See the news below............. of September 2013

NBB urges NRB to revise its balance sheet ShareSansar, Sept 9:

Nepal Bangladesh Bank (NBB) has urged the Nepal Rastra Bank to approve its revised balance sheet for the last fiscal year, so as to adjust the recovery of its bad debts.

“We have already sent our revised balance sheet to the central bank for its approval,” an official at NBB told ShareSansar on Monday. “If the balance sheet is revised then we will be in a position to propose at least 15 to 20 percent dividend for the last fiscal year.”

NBB has made such a request as the final balance sheet it submitted to the central bank at the end of the last fiscal year does not reflect the purchase of a bulk of the share owned by NB Group, the promoters, by Bangladesh-based IFIC Bank on September 1.

The transfer of the stake from the NB Group members, which has been blacklisted by the central bank, to IFIC has brought NBB’s Non-Performing Loan to below 2 percent—from above 3 percent.

Following the deal with IFIC, NBB has been able to write back a huge portion of bad debts and thereby increase its net profit.

NBB wants its balance sheet revised also because the central bank has just decided to allow the banking and financial institutions, which were in crisis during the last fiscal year, not to make the provision for loss regarding inter-bank lending, loans and other claims for that period.

NB Group had officials transferred 2.91 million unit shares to Bangladesh-based IFIC Bank so as to pay back the Group’s outstanding principle and interest at the different banks, including NBB.

Earlier, in the last fiscal year financial report, the bank had published NPL of 3.14% but with write off of bad loans of NB Group, the NPL has come to dip by more than one percent.

NB Group’s exit from the bank has already started to surge its share price. Expectations of improved corporate governance and loan recovery have pushed the share price of the bank to more than Rs 350 which was being traded at Rs 120 a year ago.

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NRB issuing second reverse repo within a week NBB urges NRB to revise its balance sheet NRB paves way for BFIs to distribute dividend Major Companies’ dividend declaration hints at surging market A country has its own timeline. So Nepal’s time will also come. It will not be pretty, it will not be painless, but we must wait and we mustn’t lose hope. NBB NPL DIPS BY MORE THAN 1% Our leaders have to understand that a country’s development is not possible without developing and expanding the capital market. Scramble for NB Bank shares as rumors on IFIC payment swirls Money to arrive in two days, says a bank staff Rising provision, NPA threaten to cast shadow over banks’ profits The mutual fund industry is not small; it is just that the industry is virgin.

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