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Nepal Rastra Bank (NRB) has shortlisted six audit forms for Extensive Asset Quality Review (Loan Portfolio Review) of 10 commercial banks of the country. The shortlisted companies include audit firms from Sri Lanka, India, Bangladesh and Nepal. 

According to a notice from the NRB, Deloitte Partners from Sri Lanka, Howladar Yunus & Co from Bangladesh, and KPMG Assurance & Consulting Services and MSKA & Associates from India have been shortlisted for the loan portfolio review of 10 Nepali commercial banks. Proposals from three venture entities have also been shortlisted. They include Subedi & Associates of Nepal, and Mehra Goel & Co and JKSS & Associates of India; and BK Agrawal of Nepal and SR Batliboi & Associates. 

Subedi & Associates is the lead partner in the joint venture of three firms. 

The NRB is selecting an international audit firm for loan quality review as per a condition set by the International Monetary Fund (IMF) while approving the Extended Credit Facility (ECF) for Nepal. Expressing concerns over the quality of loans disbursed by major banks, the potential risks associated with non-performing assets (NPAs) and the overall impact on the country’s financial stability, the IMF had set assessment of loan quality of major Nepali banks as a condition for its support.  

This is the second time that the NRB initiated the process of procuring the service of international audit firms for the loan portfolio review of 10 major banks. In March last year, NRB invited proposals from foreign audit consultancies. Out of five firms shortlisted at that time, only KPMG India was selected for the financial proposal round. But after KPMG submitted a proposal with costs exceeding the estimated budget, NRB canceled the entire process.

The assessment was supposed to begin by April 2024 and be completed by Dec 2024, with a corrective action plan to be implemented from Feb 2025 based on the findings. 

After the IMF expressed concern over the delay, the NRB reissued the call for proposals in December. The central bank has also revised the qualification criteria for the selection process. The minimum score required for qualification of the proposal has been reduced from 70 to 60. The evaluation criteria include 50 percent for qualifications, 40 percent for experience and 10 percent for capability.

Ten commercial banks with highest credit disbursement as of the last fiscal year (mid-July) will have their loan portfolio assessed by the selected audit firm. They include Global IME, Nabil Bank, Nepal Investment Mega Bank, Kumari Bank, NIC Asia Bank, Laxmi Sunrise Bank, Rastriya Banijya Bank, Himalayan Bank, Prabhu Bank Agricultural Development Bank.

These banks had disbursed a total of Rs 2,896bn in loans as of mid-July last year.

The government has given approval to the Finance Ministry to form the Recommendation Committee for the appointment of a new Governor of the Nepal Rastra Bank.

A Cabinet meeting held in Baluwatar on Wednesday evening had given approval to the Finance Ministry to take the process ahead for the appointment of a new Governor.

The tenure of Nepal Rastra Bank Governor Maha Prasad Adhikari is ending on April 7.

The government had appointed Adhikari as the Governor for five years on April 6, 2020.

KP Oli was the Prime Minister and Dr Yuvaraj Khatiwada was the finance minister when Adhikari was appointed as the Governor.

Governor Adhikari is hoping to become Governor again. However, according to a source, the Governor will be from the Nepali Congress.

Currently, there is a coalition government of Nepali Congress and CPN-UML.

The government has decided to promote Dr Bikas Devkota to the Secretary of the Ministry of Health and Population.

A meeting of the Council of Ministers held on March 5 took the decision to promote him to the post.

Spokesperson of the Ministry of Health and Population Dr Prakash Budhathoki said that Dr Devkota will assume the office as the ministry secretary today itself.

It may be noted that Dr Devkota along with two other candidates were recommended for the promotion to the post.

Speaker Devraj Ghimire made a ruling in the House of Representatives (HoR) session today, urging the government to address concerns raised by the opposition parties in the Parliament including in zero and special hours.

He drew serious attention of the relevant minister towards that end as per the Rule 15(2) of the House of Representatives Regulations-2079 BS.

In the lower house meeting today, the opposition parties including the CPN (Maoist Center) demanded the government to inform them about the clarification sought from the Nepal Electricity Authority (NEA) Managing Director. They called for the Speaker's ruling towards that end.

Once the meeting convened, the members from the opposition parties stood from their respective seats and the Speaker granted time to Maoist Center's Chief Whip Hitraj Pandey to put his views.

