KATHMANDU: Stay updated with Nepal News’ Evening Economic Briefing, your daily snapshot of Nepal’s financial landscape. This update provides key insights into market trends, economic indicators, and major financial developments, keeping you informed in a rapidly evolving economy. Whether tracking stock movements, foreign exchange reserves, or policy shifts, this briefing distills crucial data into a concise, digestible format. Designed for accuracy and relevance, it’s your essential guide to navigating Nepal’s economic pulse. Here are today’s top updates:

NEPSE Falls 32.21 Points, Turnover Reaches Rs. 8.39 Arba: The Nepal Stock Exchange (NEPSE) dropped 32.21 points (1.17%) today, closing at 2,719.20 after a previous loss of 20.68 points. The day’s turnover reached Rs. 8.39 Arba, with 15.09 million shares traded in 92,031 transactions. Himalayan Reinsurance Limited (HRL) led turnover at Rs. 58.65 Crores. Mahalaxmi Bikas Bank (MLBL) gained 9.98%, while Nesdo Sambridha Laghubitta (NESDO) fell 6.69%. The Development Bank Index rose 1.93%, while Manufacturing and Processing declined 2.49%.

Commercial Banks Aggressively Increase Margin Lending by Rs. 93 Billion: Commercial banks have aggressively expanded share mortgage loans, disbursing Rs. 93.12 billion in seven months—39.84% more than last year. Nabil Bank leads with Rs. 12.96 billion (10.70% growth), followed by Global IME at Rs. 11.64 billion (75.72% growth). Nepal SBI, Machhapuchhre, and Kumari Bank recorded the highest growth rates. However, NIC Asia and Himalayan Bank saw declines of 43.61% and 20.62%, respectively.

Development Banks Record Over Rs. 3 Billion in Profit in Seven Months: According to Nepal Rastra Bank, 15 listed development banks earned a total profit of Rs. 3.18 billion in the first seven months of the current fiscal year, marking a 27.41% increase from Rs. 2.49 billion in the same period last year.

Garima Development Bank led with Rs. 638.2 million in profit, followed by Muktinath (Rs. 629.5 million) and Shine Resunga (Rs. 446.6 million). Meanwhile, Excel Development Bank faced the highest loss of Rs. 189 million. Sindhu Development Bank recorded the highest profit growth at 188.52%.

Consumer Court to Begin Operations from March 15: Nepal’s Consumer Court will start functioning from March 15, as announced by Minister Ajaya Kumar Chaurasiya in Parliament. Established under the Consumer Protection Act, 2075 BS, the court will handle consumer-related cases in Kathmandu, Lalitpur, and Bhaktapur. Judge Ram Prasad Sharma has been appointed chairperson, with Gehendra Raj Regmi and Ananda Raj Pokharel as members. The initiative aims to strengthen consumer rights and ensure swift legal action against unfair trade practices.

Stock Market to Open for Only Four Days This Week: The stock market will operate for just four days this week, with Wednesday (Falgun 28) being the last trading day. Due to the Holi holiday on Thursday and the weekend, trading will resume only on Chaitra 3. Investors speculate that the market may gain momentum after Nepal Rastra Bank Governor Maha Prasad Adhikari begins his leave next week.

Foreign Education Drains Rs 64.15 Billion in Seven Months: Nepal Rastra Bank reports Rs 64.15 billion spent on foreign education in seven months, slightly down from Rs 66.64 billion last year. Travel spending rose 10.6% to Rs 115.88 billion. Despite calls for quality education and youth retention, hefty outflows continue, contributing to a Rs 50.22 billion decline in net service income.

Patan High Court Halts Bishal Bazar’s AGM: Patan High Court has issued an interim order to stop Bishal Bazar’s annual general meeting (AGM), scheduled for Falgun 29. The order, issued on Falgun 26 by Justices Tanka Prasad Gurung and Rishi Raj Bhandari, follows a writ petition by shareholder Sunil Kumar Shakya. The court ruled the AGM could harm shareholder interests and ordered Bishal Bazar to maintain the status quo and submit a written response within 15 days.

Nepal’s Industrial Capacity Utilization Drops to 48.3%, Lowest in Eight Years: Nepal’s average industrial capacity utilization fell to 48.3% in FY 2023/24, the lowest in eight years, according to Nepal Rastra Bank (NRB). Persistent challenges such as poor infrastructure, lack of investment, and skilled labor migration continue to hinder industrial growth. Pashmina industries had the highest utilization at 97.9%, while vegetable ghee plants recorded just 0.9%. Key industries, including cement, processed food, and footwear, saw gains, whereas oil, textiles, pharmaceuticals, and steel industries reported a decline.

Declining Interest Rates Reduce Attraction for Fixed Deposits: As banks continue lowering deposit interest rates, savers are losing interest in fixed deposits. Over the past year, fixed deposits have decreased by Rs. 1.42 trillion, converting into regular savings instead. With rates still falling, many depositors prefer holding funds in regular savings or short-term three-month fixed deposits. Banks, facing excess liquidity, are unwilling to offer high interest rates on long-term fixed deposits. Nepal Rastra Bank reports an average deposit interest rate of 4.62% and lending rate of 8.55% as of Magh-end. Nepal Bankers’ Association President Santosh Koirala says depositors are waiting for rates to rise before renewing fixed deposits.

Nepal Ranked 7th Most Polluted Country in Global Air Quality Report: Nepal has been ranked the world’s seventh most polluted country in IQAir’s World Air Quality Report 2024, with an average PM2.5 concentration of 42.8 µg/m³—over eight times the WHO’s safe limit. Kathmandu ranked 193rd among polluted cities, with PM2.5 levels exceeding WHO limits by over ten times in five months. Chad, Bangladesh, and Pakistan topped the global pollution rankings.

Om Megashree Pharmaceuticals Opens IPO for General Public: Om Megashree Pharmaceuticals Limited has opened its IPO issuance of 14,76,000 shares at Rs. 100 per share from Falgun 27, 2081. The early closing date is Chaitra 3, with a possible extension until Chaitra 12. Prabhu Capital Limited is the issue manager. The company, based in Chitwan, manufactures pharmaceuticals and began partial operations in February 2024. CARE Ratings Nepal has assigned a ‘CARE-NP BB- (Is)’ rating, indicating moderate default risk.

Banana Farming Begins in Gulmi, Reviving Barren Land: Bhagwati Agricultural Firm has started banana farming on 20 ropanis of leased barren land in Resunga-4, Gulmi. Operator Jhabi Pandey has planted 300 banana plants, aiming for gradual expansion. Mayor Khil Dhoj Panthi assured municipal support for commercial farmers. The initiative promotes self-employment and local banana cultivation, meeting market demand.

One-Day Potato Exhibition Held in Jumla: A one-day potato exhibition was organized in Khalanga, Jumla, showcasing potatoes from high-altitude areas of all eight local levels. The event, held at Krishna Temple premises in Chandannath-5, was coordinated by the Agriculture Development Office, Land Problem Resolution Commission, and Nepal Journalists Federation. Experts emphasized the event’s role in encouraging farmers and boosting potato marketability. This year, potato farming in Jumla expanded to 2,290 hectares, yielding 35,930 metric tons—an increase from last year’s 34,450 metric tons.

Gold Price Drops by Rs 500 Per Tola: Gold prices in Nepal fell by Rs 500 per tola today, setting hallmark gold at Rs 169,900 per tola, down from Rs 170,400 on Monday. Silver prices also declined by Rs 15 per tola, now fixed at Rs 1,970. The drop reflects fluctuations in the market.