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The Nepal Stock Exchange (NEPSE) gained 47.07 points to close at 2,144.16 points on Monday.

Similarly, the sensitive index surged by 9.95 points to close at 404. 10 points.

A total of 7,634,190-unit shares of 257 companies were traded for Rs 2. 56 billion.

Meanwhile, BPW Laghubitta Bittiya Sanstha Limited was the top gainer today, with its price surging by 10. 00 percent. Likewise, Kumari Dhanabriddhi Yojana was the top loser as its price fell by 8.37 percent.

At the end of the day, total market capitalization stood at Rs 3. 15 trillion.

One hundred and fifty four local bodies have not yet submitted the particulars of endorsement of their annual budget even after the start of the new fiscal year.

According to the 'Budget Update of Local Levels for Fiscal Year 2080/81' prepared by the Ministry of Federal Affairs and General Administration, 20.45 per cent of the local levels are found 'without budget' as of 2.30 pm today. The number of local levels that have passed their annual budgets until that time is 599.

The Ministry said the highest number of local levels not endorsing their budget until the start of the new fiscal year is in Madhesh Province. Sixty-three local bodies in this province have not brought their budget. The lowest number of such local bodies is in Karnali province. Only four local bodies in Karnali province have not brought their budget.

Twenty-nine local bodies in Koshi province, 24 in Bagmati province, seven in Gandaki province, 14 in Lumbini province and 13 in Sudurpaschim province have not provided information on the passage of their annual budget.

Assistant spokesperson at the Ministry of Federal Affairs and General Administration, Ashwin Kumar Pokharel said a high number of local bodies are seen not bringing their annual budget as even the municipalities that have passed their budget have not entered information about that in the Ministry's centralized system.

"Although many local bodies have passed the budget, they have not entered that in the portal. We estimate not more than 20 local bodies have not presented their budget so far," he said. The Ministry's assistant spokesperson said a circular has been sent to all the local bodies that have not entered the information about their budget in the Ministry's portal.

The Ministry, on Sunday, sent letters to all local bodies and the District Coordination Committee, urging them to update information on the presentation of the annual budget for fiscal year 2080/81 BS and the passage of the same by their respective Town or Rural Municipal Assembly.

Two days after Nepal Bankers Association (NBA) decided to let the banks set their own interest rates, commercial banks on Sunday published their new interest rates for the month of Shrawan (mid-July to mid-August).

With the banking system flushed with excess liquidity, the NBA, an association of commercial banks’ CEO, on Thursday decided to allow the banks set the interest rate themselves, doing away with the long-standing interest rate cartelization practice.

Of the 21 commercial banks, four banks have decided to increase the interest rate on deposits, ten banks to decrease while six banks have kept the deposit interest rate as it is.

Sudesh Khaling, Chief Executive Officer (CEO) of Everest Bank said that banks have fixed the interest rate of deposits based on their requirements. "Banks having more deposits have reduced interest rates while those that need deposits have increased," said Khaling.

Since there is a low demand for loans, the majority of banks have lowered their interest rates. “This is what happens in an open and free market. Diversification in interest rates also gives customers the opportunity to choose the banks,” said Khaling.

The NMB Bank, Nabil Bank, Prime Commercial Bank, and Kumari Bank have increased the interest rate on deposits.  Nabil Bank has increased its maximum interest rate to 10.49 percent for fixed deposits. The bank has offered 5.90 to 7.90 interest rates for saving accounts. 

Among the commercial banks, NMB Bank has offered the highest interest rates on fixed deposits. The bank has introduced fixed interest rates for different periods, ranging from a minimum of nine percent to a maximum of 10.98 percent. The bank’s savings account holders will get interest rates from 5.98 to 7.98 percent.

Prime Commercial Bank has fixed interest rates of up to 10.93 percent for fixed deposits. As for the savings accounts, the bank has offered interest rates of 5.93 to 7.93 percent.

Nepal Investment Mega Bank, Global IME Bank, Lakshmi Sunrise Bank, Nepal SBI Bank, Himalayan Bank, and Citizens Bank have decided to maintain their existing interest rates.  The interest rate on fixed deposits of these banks stands at 9.99 percent.

While some banks have adjusted their interest rates upwards, others have opted to lower them. Rastriya Banijya Bank, Prabhu Bank, Nepal SBI Bank, Machhapuchhre Bank, Everest Bank, Standard Chartered Bank, Siddhartha Bank, Sanima Bank, Nepal Bank, and Agricultural Development Bank have all reduced their interest rates.

Standard Chartered Bank Nepal has the lowest interest rate of 8.95 percent for fixed deposits. The bank has offered 8.95 percent interest on individual fixed deposits and 6.95 percent interest on institutional fixed deposits.

Commercial banks had decided to keep the deposit interest rate unchanged for the month of Ashad (mid-June to mid-July).

Currently, the banking system has deposits amounting to Rs 5,730bn, while loans totaling Rs 4,853bn. Since Baisakh, the banking system has collected Rs 242bn in deposits. In the first three weeks of Ashad (the last month of the fiscal year), Rs 147bn in deposits have been added to the banking system. With the improvement in liquidity, the CD ratio currently stands at 81.75 percent. Banks can provide loans with a CD ratio of up to 90 percent.

After reducing the deposit interest rate in Baisakh (mid-April to mid-May), the NBA, the association of CEOs of commercial banks, decided to keep it unchanged for the month of Jestha (mid-May to mid-June).

In Baisakh, under huge pressure from the private sector, NBA lowered the deposit interest rate to 9.99 percent for individual depositors. Similarly, the interest rate for institutional deposits was lowered to 7.99 percent from 9 percent. 

Domestic airline companies in Nepal have recently announced the implementation of value-added tax (VAT) on their services, starting today.

The Airlines Operators Association of Nepal issued a press note today, informing the public about their decision to incorporate VAT in domestic airfares, aligning with the budget for the upcoming fiscal year 2023-24.

Consequently, the fares for domestic services have increased by up to six percent. As a result of this VAT inclusion, passengers will now experience a slight rise in the costs of domestic air travel.