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Commercial banks in Nepal are experiencing a decline in dividend capacity due to weak credit demand and high non-performing loan levels amid a prolonged economic slowdown. Most banks declaring dividends for the fiscal year 2023/24 have reduced their payouts, with some opting not to distribute dividends at all.

Of the 20 commercial banks in the country, 11 have decided to distribute dividends from their earnings in the previous fiscal year, while five have opted not to distribute dividends. Four are yet to announce their decision on dividend payouts. Among the 11 banks which provided dividends to their shareholders, seven have reduced their rates compared to the previous fiscal year.

Himalayan Bank Ltd, Machhapuchchhre Bank Ltd, NMB Bank Ltd, Rastriya Banijya Bank Ltd and Prabhu Bank have announced they would not distribute dividends from last fiscal year’s profits. Among these, Machhapuchchhre had distributed 14 percent dividend in 2022/23 (13.3 percent bonus shares and 0.7 percent cash for tax purposes). Rastriya Banijya Bank had provided 5.5 percent cash dividend last year. Himalayan, NMB, and Prabhu Bank did not distribute dividends last year either.

Four commercial banks—Kumari Bank Ltd, Nepal Investment Mega Bank Ltd, Nepal Bank Ltd and NIC Asia Bank Ltd—are yet to make their dividends announcements. Despite low credit expansion, commercial banks posted a profit of Rs 64.15bn in 2023/24, a 13.4 percent compared to net profit of Rs 56.57bn in 2022/23. However, most banks could not increase their dividend payouts as they had to set aside substantial funds for provisioning for their non-performing loans.

Commercial banks set aside a combined Rs 201bn for provisioning in 2023/24, compared to Rs 147bn in 2022/23. Himalayan, NMB and Prabhu have not distributed dividends for two successive fiscal years. Himalayan is not in a position to distribute dividend because non-performing loans of its merging partner—Civil Bank—was 27 percent at the time of the merger which necessitated provisioning of substantial funds. The two Class ‘A’ banks started joint operation after merger on Feb 24 last year.

Four banks have increased their dividend payouts compared to the previous fiscal  year. Standard Chartered Bank Nepal has announced a dividend of 25.5 percent (6.5 percent bonus shares and 19 percent cash) from its profits of 2023/24 compared to 19 percent cash dividend a year earlier. Payout of Nepal SBI’s dividend payout has increased slightly from 10.55 percent (3.75 percent bonus shares and 6.8 percent cash) to 10.65 percent (3.8 percent bonus shares and 6.85 percent cash). Prime Commercial Bank Ltd and Agricultural Development Bank (LTD), which didn’t provide dividends from the earnings last year, have announced five percent cash dividend and 10.53 percent dividend (three percent bonus shares and 7.53 percent cash), respectively, this year. However, Everest Bank Ltd, Nabil Bank Ltd, Global IME Ltd, Laxmi Sunrise Ltd, Sanima Bank Ltd, Citizens Bank International Ltd and Siddhartha Bank Ltd have reduced their dividend rates.

The Commission for Investigation of Abuse of Authority (CIAA) has filed cases against the mayor of Nagarjun municipality in Kathmandu district, Mohan Bahadur Basnet, on charges of corruption and money laundering.

He is accused of misusing authority by causing a huge loss to state coffers and amassing individual property in collusion with business groups. He abused power in favor of Padma Colony Private Limited, Padma Merchant Company, and Jagatguru Kripalu Foundation Nepal that heavily dented State coffers.

The charge sheet mentioned that Basnet was involved in illicit dealing to provide land worth Rs 477 million at low price- Rs 232 million- to Padma Colony.

Similarly, Rs 21.5 million was stashed in the bank accounts of Mayor Basnet and his spouse Urmila Basnet.

Proprietor of Padma Colony, Raju Prasad Kandel, provided the hush money for the land worth Rs 68 million, while Rs 2.4 million for a wedding party.

In the lawsuit, the anti-corruption body demanded a recovery of Rs 92 million from Basnet, his spouse, and proprietor, Kandel.

On Sunday itself, CIAA filed the case on money laundering against mayor Basnet, his spouse and proprietor Kandel, demanding recovery worth Rs 132 million.

President Ram Chandra Paudel has wished peace, prosperity and happiness to all Nepali sisters and brothers living in the country and abroad on the occasion of Tamu Lhosar, the festival mainly celebrated by the Gurung community, today.

