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The Nepal Stock Exchange (NEPSE) plunged by 29. 81 points to close at 1,960.78 points on Sunday.

Similarly, the sensitive index dropped by 5. 09 points to close at 376. 62 points.

A total of 4,053,368-unit shares of 276 companies were traded for Rs 1. 18 billion.

Meanwhile, Three Star Hydropower Limited was the top gainer today with its price surging by 10. 00 percent. Likewise, Liberty Energy Company Limited and City Hotel Limited were the top losers as their price fell by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 2. 93 trillion.

In a landmark achievement, Sushil Pokharel, founder of Bizbell Private Limited, has earned the place in the International Hydropower Association (IHA) for the 2023-25 term.

This historic moment marks the first time a Nepali national has been elected in the world's apex hydropower body. Sushil Pokharel, known for his visionary leadership and unwavering commitment to clean energy, will represent 28 countries in South and Central Asia. His election to the IHA Board is a testament to his dedication to advancing sustainable hydropower on a global scale.

IHA is a non-profit membership association and serves as the global voice for sustainable hydropower, striving to shape the future of clean energy.

He will officially begin his role on the Board at the 2023 World Hydropower Congress in Bali, Indonesia. The selection process involved candidates from six geographical regions, resulting in the election of a diverse group of hydropower experts with extensive experience.

Eddie Rich, CEO of IHA said, “Global climate change - the greatest challenge in the world right now - will not be tackled without sustainable hydropower. Over the next decade, Central Asia and South Asia will perhaps be the fastest growing region in the world for hydropower. I am delighted that Sushil Pokharel has been elected to represent the region on IHA's highest governing body. I see his election as a breakthrough moment for the region.

Sushil Pokharel, Founder of Bizbell said, "It’s now crucial that we harness untapped resources of this region and make a substantial contribution to global hydropower generation, ultimately helping us to reach the Net Zero Goal by 2050."

As the Founder of Bizbell, Pokhrel has been at the forefront of pioneering sustainable hydropower development, building a significant 1000 MW renewable energy portfolio by 2035.  Globally acknowledged for his commitment to minimizing carbon footprints and revolutionizing the energy landscape, Sushil drives a sustainable future through Bizbell, leaving a lasting impact on Nepal and Central and South Asia region.

The price of gold has increased by Rs 100 per tola in the domestic market on Sunday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 112, 600 per tola today. It was traded at Rs 112, 500 per tola on Friday.

Meanwhile, tejabi gold is being traded at Rs 112, 050 per tola. It was traded at Rs 111, 950 per tola.

Similarly, the silver is being traded at Rs 1,460 per tola today.

The liquidity crisis in the banking sector, the slowdown in the realty sector, and the central bank tightening of the realty loan have suppressed the banks and financial institutions (BFIs) loan disbursement growth to the realty sector in the last fiscal year. The real estate industry sought fewer loans from the banking sector in the last fiscal year as they grappled with multiple issues.

The recent data of the Nepal Rastra Bank (NRB) shows growth in overall realty lending of BFIs stood at 5.56 percent in FY 2022/23 compared to 17.46 percent growth in FY 2021/22. BFIs' loans to the realty sector grew by Rs 31.50 billion in FY 2022/23 whereas such lending in FY 2021/22 increased by Rs 84.17 billion.

According to NRB, the residential personal home loan grew by 3.1 percent in the last fiscal year. BFIs give loans up to Rs 15 million under the residential personal home loan. Such loans from the BFIs increased by Rs 10.32 billion in FY 2022/23, according to the NRB. The personal home loan segment had grown by 13.3 percent in FY 2021/22 as BFIs extended Rs 39.53 billion under this category.

The real estate loan, according to NRB, surged by 9 percent in the last fiscal year. The BFIs lending under this category increased by Rs 21.18 billion in FY 2022/23. Such lending in FY 2021/22 had grown by 24.3 percent or by Rs 44.63 billion. Under the real estate loan category, lending has increased for loans to commercial complexes, apartment construction, and land plotting.

According to bankers, the real estate market hit a low in the last fiscal year due to the economic downturn, and restrictive measures of the government and the central bank. The government restriction on land plotting due to the delay over the classification of lands also hit the realty market hard. And, this was also reflected in BFIs' lending to the realty sector, they said.

During the Covid-19 pandemic, the abundance of cheap money in the financial system fueled asset class investment boom causing massive growth in sectors such as real estate and the stock market. In addition, businesspersons invested the money they received as working capital loans from banks in real estate.

As soon as the liquidity crunch hit the banking sector, the flow of cheap money stopped and the market eventually went into a deep recession. On the other hand, the central bank also tightened lending of banks and financial institutions (BFIs) to the real estate sector, reducing the loan-to-value (LTV) ratio in the Kathmandu Valley to 30 percent and 40 percent outside the valley in the monetary policy for the Fiscal Year 2022/2023.

As banks and financial institutions struggled with liquidity management in the first eight months of the last fiscal year, the growth in BFIs' lending to the realty sector also slowed down, bankers said. "There was lesser demand for realty loans in the last fiscal due to higher interest rates and liquidity crisis in the banking sector," said Nischal Nath Pandey, CEO of Sanima Bank.

With the government lifting restrictions on land plotting recently, bankers expect demand for realty loans will rise in the current fiscal. "Since the second week of August, there have been more inquiries about such loans, which indicates realty loans could surge in coming months," said Pandey. 
 

BFIs' Disbursement of Realty Loan (Residential & Real Estate)