KATHMANDU: Stay updated with Nepal News’ Evening Economic Briefing, your daily snapshot of Nepal’s financial landscape. This update provides key insights into market trends, economic indicators, and major financial developments, keeping you informed in a rapidly evolving economy. Whether tracking stock movements, foreign exchange reserves, or policy shifts, this briefing distills crucial data into a concise, digestible format. Designed for accuracy and relevance, it’s your essential guide to navigating Nepal’s economic pulse. Here are today’s top updates:
Governor Recommendation Committee Finalized: The Governor Recommendation Committee for Nepal Rastra Bank has been finalized, moving the new governor appointment process forward. Finance Minister Bishnu Prasad Paudel leads the committee, with Bijayanath Bhattarai and Dr. Bishwo Paudel as members. The committee will recommend three candidates for the position. Current Governor Maha Prasad Adhikari’s term ends on April 5, and he is set to go on leave soon.
Banks Announce Interest Rates for Chaitra: Commercial banks have published interest rates for Chaitra, with most continuing Fagun’s rates. Himalayan and Citizens Bank have reduced rates, setting 5.5% and 5.65% for personal fixed deposits, respectively. Kumari Bank increased rates to 6.01% (personal) and 5.01% (institutional). NMB and NIC Asia retained 6.6% (personal) and 5.6% (institutional). Global IME, Machhapuchchhre, Siddhartha, Everest, and RBB set 6% for personal deposits, while institutional rates vary. Agricultural Development Bank, Nepal SBI, and Nepal Bank maintained previous rates.
Nepal’s Credit Card Boom: Borrowing Surges Beyond NPR 6 Billion: The use of credit cards, which allow payments even without funds in the account, is gaining popularity in Nepal. According to Nepal Rastra Bank, Nepalese consumers took over NPR 6.12 billion in loans via credit cards in the first seven months of the current fiscal year, up from NPR 5.35 billion in the same period last year. In just January, cardholders made 251,000 transactions worth NPR 1.85 billion. With banks offering these cards under specific conditions, users can spend now and repay later with interest. The convenience of cashless transactions has driven the growing adoption of credit cards in Nepal.
Tourism Sector Loans Surge to Over NPR 216 Billion: By Magh of the current fiscal year, commercial banks have disbursed over NPR 216.74 billion in loans to the tourism sector, reflecting a 12.09% increase from last year. Nepal Investment Mega Bank leads with NPR 22.98 billion, followed by Prabhu Bank (NPR 21.57 billion) and Global IME Bank (NPR 19.11 billion). Other major lenders include Prime Commercial, Kumari, and Rastriya Banijya Bank. While most banks increased lending, Nabil and Standard Chartered saw slight declines.
Weather Disrupts Flights at Kathmandu Airport: Bad weather has disrupted flights at Tribhuvan International Airport, causing missed approaches and holding patterns. An Air Arabia flight aborted landing due to wind shear, while Air India and Thai Lion Air flights circled before landing. Poor visibility and erratic winds, linked to active pre-monsoon conditions, have affected flights for a week. More afternoon thunderstorms and rain are forecasted in Koshi, Bagmati, and Gandaki provinces.
Preparations Underway for Mt Everest Climbing Season: With the arrival of spring, preparations for Mt Everest expeditions are in full swing. A team of 10 “icefall doctors” has headed to Base Camp to secure climbing routes through the treacherous Khumbu Icefall, according to the Sagarmatha Pollution Control Committee (SPCC). Special Buddhist rituals have been performed to ensure a safe season. Authorities expect a higher number of climbers this year, boosting Nepal’s mountaineering tourism.
Nepal’s Telecom Sector Faces Crisis as 5G Rollout Requires $500 Million Investment: Nepal’s telecom sector is on the brink of crisis, with an estimated $500 million investment needed to launch 5G services, according to Ncell CEO Jabbor Kayumov. Both Ncell and Nepal Telecom face financial strain, with limited revenue and regulatory challenges delaying adoption. While the telecom authority has pledged swift approval, infrastructure-sharing policies remain unresolved, making 5G implementation uncertain despite growing demand for high-speed internet.
India Urges Nepal to Regulate Chinese Garlic Trade: India has requested Nepal to regulate the inflow of Chinese garlic, which has been entering the Indian market despite import restrictions. Nepal’s garlic imports surged to NPR 6.26 billion in seven months, far exceeding domestic demand, raising concerns over re-exports. While Indian authorities have expressed concern, Nepalese officials maintain that completely restricting imports is impractical, emphasizing stricter monitoring and border regulation as potential solutions.
Bardiya Farmers Begin Chaite Paddy Plantation: Farmers in Bardiya’s Rajapur and Geruwa have started Chaite paddy plantation, which begins in late February and is harvested by June. This year, cultivation has dropped to 750 hectares from 1,175 hectares last year. Chaite paddy is mainly used for beaten rice (Chiura). Irrigation challenges and sugar mills reducing farmland have affected production. After harvesting, farmers will begin planting monsoon paddy across 50,000+ hectares in the district.
Which Companies Dominate NEPSE? These Are the 10 Largest Companies in NEPSE by Market Capitalization
Nepal’s stock market is dominated by a few major players across various sectors. The top 10 companies in the Nepal Stock Exchange (NEPSE) by market capitalization include leading banks, insurance firms, a telecom provider, and a trading company. Here are the list of the top 10 largest companies in NEPSE by market capitalization:
1. Bishal Bazar Company (BBC) – NPR 213.17 billion
2. Nepal Reinsurance Company (NRIC) – NPR 175.53 billion
3. Nepal Doorsanchar Company (NTC) – NPR 164.70 billion
4. Nabil Bank (NABIL) – NPR 132.84 billion
5. Citizen Investment Trust (CIT) – NPR 129.50 billion
6. Himalayan Reinsurance (HRL) – NPR 107.33 billion
7. Global IME Bank (GBIME) – NPR 85.98 billion
8. Everest Bank (EBL) – NPR 80.12 billion
9. Nepal Investment Mega Bank (NIMB) – NPR 75.08 billion
10. Nepal Life Insurance Co. Ltd. (NLIC) – NPR 70.96 billion
NEPSE Closed Today for Fagu Purnima Holiday: The Government of Nepal has declared a public holiday today, Falgun 29, for Fagu Purnima (Holi). As a result, the Nepal Stock Exchange (NEPSE) remains closed, with trading set to resume on Sunday, Chaitra 3, 2081, at 11:00 a.m.
Asian Markets Slide Amid Tariff Concerns: Most Asian stock markets closed lower on Thursday despite a strong start. Analysts attribute the decline to growing concerns over U.S. tariff policies under former President Donald Trump. Japan’s Nikkei 225 fell 0.079% to 36,790 points. Taiwan’s stock market dropped 1.1%, while South Korea’s KOSPI and Australia’s market slipped 0.4% and 0.5%, respectively. Hong Kong’s Hang Seng Index declined 1.4%, and China’s CSI 300 also fell by 1.4%. Investors remain cautious as global trade tensions impact regional market performance.