"I believe the festival like Lhosar fosters mutual harmony, tolerance and fraternity among all Nepalis who have been enjoying multi-ethnic, multi-lingual and multi-cultural society. The festival further strengthens national unity," President Paudel said in the message of best wishes given today.

Tamu Lhosar festival is observed with fanfare as the New Year among the Gurung community of the upper hilly and mountainous regions of Nepal. It is gradually being celebrated by other people of late. The districts with Gurung settlements have special fervor for this festival.

The President hailed the role of the Gurung community in Nepal's socioeconomic progress in addition to preservation and promotion of culture.

He further wished for unity among all Nepalis leading to further progress and prosperity of the country on this occasion.

The Gurung community is marking Tamu Lhosar today by bidding adieu to the year gone by.

In the Gurung language, ‘Lho’ means year or age and ‘Sar’ denotes change. Members of the Gurung community mark the festival by organizing feasts and cultural programs.

Tamu Lhosar is also associated with the rays of the sun, it is said.

The festival is marked on the 15th of the Nepali month of Poush as sun rays reach early in the geography of Gurung settlements including Lamjung, Gorkha, Tanahun, Syangja, Manang, Kaski and Parbat.

The government has announced a public holiday on the occasion of Tamu Lhosar.

Among the maize, yam and peanut farms of Savelugu-Nanton, a remote district of northern Ghana, the legacy of Jimmy Carter is less complicated than it is back in the former US president’s homeland, Aljazeera reported.

Thanks to the work of his charity, The Carter Center, locals are nowadays spared the misery of Guinea worm disease – a parasite that breeds in the human belly and emerges through the skin before laying larvae in stagnant pools to await the next victim.

Carter’s work in fighting the bug and tracking votes in poor countries won him a Nobel Prize for Peace in 2002. It followed a presidency that achieved a landmark Middle East peace deal, but was hamstrung by economic woes and the Iranian hostage crisis.

He died on Sunday, aged 100, the Carter Center announced. He had entered hospice care in February 2023, electing to stay home after a series of short hospital stays. The former president had been diagnosed with cancer in 2015 but had responded well to treatment. At 100, he was the longest-lived president of the United States, according to Aljazeera.

During six decades of politics, aid work and diplomacy, Carter “was committed to ideals like human rights, peace, and improving human life”, Steven Hochman, research director at The Carter Center, told Al Jazeera.

“He didn’t just want talk, he wanted action,” Hochman said. “Whether this was through monitoring elections in Latin America or witnessing the terrible suffering from Guinea worm disease in Asia and Africa, and working to eradicate it.”

It’s difficult for me to even decide, 

Would conversations with you guys be right? 

Are my words hurting all of you? 

Was I ever a part of the crew? 

Isn’t it fair to wonder if I’m not worthy? 

Should I change or remain sturdy? 

Are we really near our ends? 

Don’t I even deserve some friends? 

Is there any way we all could start again? 

Or better be busy with our previous game? 

Were we all in fact at any time friends? 

Or just some random acquaintances? 

Shakshi Ojha

Grade XI

St Xavier’s College, Maitighar

The Nepal Stock Exchange (NEPSE) plunged by 21. 12 points to close at 2,609.58 points on Sunday.

Similarly, the sensitive index dropped by 2. 46 points to close at 448. 99 points.

A total of 11,099,239-unit shares of 316 companies were traded for Rs 5. 47 billion.

Meanwhile, Mahila Lagubitta Bittiya Sanstha Limited (MLBSL) was the top gainer today with its price surging by 10. 00 percent. Likewise, Support Microfinance Bittiya Sanstha Ltd. (SMB), Narayani Development Bank Limited (NABBC), Saptakoshi Development Bank Ltd (SAPDBL),Janaki Finance Company Limited (JFL) and Sindhu Bikash Bank Ltd (SINDU)  sthe top loser as their price fell by10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 4. 32 trillion.

President Ram Chandra Paudel has issued an ordinance related to cooperatives.

On the recommendation of the government, President Paudel issued the 'Ordinance to Amend Some Nepal Acts Related to Cooperatives, 2081'.

"President Paudel has issued an ordinance on the recommendation of the Government of Nepal and the Council of Ministers in accordance with Article 114 of the Constitution of Nepal," said a statement issued by the President's Office.

The government brought the ordinance as the Parliament was currently not in session to solve the problems seen in the cooperative sector.