KATHMANDU: Stay updated with Nepal News’ Evening Economic Briefing—a concise roundup of the day’s key financial activities in Nepal. Here’s today’s business news summary-

NEPSE Drops by 46.33 Points, Closes at 2,772.10: The Nepal Stock Exchange (NEPSE) fell by 46.33 points (1.64%) to close at 2,772.10, extending its previous session loss. The index fluctuated between 2,819.92 and 2,766.08, with a total turnover of Rs. 10.09 Arba from 315 companies.

Himalayan Reinsurance Limited (HRL) led the turnover with Rs. 1.12 Arba, closing at Rs. 1,046. Three stocks gained 10%, while two saw a 10% decline. The Others Index suffered the highest sectoral loss (2.69%), while the Trading Index dropped the least (0.81%).

Commercial Banks Report Rs. 34.95 Billion Net Profit in Seven Months: In the first seven months of the fiscal year, commercial banks in Nepal earned a total net profit of Rs. 34.95 billion. Nabil Bank led with a net profit of Rs. 4 billion, followed by Global IME Bank at Rs. 3.89 billion and Nepal Investment Mega Bank at Rs. 3.43 billion. Other top earners included Everest Bank (Rs. 2.57 billion), Nepal Bank Limited (Rs. 2.45 billion), and NMB Bank (Rs. 2.34 billion). NIC Asia reported the lowest profit at Rs. 464.7 million.

500 MW Solar Projects Receive Survey Licenses: The Department of Electricity Development (DOED) has issued survey licenses for solar projects with a total capacity of 500 MW. These licenses were granted to 40 projects selected through Nepal Electricity Authority’s (NEA) bidding process. NEA had invited bids for around 1,000 MW of solar projects last Chaitra, receiving applications for 960 MW. Many applicants were waiting for recommendations from the Department of Irrigation, as some projects were located on irrigated land and faced possible cancellation. However, after DOED amended its guidelines requiring approval from local governments instead of the irrigation department, the survey licensing process accelerated.

Nagdhunga Tunnel Project 86% Complete, Expected to Finish in a Year: The Nagdhunga Tunnel, Nepal’s first transportation tunnel, is 86% complete and expected to be operational within a year. The 2,688-meter tunnel connecting Balambu (Kathmandu) to Sisnekhola (Dhading) has already achieved a breakthrough. Key structures, including three underpasses, four box culverts, one overpass, and three bridges, are completed, while a flyover remains under construction. The project, initially set for completion in 42 months, faced delays due to COVID-19 and technical challenges. Once operational, it will reduce traffic congestion and shorten the main road by 7.5 km.

10 Candidates Apply for NEPSE CEO Position: A total of 10 candidates have applied for the position of Chief Executive Officer at the Nepal Stock Exchange (NEPSE) by the deadline of Falgun 25. Among the applicants are former NEPSE CEO Krishna Bahadur Karki and CDS & Clearing CEO Purna Prasad Acharya.

Other notable applicants include Badri Prasad Pyakurel, Narad Kumar Luitel, Yubaraj Dahal, Prabin Adhikari, Chudamani Chapagain, Bimal Kumar Tiwari, Hemant Basyal, and Mukundaraj Joshi. A selection committee led by a Finance Ministry official will now evaluate the candidates.

Loan Interest Rates Drop Amid Weak Credit Growth: By the end of Magh, the average loan interest rate declined to 8.55%, while the deposit rate fell to 4.62%. Weak credit growth despite rising deposits has led banks to lower deposit rates, reducing their cost of funds. Banks are competing to lower premium rates, ranging from 0% to 1%, further decreasing loan interest rates. Commercial banks invested around Rs. 4 Arba in loans during Magh. Key loan rates include term loans at 8.71%, overdrafts at 9.61%, cash credit at 8.59%, and real estate loans at 8.91%.

Finance Minister Poudel Urges Against Small Budget Proposals: Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel has urged ministries not to propose projects under NPR 30 million for the FY 2082/83 budget. In discussions with the Ministries of Water Supply and Federal Affairs, he emphasized prioritizing large-scale, transformative projects of national importance.

Poudel also stressed devolving projects to provincial and local governments, even with seed funding if necessary. The Finance Ministry has already held similar discussions with other key ministries, including infrastructure, energy, and health.

BB Airways Fails Again as NOC Deadline Expires: BB Airways’ plan to re-enter Nepal’s aviation sector has collapsed again, as its No Objection Certificate (NOC) from the Civil Aviation Authority of Nepal (CAAN) expires in two days. The airline, led by NRN businessman Bhaban Bhatta, had secured approval to bring three Airbus narrow-body aircraft but failed to do so within the given timeframe. This marks another setback after its previous failed attempt in 2012. The airline now faces a fresh regulatory process if it wants to restart operations.

Kulman Ghising Submits 16-Page Clarification to Energy Ministry: Nepal Electricity Authority’s Executive Director, Kulman Ghising, has submitted a 16-page clarification to the Ministry of Energy, Water Resources, and Irrigation as per the Cabinet’s directive. The ministry had asked for an explanation on four points, including the alleged violation of the performance agreement. Ghising provided a seven-point response addressing concerns over last year’s performance report and his signing of an India-Nepal energy trade agreement. His response will determine the next steps regarding his tenure.

Dordi Khola Hydropower Announces 100% Right Share Issue: Dordi Khola Hydropower Company Limited (DORDI) has issued an offer letter for 100% right shares. Applications will be open from 19th Chaitra 2081 to 8th Baishakh 2082. The company will issue 10,542,604 right shares worth Rs. 1.05 Arba, doubling its paid-up capital to Rs. 2.10 Arba. Sanima Capital Limited is the issue manager. Investors holding shares before 15th Falgun are eligible to apply.

Nepal Insurance Proposes 15.79% Dividend: Nepal Insurance Company Limited (NICL) has proposed a 15.79% dividend for FY 2080/81, including 15% bonus shares and a 0.79% cash dividend. With a paid-up capital of Rs. 1.63 Arba, the bonus shares amount to Rs. 24.66 Crores, and the cash dividend is Rs. 1.29 Crores. Approval from the Nepal Insurance Authority and AGM is required.

Farmers Relieved as Snowfall Aids Crops: Farmers in the upper region of the district are pleased with the recent snowfall, which has covered areas from Chame to Upper Manang.

Yangdung Gurung said snowfall is crucial for irrigation, as delayed snowfall disrupts farming. Freezing temperatures also cause water sources to solidify, making irrigation difficult.

Serap Bista noted that the snowfall will benefit apple cultivation, vegetables, and food crops. Additionally, tourism has increased with the snowfall.

Young Entrepreneurs Thrive in Handmade Crafts Business: Handmade crafts are gaining popularity among young people, with many selling their creations online. Inspired by internet trends, college students Smriti Gurung and Chasum Rai began making thread flowers and selling them online.

At the “Market March” event in Dharan-19, they showcased their products for the first time. Other female entrepreneurs, including Puja Tamang and Anusa Magar, also displayed handmade crafts, highlighting the event’s support for women-led businesses.

Gold Price Rises, Silver Drops in Nepal’s Market: Gold prices in Nepal increased by Rs 100 per tola on Sunday, reaching Rs 170,300, according to the Federation of Nepal Gold and Silver Dealers’ Association. On Friday, it was Rs 170,200 per tola. Meanwhile, silver prices dropped by Rs 5, now trading at Rs 1,985 per tola.