Margin loans of commercial banks surge 35.57 percent
Commercial banks have reported a healthy growth in margin lending in the first five months of the current fiscal year. According to Nepal Rastra Bank (NRB), margin loans of 20 out of 19 commercial banks increased by 35.57 percent to Rs 86.33bn in mid-Dec 2024, compared to Rs 63.67 in mid-Dec 2023.
Margin loans refers to loans extended by banks by accepting shares listed on the Nepal Stock Exchange (Nepse) as collateral. Among commercial banks in the country, only Standard Chartered Bank Nepal Ltd has not issued margin loans. With liquidity in the banking system rising amid slowdown in credit disbursement and surging deposits, investors say banks are encouraging them to take margin loans.
The Nepal Rastra Bank (NRB) removed the Rs 200m ceiling on margin loans for institutional investors through the Monetary Policy for fiscal year 2024/25. This means that institutional investors can now borrow as much as they want. The policy intervention has led to a surge in margin loan disbursements. Margin loans have been capped at Rs 120m for individuals. In the last fiscal year, lending against share collateral had declined by 18.1 percent.
The total margin loans amounted to Rs 50.4bn in the fiscal year 2019/20. It grew by a whopping 110.84 percent to reach Rs 106.28bn by mid-Aug 2021 as investors poured money into the stock market due to a lack of viable investment avenues during the covid pandemic. Concerned by investment of over Rs 100bn in margin loans, the central bank started tightening such loans. As a result, such loans fell by 24.25 percent to Rs 80.5bn in mid-July 2022 and further to Rs 64bn in the next month.
Data provided by the central bank shows that margin loans of Nepal SBI Bank increased by a whopping 1,890.46 percent in the review period. The bank’s margin loans rose from Rs 23.94m in mid-December last year to Rs 476.58m in mid-December this year.
The bank, however, has the lowest exposure to margin lending. Nabil Bank Ltd has the highest exposure to margin loans among Class ‘A’ banks in the country. Such loans of the bank went up by 2.78 percent to Rs 11.39bn in mid-Dec 2024. The bank had disbursed Rs 11.08 billion in margin loans in mid-December last year.
Global Bank Ltd follows with total margin loans of Rs 11.31bn in mid-December this year—a growth of 77.87 percent from Rs 6.36bn in mid-December last year.
Table
Margin loan disbursement by commercial banks
|
Bank |
First five months of 2024/25 (Rs in m) |
First five months of 2023/24 (Rs in m) |
Change (in percent) |
|
Nabil |
11,395.02 |
11,086.56 |
2.78 |
|
Global IME |
11,339.30 |
6,363.84 |
77.87 |
|
Nepal |
7,910.94 |
4,458.08 |
77.45 |
|
Siddhartha |
7,901.80 |
4,127.66 |
91.44 |
|
Kumari |
6,801.65 |
3,668.38 |
85.41 |
|
Prime |
5,835.26 |
4,250.62 |
37.28 |
|
Citizens |
5,687.63 |
3,924.54 |
44.92 |
|
RBB |
4,201.57 |
4,260.18 |
-1.38 |
|
Prabhu |
4,020.23 |
3,598.43 |
11.72 |
|
Laxmi Sunrise |
3,746.79 |
3,254.19 |
15.14 |
Source: NRB
Preparations on to use Gurung, Magar languages as official languages in Gandaki Province
The Gandaki Province Government has initiated plans to use Gurung and Magar languages as the official languages in the province.
Social Development Minister of Gandaki Province, Bindu Kumar Thapa, shared that processes have been forwarded to use the two languages for official communication in the province.
The Social Development Ministry conducted a program in Damauli on Sunday to collect recommendations for this purpose too.
Minister Thapa said that the province government has prepared a bill to use these two languages as the official languages and the recommendations have been collected from the districts.
The bill is being formulated now and will be tabled in the Winter Session of the Gandaki Province Assembly, according to Minister Thapa.
Minister Thapa argued that the move was aimed at preserving, promoting and developing the two dominant languages of the province, and to ensure prompt service delivery from the public agencies.
The Language Commission of Nepal had also recommended the use of these two languages for official communications in the province.
In the province, Magar and Gurung communities make up 18.8 percent and 11 percent, respectively.
Life Mantra Nepal’s five-day workshop on autism concludes
A workshop on autism conducted by Life Matra Nepal concluded successfully on Sunday.
Volunteers and health workers of the Kathmandu Metropolitan City-6 took part in the five-day event organized at the Urban Health Promotion Center, Ramhiti, Boudha, KMC-6.
The main objective of the workshop was to exchange knowledge and raise awareness about autism.
A report published by Autism Care Nepal Society (ACNS) estimated that 300, 000 children in Nepal are living with autism. Among them, 60,000 to 90,000 are severely affected.
According to the World Health Organization (WHO), autism spectrum disorder (ASD) affects one in 160 children globally, and that boys are diagnosed with ASD more often than girls. However, some studies suggest that the gender disparity may be due to underdiagnosis of girls.
On the occasion, KMC-6 ward Chairman Bhuwan Lama underscored the need to develop a positive attitude towards breaking the deep-rooted stigma that autism is a mental illness. Instead, it is a development disorder.
He expressed his hope that this workshop would play an instrumental role to break the stigma towards autism in the society and encourage every individual and families to come forward and seek support they need.
Chairman Lama further hoped that this workshop would help the social workers go door-to-door to raise awareness about autism.
He also emphasized on expanding this kind of awareness campaign nationwide so as to educate the people about autism.
Life Mantra is an organization that raises mental health awareness through community programs, provides specialized counseling to help individuals overcome challenges and offers tailored training for education, health workers, parents and students.
The organization’s objective is to strive to foster social justice, equality, peace, and prosperity supporting disadvantaged groups like seniors, women, children and disaster survivors.
Life Mantra provides services like
- Individual Counseling (Relationship, Trauma, Depression, Anxiety, Stress)
- Yoga and Meditation
- Hiking for Well-being
- Training and Capacity Building Programs on Mental Health and Well-being
- Awareness Programs
- Parenting Skills Training
- Life Skills Training
- Rejuvenating Retreat
Nepal-Indonesia cultural exchange program held for tourism promotion
A Nepal-Indonesia cultural exchange programme was organized in Kathmandu on Sunday night for the country's tourism promotion.
Singers and performers from Nepal and Indonesia made their cultural performances at the event organized by The Last Frontiers Trekking Company in association with the Nepal Tourism Board (NTB) and AMS Music and Entertainment.
For the event, a 13-member delegation from Indonesia had arrived in Nepal some days ago.
Such events are expected to deepen cultural ties between Nepal and Indonesia as well as contribute to the tourism sector.
The Last Frontiers Trekking Company's Managing Director Mingma Dorjee Sherpa said collaboration between Nepal and Indonesia is likely for tourism development in the future adding that more than 2 million Buddhists could be welcome in Nepal for their visits.
The Indonesian singers sang some pop songs and folk songs from Indonesia and expressed happiness for the opportunity to visit and perform in Nepal.