Airing his views, Pandey said they wanted to be clear about the reports the government has been continuously seeking clarifications from NEA Managing Director Ghising and he was also given zero during the work performance evaluation.

The Nepal Stock Exchange (NEPSE) plunged by 25. 16 points to close at 2, 821. 13 points on Wednesday.

Similarly, the sensitive index dropped by 5. 70 points to close at 469. 56 points.

A total of 23,343,201-unit shares of 308 companies were traded for Rs 10. 97 billion.

Meanwhile, Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ) and Guardian Micro Life Insurance Limited (GMLI) were the top gainers today with their price surging by 10. 00 percent. Likewise, Green Development Bank Ltd. (GRDBL) was the top loser with its price dropped by 6. 84 percent.

At the end of the day, the total market capitalization stood at Rs 4. 68 trillion.

The Ministry of Finance has initiated the formulation of the budget for the fiscal year 2082/83 BS (2025-26).

Today, the Ministry consulted with the Ministry of Physical Infrastructure and Transport, related departments and bodies, on the budget topic.

During the meeting, Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, stressed the need for fiscal discipline and pledged to ensure the budget is realistic. He stated that a realistic budget would help avoid unnecessary transfers of funds and amendments.

He was of the view of learning from the past for the budget formulations. He said that the budget will be made by ensuring coordination among the federal, province and local levels by considering the implementation of a federal setup in the country.

Underlining the need for cooperation and support from all ministers and other bodies in the budget formulation procedures to increase its ownership from all quarters, the Minister vowed to incorporate projects in the budget with a pragmatic approach. He proposed to downsize small projects in the budget.

Minister Paudel also called for careful consideration of budget ceilings when making proposals, urging ministries to plan their budgets in a strategic and organized manner.

The Natural Resources Estimation Committee has recommended a budget ceiling of Rs 196.5 billion for the upcoming fiscal year.

A triumphant President Donald Trump told Congress on Tuesday that "America is back" after he reshaped U.S. foreign policy, ignited a trade war and ousted tens of thousands of government workers in six tumultuous weeks since returning to power, drawing jeers from some Democrats who walked out in protest.

The primetime speech, his first to Congress since taking office on January 20, followed a second day of market turmoil after he imposed sweeping new tariffs against Mexico, Canada and China.

At 100 minutes, the speech was the longest presidential address to Congress in modern U.S. history, according to The American Presidency Project.

World leaders were watching Trump's speech closely, a day after he paused all military aid to Ukraine in a stark reversal of U.S. policy. The suspension followed an Oval Office blowup in which Trump angrily upbraided Ukrainian President Volodymyr Zelenskiy in front of TV cameras.

The pause in aid to Ukraine has threatened Kyiv's efforts to defend against Russia, which launched a full-scale invasion three years ago, and further rattled European leaders worried that Trump is moving the U.S. too far toward Moscow.

rump devoted only a few minutes of his speech to foreign policy. He signaled a willingness to press ahead with a minerals deal with Ukrainethat was set aside after last week's disastrous White House meeting.

"Simultaneously, we've had serious discussions with Russia and have received strong signals that they are ready for peace," Trump said. "Wouldn't that be beautiful?"

And he repeated his promises - though without adding detail - to bring peace to the Middle East and expand the Abraham Accords, deals signed during his first term that established relations between Israel and some of its Arab neighbors.

While Trump has appeared to fault Ukraine for starting the war, a new Reuters/Ipsos poll found 70% of Americans - including two-thirds of Republicans - say Russia was more to blame.

Trump vowed to balance the federal budget, even as he urged lawmakers to enact a sweeping tax cut agenda that analysts say could add more than $5 trillion to the federal government's $36 trillion debt load. Congress needs to raise the nation's debt ceiling later this year or risk a devastating default.

The speech shared some of the hallmarks of Trump's campaign rallies. Trump repeatedly assailed his Democratic predecessor Joe Biden, attacked immigrant criminals as "savages" and promised to ban what he called "transgender ideology," all while peppering his remarks with exaggerated or false claims.

DEMOCRATIC PROTESTS

"To my fellow citizens, America is back," Trump began to a standing ovation from fellow Republicans. "Our country is on the verge of a comeback the likes of which the world has never witnessed, and perhaps will never witness again."

Democrats held up signs with messages like "No King!" and "This Is NOT Normal," and about half the Democrats had walked out by the end of the speech.

