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The government on Thursday decided to extend the terms of the two transitional justice commissions.

A Cabinet meeting held this afternoon decided to extend the terms of the Truth and Reconciliation Commission and the Commission on Investigation of Enforced Disappeared Persons by one year (until mid-July next year).

Similarly, the meeting has decided to postpone the decision to implement the national identity card compulsory to receive the social security allowance for the time being.

The government took this decision as the people have been facing difficulties to make national identity cards due to floods and landslides across the country, government spokesperson and Minister for Communications and Information Technology Rekha Sharma said.

The Nepal Stock Exchange (NEPSE) gained 29.21 points to close at 2,204.61 points on Thursday.

Similarly, the sensitive index surged by 5.90 points to close at 391. 66 points.

A total of 20,237,780-unit shares of 331 companies were traded for Rs 7. 08 billion.

Meanwhile, Balephi Hydropower Limited (BHL) was the top gainer today, with its price surging by 9. 99 percent.

Likewise, Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ) was the top loser as its price fell by 4.59 percent.

At the end of the day, total market capitalization stood at Rs 3. 49 trillion.

The CPN-UML has issued a whip to all its members in the House of Representatives to mandatorily attend a Parliament meeting on Friday.

As Prime Minister Pushpa Kamal Dahal is scheduled to seek a  vote of confidence on Friday, the party has directed all its lawmakers to mandatorily attend the meeting and vote against him, Congress Chief Whip Ramesh Lekhak informed.

The CPN (Maoist Center) Chairman Pushpa Kamal Dahal-led government fell into minority after the CPN-UML and the Nepali Congress reached an agreement to form a national consensus government.

The UML has already issued a whip to all its members of the House of Representatives to attend a Parliament meeting scheduled for Friday and vote against Prime Minister Dahal.

Preparations are underway to form a new government under the headship of UML Chairman KP Sharma Oli by removing Dahal from the government.

In the 275-member House of Representatives, 138 seats are required for a majority.

The first and second largest parties of the Parliament Nepali Congress has 88 seats and UML has 79 seats.

The new alliance of the UML-NC has the support of Rastriya Prajatantra Party, Janata Samajbadi Party, Janata Samajbadi Party Nepal, Nagarik Unmukti Party and Democratic Socialist Party.

The CPN (Maoist Center), CPN (Unified Socialist) and Rastraiya Swatantra Party are in favor of the Dahal-led government.

Non-banking assets of banks and financial institutions (BFIs) have increased significantly as their non-performing loan (NPL) levels rise.

A recent report by the Nepal Rastra Bank (NRB) shows that NPL levels of banks and financial institutions currently stand at 3.98 percent. Consequently, non-banking assets of commercial banks have increased by over Rs 15bn in a one-year period. Banks and financial companies (BFIs) have Rs 27.6bn worth of non-banking assets as of mid-May, compared to Rs 15.77bn worth of non-banking assets in mid-May 2023.

A large share of such assets is with commercial banks. According to the NRB, 20 Class ‘A’ banks in the country have Rs 23.74bn worth of non-banking assets, which is about Rs 10bn more than the Rs 13.19bn worth of non-banking assets they held in mid-May 2023.

Similarly, development banks have Rs 2.51bn worth of non-banking assets, up from Rs 1.7bn worth of such assets in mid-May 2023. Likewise, finance companies have Rs 1.34bn worth of non-banking assets. The Class ‘C’ companies had non-banking assets worth Rs 793m in mid-May 2023.

Non-banking assets are properties acquired by banks and financial institutions (BFIs) in settlement of their debts. When a borrower is unable to repay the loan in cash, banks seize properties pledged as collateral against such loans. BFIs are required to dispose of such assets at the earliest to convert these non-cash assets into cash assets for their regular banking business.

The central bank requires BFIs to set aside a provision equal to 100 percent of the asset’s value from the moment they acquire non-banking assets to mitigate risk. This requirement has led to an increase in the banks’ provision amounts.

Bankers are under stress due to the increase in non-banking assets. They have not been able to sell off these properties despite publishing auction notices repeatedly. The slowdown in real estate transactions has further aggravated the situation for them. 

Meanwhile, the existing land ceiling regulations have created problems for banks in acquiring such assets.

NRB preparing to open ‘Bad Bank’

The central bank has begun preparations to open a bad bank for the management of non-banking assets with different BFIs.

Speaking at a program recently, Governor Maha Prasad Adhikari said the central bank was drafting the necessary policies for establishing a bad bank.

A bad bank is an entity set up to buy the bad loans and other illiquid holdings of BFIs. BFIs holding significant non-performing assets can sell these assets to the bad bank at market price, which will give them liquidity to focus on their banking business.

The central bank has concluded that an asset management company should be established through specialized legislation. Stating that a bad bank would become a real estate company if it were to open under existing laws, the central bank has been advocating for the creation of an entity with special capabilities.

The price of gold has increased by Rs 800 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 144, 900 per tola today. It was traded at Rs 144, 100 per tola on Wednesday.

Similarly, tejabi gold is being traded at Rs 144, 200 per tola. It was traded at Rs 143, 400 per tola.

Meanwhile, the price of silver has increased by Rs 15 and is being traded at Rs 1,885 per tola today.

A woman died after a landslide buried a house in Baglung district on Wednesday night.

The deceased has been identified as Khil Kumari Sharma (55) of Titaura, Baglung Municipality-7, according to Meghnath Gaire, Ward Chairman.

Sharma had been living alone. The neighbors informed the people's representatives and police about the disaster this morning.

Landslide obstructs Mid-Hill Highway

Meanwhile, the landslide triggered by incessant rainfall obstructed the Mid-Hill Highway.

The landslide occurred at Bayaldanda of Kathekhola Rural Municipality in the district.

The obstruction has disrupted vehicular movement to and from Purba Rukum, Paschim Rukum and Jajarkot districts, according to Deputy Superintendent of Police in the district, Bijay Yadav.

Similarly, Baglung bazaar has been waterlogged due to heavy rains that occurred since Wednesday evening. 

Inundation in the marketplace has caused a huge loss of property.  

The Prithvi Highway has been obstructed due to a landslide at Mauwakhola of Ichchhakamana Rural Municipality-3 on Thursday.

Nirala Bhandari, police inspector at the Area Police Office, Muglin, informed that an excavator is being used to remove the debris.

However, it would take time because continuous rainfall and mudslide is hampering the work. With the obstruction, the vehicles are stranded on the road.

As the rainy season began during the upgrading of the road, it has caused frequent mudslides, thereby obstructing the traffic on one of the busiest highways in the country.

A total of 55,979 tourists visited the Khumbu region in the last 11 months of the current fiscal year.

The Sagarmatha National Park shared this information.

Information officer at the Park, Manoj Kumar Mandal, said most of the tourists were foreign- 48,402, while the number of domestic tourists was 7,577.

Most of the tourists visited the region in April. April is the tourist season.

Meanwhile, the Park collected Rs 136 million in revenue in the last 11 months. Every Nepali is charged Rs 100, while those from SAARC countries Rs 1,500 each and others Rs 3,000.