion. Additionally, the bank’s non-performing loan (NPL) ratio has reached 4.98%, up from 3.30% during the same period last year.
Nepal Bank Posts Nearly 2,000% Surge in Net Profit: Nepal Bank has reported an astonishing surge in profit in the third quarter of the current fiscal year. Last year, the bank had posted only Rs 130 million in net profit as of Chaitra, but this year it has skyrocketed to Rs 2.78 billion — a rise of nearly 2,000%. In fact, during the same period last year, the bank was running at a net loss of Rs 450 million.
The current year’s dramatic turnaround marks a remarkable improvement. While other banks are experiencing declining interest income, Nepal Bank has increased both its interest and operating income. As of Chaitra, it earned Rs 7.10 billion in net interest income and Rs 8.28 billion in net operating income.
Commercial Banks Allocate Rs 35.07 billion for Loan Loss Provisions by End of Chaitra: By the end of Chaitra in the current fiscal year, commercial banks in Nepal have set aside Rs 35.07 billion for loan loss provisioning. This is Rs 4.80 billion less than the amount allocated during the same period in the previous fiscal year 2080/81, when banks had provisioned Rs 39.87 billion.
Among all banks, Kumari Bank allocated the highest amount—Rs 5.16 billion—towards loan loss provisions. In contrast, Everest Bank allocated the least amount, setting aside only Rs 270 million this year, a sharp decline from Rs 630 million last year.
Nepal’s Foreign Trade Grows by 16.89% But Trade Deficit Widens: According to data released by the Department of Customs, both imports and exports increased in the first nine months (until the end of Chaitra) of the current fiscal year 2081/82. However, the country’s trade deficit has also widened compared to the previous year.
Total foreign trade during this period reached NPR 1.497 trillion, up from NPR 1.281 trillion in the same period last year—a growth of 16.89%. Imports stood at NPR 1.309 trillion, while exports totaled NPR 188.19 billion. In comparison, imports and exports during the same period last year were NPR 1.167 trillion and NPR 139.46 billion respectively.
Wean Nepal FPO Allotted to 5,129 Investors: The FPO (Follow-on Public Offering) of Wean Nepal Laghubitta Bittiya Sanstha has been allotted on Sunday. According to issue manager Nepal SBI Merchant Banking, a total of 5,129 applicants received 10 units each through a lottery system.
Out of the total 1,920,939 applicants, 2,523 applications were disqualified. The FPO was open for subscription from Chaitra 21 to 26. The company issued the FPO to maintain 30% public ownership in its capital structure as mandated by Clause 9 of the Bank and Financial Institutions Act, 2073.
Air Passengers in Humla Face Ticket Shortages Due to Limited Flights: In Nepal’s remote Himalayan district of Humla, passengers are struggling to secure air tickets, especially for flights from Simkot to Nepalgunj. The decreasing number of flights has made it increasingly difficult for locals to travel outside the district. Suresh Pariyar, a local, shared his ordeal of trying to fly to Nepalgunj on Friday but being unable to get a ticket.
Despite having a scheduled program in Surkhet on Sunday, he expressed frustration over the unlikelihood of obtaining a seat. He noted that road travel is not an option either, as the Karnali Corridor section in Humla—particularly Bokche Gauda, Bhigauda, and Yangchu Kuna—has been closed due to road upgrade works by the Nepal Army. The lack of regular flights and blocked roads have compounded travel woes for the people of Humla.
Women Represent 50% Participation in Nepal’s Tourism Sector: Women currently account for 50% of participation in Nepal’s tourism sector, according to experts speaking at an event organized by the Nepal Tourism Board on Saturday. The event, titled “Women in Nepali Tourism in the Digital Age,” highlighted the growing role of women in the industry.
Minister for Culture, Tourism, and Civil Aviation Badri Prasad Pandey emphasized that promoting women’s entrepreneurship in tourism would be a key priority. He said empowering rural women with digital literacy could turn tourism into the backbone of Nepal’s economy and called for stronger collaboration between the public and private sectors.
Nepal Imports Nearly 300,000 Metric Tons of Chemical Fertilizer in First Nine Months of FY 2081/82: In the first nine months of the current fiscal year 2081/82, Nepal has imported nearly 300,000 metric tons of chemical fertilizers. According to the Ministry of Agriculture and Livestock Development, 271,169 metric tons of fertilizer were imported between Shrawan (July) and the end of Chait (March).