One Texas congressman, Al Green, was ordered removed after he refused to sit down.

Trump, a political brawler by nature, reveled in the disagreements.

"I look at the Democrats in front of me, and I realize there is absolutely nothing I can say to make them happy or to make them stand or smile or applaud," he said after Green's ejection.

The speech took place in the House of Representatives, where lawmakers huddled in fear for their lives four years ago while a mob of Trump supporters ransacked the Capitol in an unsuccessful effort to overturn Biden's 2020 victory over the then-incumbent Trump.

The lawmaker Democrats chose to give their rebuttal speech, moderate U.S. Senator Elissa Slotkin, invoked an iconic Republican president in criticizing Trump.

"As a Cold War kid, I'm thankful it was Reagan and not Trump in office in the 1980s. Trump would have lost us the Cold War," Slotkin, a former CIA analyst who won election in Michigan in November even as Trump carried her state, said, referring to President Ronald Reagan. "Donald Trump's actions suggest that, in his heart, he doesn’t believe we are an exceptional nation."

MORE TARIFFS COMING

Trump praised billionaire businessman Elon Musk and his Department of Government Efficiency, which has downsized more than 100,000 federal workers, cut billions of dollars in foreign aid and shuttered entire agencies.

The president credited Musk with identifying "hundreds of billions of dollars of fraud," a claim that far exceeds even what the administration has claimed so far. Musk, seated in the gallery, received ovations from Republicans.

Trump reiterated his intention to impose additional reciprocal tariffs on April 2, a move that would likely roil financial markets even more.

"Other countries have used tariffs against us for decades, and now it's our turn to start using them against those other countries," he said.

On this point, many Republicans remained seated, a signal of how Trump's tariffs have divided his party.

Trump's 25% tariffs on Mexico and Canada, two of the country's closest allies, and an additional 10% on Chinese imports deepened investor concerns about the economy. The Nasdaq Composite is down more than 9% from its record closing high on December 16.

Trump, who has often taken credit for market increases, did not mention this week's downturn. He also barely addressed stubbornly high costs, blaming Biden for the price of eggs and saying he would bring down inflation via increased energy production.

Just one in three Americans approve of Trump's handling of the cost of living, according to the Reuters/Ipsos poll, a potential danger sign amid worries his tariffs could increase inflation.

Trump called on Congress to pass a sweeping $4.5 trillion plan that would extend his 2017 tax cuts, tighten border security and fund massive deportations.

Trump noted that his administration had already launched a border crackdown, citing February's record-low total of 8,300 migrant arrests at the U.S.-Mexico border. Those arrests are often used as a proxy to estimate illegal crossings.

The Republican tax proposal calls for $2 trillion in spending reductions over a decade, with possible cuts to education, healthcare and other social services.

The nonpartisan Committee for a Responsible Federal Budget estimates that Trump's full tax agenda, including elimination of taxes on tips, overtime pay and Social Security benefits, could cost between $5 trillion and $11.2 trillion over a decade. Reuters

Rahul Barua is the Secretary General of the South Asia Foundation. He holds a B.Tech in Chemical Engineering from the Institute of Technology, Banaras Hindu University (now IIT-BHU), and currently serves as a Visiting Faculty at Malaviya Peace Research Centre, Banaras Hindu University. In 1997, he established the first-ever crafts development center in Sikkim, introducing microcredit and self-help groups in the region. 

He also developed a potter’s village on the outskirts of New Delhi, named Kumhargram. Additionally, he founded the South Asia Centre for Peace Research and Sustainable Development in collaboration with Lumbini Buddhist University. Baruwa has played a significant role in peace-building efforts in Nepal, facilitating meetings between Nepali and Indian political parties.  He worked alongside prominent figures such as Sitaram Yechury and Dr DP Tripathi as well as Nepali leaders like Pradeep Giri, Girija Prasad Koirala, Krishna Prasad Mahara, Pushpa Kamal Dahal and Madhav Kumar Nepal, among others. ApEx talked to him on wide-range of issues related to Nepal-India relations. Excerpts: 

What is the South Asia Foundation? Please tell us about its activities.

