Gold price increases by Rs 1, 600 per tola on Sunday
The price of gold has increased by Rs 1, 600 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 155, 700 per tola today. It was traded at Rs 154, 100 per tola on Friday.
Similarly, the silver is being traded at Rs 1, 860 per tola today.
Six more BFIs under NRB’s scrutiny
Six development banks and finance companies are under the scrutiny of Nepal Rastra Bank (NRB) after Karnali Development Bank was declared problematic on Dec 25. The central bank took over the management of Karnali Development Bank after it was found that the Class ‘B’ bank had submitted a fake deposit certificate, claiming it had deposits in commercial banks.
Earlier this week, the NRB wrote a letter to different commercial banks, requesting them to furnish details of deposits maintained by these six institutions. An internal investigation by the central bank showed that funds in the Class ‘B’ bank were misappropriated with the involvement of Karnali’s former Executive Chairperson and CEO Rajendra Bir Raya, former CEO Dinesh Kumar Rawat, former Finance Department Head Mahadev aka Bed Prakash Thakuri, and incumbent CEO and Finance Department Head Niraj Bikram Shah.
While the bank’s core banking system showed a balance of Rs 227.46m in Karnali Development Bank’s Cash Reserve Ratio (CRR) account at NRB as of 22 Dec 2024, the investigation committee found the account did not have the said funds. The investigation committee also reported that the bank’s senior management covered up the misappropriation by creating fake balance certificates from other banks.
The central bank wrote letters to different commercial banks, requesting them to send details of deposits maintained by Saptakoshi Development Bank, Excel Development Bank, Narayani Bikas Bank, and Sindhu Bikash Bank as well as Janaki Finance and Pokhara Finance.
While share prices of a majority of Class ‘A’ banks, which have better corporate governance compared to these institutions, are below Rs 300 per unit, shares of these institutions are traded at as high as Rs 1,100 per unit on the bourse.
NRB sources say they have begun analyzing the liquidity situation of four development banks and two finance companies with weak financial conditions and governance issues.
An NRB official said they are taking stock of the liquidity situation in these institutions before taking required action. “Our efforts will be on resolving the issue through the management of the concerned financial institutions themselves,” the official added.
About a decade ago, the central bank formed a dedicated Problematic Institutions Management Department and managed 16 banks and financial institutions.
Gold price increases by Rs 800 per tola on Friday
The price of gold has increased by Rs 800 per tola in the domestic market on Friday.
According to the Federation of Nepal Gold and Silver Dealers' Association, the gold is being traded at Rs 154,100 per tola. It was traded at Rs 153,300 per tola on Thursday.
Similarly, the Federation has fixed the price of silver at Rs 1,845 per tola today.
Nepse plunges by 18. 14 points on Thursday
The Nepal Stock Exchange (NEPSE) plunged by 18. 14 points to close at 2,635.09 points on Thursday.
Similarly, the sensitive index dropped by 2. 97 points to close at 448. 54 points.
A total of 15,723,379-unit shares of 308 companies were traded for Rs 7. 30 billion.
Meanwhile, Barahi Hydropower Public Limited (BHPL) and Himalayan Power Partner Ltd. (HPPL) were the top gainer today with their price surging by 10. 00 percent. Likewise, Saptakoshi Development Bank Ltd (SAPDBL) was the top loser with its price dropped by 9. 23 percent.
At the end of the day, the total market capitalization stood at Rs 4. 37 trillion.