The target for fertilizer imports for the fiscal year is set at 550,000 metric tons, with 27.95 billion Nepali rupees allocated for the fertilizer budget. Tenders for the import of 550,000 metric tons of fertilizer have already been issued by the ministry. As of the nine-month period, 166,834 metric tons of urea, 89,592 metric tons of DAP (Diammonium Phosphate), and 15,265 metric tons of potash have been imported. During this period, Agricultural Materials Company Limited imported 242,362 metric tons, and Salt Trading Corporation imported 29,330 metric tons of fertilizers.
Nirayaghat Road Upgraded After Decades of Neglect: Nirayaghat was once the only entry point to Baglung about three decades ago. Until 1956 BS (circa 1900 AD), residents of Baglung used to cross the Kali Gandaki River on boats via Khaniyaghat in Parbat district to travel to Pokhara, Kathmandu, and other destinations. At that time, there was no road connectivity to Baglung.
After the Pokhara–Baglung highway was constructed, a motorable bridge was built at Maldhunga in 2051 BS (1994 AD), removing the compulsion to cross the river by boat. As people began using the bridge, Nirayaghat faded into obscurity. To reconnect the neglected area, the then District Development Committee allocated Rs 1.2 million to construct a road from Ganesh Ghumti to Nirayaghat.
International Nepali Chef Society Elects New Leadership: The International Nepali Chef Society has elected a 36-member Central Committee under the leadership of Arun Adhikari in Kathmandu. Shyam Angami has been elected Senior Vice President, while Surya Bhandari, Saikumar Sharma, and Shyam Bhandari are Vice Presidents. Deepak Karki is the General Secretary, Balram Khatiwada the Secretary, Rajkumar Giri the Joint Secretary, Bishnu Khatri the Treasurer, and Hariraj Ghimire the Joint Treasurer.
Other members include Uddhav Shrestha, Phanindra Panth, Laxman Sapkota, Ram Sen, and Varun Singh. Board members include Labh Bahadur Kaushal (LB), Basudev Bhusal, Resham Bahadur Lama, Human Limbu, Kumar Timilsina, Ishwar Panta, Subash Thapa, Saroj Thapa, Shakbir Lama, and others.
Manang Sees Rebound in Foreign Tourist Arrivals: After the dual impact of the COVID-19 pandemic and natural disasters, Manang district has seen a rise in foreign tourist arrivals. According to the Annapurna Conservation Area Project (ACAP), a total of 33,648 foreign tourists visited Manang in the Nepali calendar year 2081 BS (2024/25 AD).
Tourists are drawn to the region for its natural beauty and rich cultural heritage. ACAP chief Dhak Bahadur Bhujel said that tourist arrivals are increasing due to improved road access and stunning landscapes. Of the total, 20,161 were male tourists and 13,487 were female.
Chilime Engineering to Issue IPO; Gets ‘Triple B’ Credit Rating: Chilime Engineering and Services Company (CHESCO), a subsidiary of Chilime Hydropower Limited, is preparing to issue an Initial Public Offering (IPO). The company has received a “Triple B” rating in its IPO evaluation and will issue 297,000 shares at a premium price.
Siddhartha Capital has been appointed as the issue and sales manager. CHESCO has consistently provided 100% dividends to its parent company, Chilime. The company boasts an operating profit margin of 22.5%. CHESCO was established in 2016.
Bara-Parsa Industrialists Demand Customs Overhaul in Upcoming Budget: Industrialists and traders from Bara and Parsa districts have urged the Ministry of Finance to introduce major changes in customs duties, rates, and policy in the upcoming budget to protect domestic industries and address rising revenue deficits due to Nepal’s open border. During a revenue policy interaction in Simara organized by the Revenue Advisory Committee of the Ministry of Finance for fiscal year 2082/83, stakeholders stressed the need to revise customs rates based on a list of goods affecting the national economy.
Madhav Rajpal, Vice President of the Birgunj Chamber of Commerce and Industry, emphasized that Nepal’s 1,700-kilometer open border with India cannot be controlled by police alone. He called for targeted revisions on nearly 100 goods, including ready-made garments, mobile phone series, motor parts, and food products, to balance prices with those in India.
Gold Price Stable, Silver Unchanged in Nepali Market: Gold prices in Nepal remain stable compared to Friday. Today, gold is being traded at Rs 190,800 per tola — the same as the previous trading day — according to the Federation of Nepal Gold and Silver Dealers’ Association. Silver is also steady at Rs 1,960 per tola. In the international market, gold is being traded at around $3,315 per ounce.