The South Asia Foundation is a Nepal-registered organization. In collaboration with the Lumbini Buddhist University, we established the South Asia Centre for Peace Research and Sustainable Development. A few years ago, around 5,000 people visited the Maya Devi Temple — a sacred site for followers of Buddha’s teachings — daily. Today, the number has risen to 7,000, with an additional 15,000 visiting Lumbini. Gautam Buddha is not just a figure for Nepal or India, he is a South Asian face for global peace and humanity. His teachings — tolerance, peaceful co-existence, compassion and moving away from materialism — are more relevant than ever in today’s conflict-ridden world. 

This center was conceptualized years ago, and it is very encouraging that Lumbini Buddhist University has provided it with land and necessary infrastructure.  The center not only disseminates knowledge about Buddha but also offers academic diploma courses designed in collaboration with the university. Many top universities of India and South Asian, along with experts, academicians and retired government officials are eager to engage with the center to share their knowledge and expertise with students.

We aim to facilitate Memorandum of Understanding (MoUs) with Lumbini Buddhist University and other universities all over the world. We are in negotiations with the best universities of the South Asian countries. Best minds have come forward and we are collaborating in multiple forms. Several MoUs have already been signed.

What are the other areas that the Foundation and the Center are working on?

We are working on several bilateral issues such as water sharing and border management among others. In 2017, former Indian Ambassador to Nepal, Manjeev Singh Puri, highlighted how Nepali living in India are contributing significantly to the Indian economy. Gone are the days when Nepalis were limited to roles like security guards or menial jobs. Today, they are entrepreneurs running restaurants, manpower agencies and online service providers. 

One area of focus is Nepal’s potential to supply dairy products, especially ghee, to South Asia. Milk production is falling in Bangladesh, Bhutan, Sri Lanka, as well as in the Nepal-India border regions. Nepal can fill this gap by supplying dairy products not only to India but also to other South Asian countries. There should be duty-free agreement on these items between Nepal and India. The Foundation operates without foreign funding, relying entirely on internal resources.  We are training Nepali women to become entrepreneurs and have partnered with India’s dairy giant Amul to make the dairy sector organized. There are many areas where we can work together.

Can you please tell us about the light and sound program being launched in Lumbini?

We have signed a MoU for this project and are raising funds locally. Several banks have agreed to support us, though they have their own terms and conditions as per the law and banking regulations. This light and sound program is the first of this kind in Nepal and one of the few in the world dedicated to narrating the story of Lord Buddha. Our goal is to spread the message of peace, compassion and Buddha’s teachings which are relevant even today. We are doing a lot of work on DPR and research from our own funds.  We are receiving technical assistance from a British company. The idea for this light and sound program was proposed to me by Sujeet Shakya of Kathmandu Guest House.

Last week, you organized an important seminar in New Delhi. What were the key outcomes?

The seminar was organized to facilitate knowledge-sharing between Lumbini Buddhist University and other universities in India.  Renowned professors, academics and historians participated in the seminar and shared their insights. They also pledged to support our initiatives. 

Five universities and two institutions have agreed to collaborate with the Lumbini Buddhist University and the Center on joint research, student and faculty exchange programs, seminars, conferences and academic partnerships. We also held sideline meetings with Nepali political leaders and other stakeholders. 

Many more universities have expressed interest in supporting Lumbini Buddhist University. During the seminar, Nepali delegates also engaged with Indian leaders and diplomats, discussing Nepal’s ongoing development and its emergence as a dynamic nation. Over the past two decades, not only has India undergone rapid changes, but Nepal has also transformed significantly.  These changes need to be acknowledged, understood and embraced.

How do you assess the current state of Nepal-India relations?

Nepal and India are both sovereign countries and must mutually respect each other. Both sides share the responsibility to strengthen this relationship. The two countries are equals, each holding their own vote in the United Nations and other multilateral organizations. There is no thing as a ‘big’ or ‘small’ country. Mutual respect is essential to foster a healthy relationship. India’s prosperity should benefit Nepal as well, and vice versa.

What are your suggestions for future prospects?

There has been significant progress in energy cooperation, which is a positive step. However, we should expand student exchange programs on a large-scale, moving beyond limited scholarship schemes. Other potential areas of collaboration include agriculture and dairy productions. India should encourage joint projects in Nepal to further deepen bilateral ties.

How do you view the growing Chinese influence in Kathmandu?

I do not consider Chinese influence as a dominant factor in Nepal-India relations. China has its own aspirations of becoming a geopolitical leader, but what often gets overlooked is the unique and special relationship between Nepal and India rooted in shared social, historical and cultural ties and linguistic similarities.