Kathmandu. Commercial banks have demanded to be allowed to sell their investments in the stock market immediately after making a purchase. The Chief Executive Officers (CEOs) of commercial banks have made this proposal to the Governor of the National Bank, Bishwanath Poudel.
During the preparation of the monetary policy for the upcoming fiscal year 2082/083, Governor Poudel called the CEOs of A, B, C and D category banks and listened to the problems of banks and financial institutions for three hours.
During that, the CEOs of commercial banks have demanded to remove the time period for buying and selling shares.
A CEO of a commercial bank who participated in the discussion said, “There is a law that allows banks to buy 1 percent of their core capital, but after buying shares, they have to wait 365 days to sell them, which will make it difficult for banks to sell their shares. We feel that this is unfair, so this limit should be revised.”
The CEO says that removing the 1-year lock-in period for banks will make the stock market more dynamic.
The CEO hopes that the monetary policy to be introduced by the National Bank will remove restrictions on investment in the stock market by banks and financial institutions.
Through the third quarterly review of the monetary policy of 2078 BS, the National Bank had set a one-year period for banks to sell their investments in shares and debentures.
This has created obstacles for banks to make short-term investments in the stock market and has also Investors have complained that the system has not even made the stock market dynamic.
Banks and financial institutions have been criticizing the policy for affecting market liquidity and the stock market itself. Banks have requested the NRB to repeal this arrangement and adopt a policy that allows banks to engage in short-term transactions in the stock market.
Banks’ share in share collateral loans
According to the details released by the NRB as of mid-Baishakh, 20 commercial banks have disbursed share collateral loans worth Rs 133.1377 million.
As of mid-Baishakh, Nabil Bank has disbursed share collateral loans worth Rs 14.5935 billion, Global IME Bank Rs 11.5914 billion, Kumari Bank Rs 9.5744 billion, and Nepal Bank Rs 7.7719 billion. .
Similarly, in the 10 months of the current fiscal year, the National Commercial Bank has disbursed Rs 5.73 billion 3.9 billion, Nepal Investment Mega Bank Rs 3.27 billion 4.4 billion, Himalayan Bank Rs 2.44 billion 8.9 billion, Nepal SBI Bank Rs 610 million 4.3 billion, and Everest Bank Rs 2.90 billion 8.8 billion in share-backed loans.
According to the data released by the National Bank, NIC Asia Bank has disbursed Rs 2.17 billion 6.1 billion, Machhapuchhre Bank Rs 1.89 billion 6.4 billion, Lakshmi Sunrise Bank Rs 5.45 billion 1.6 billion, and Siddhartha Bank Rs 7.86 billion 1 billion.
Similarly, the Agricultural Development Bank has disbursed Rs 3 billion 397.9 million rupees, Citizens Bank’s 679.96 billion rupees, Prime Commercial Bank’s 782.14 billion rupees, NMB Bank’s 229.1 million rupees, Prabhu Bank’s 470.31 billion rupees, and Sanima Bank’s 248.92 billion rupees have been affected by share collateral loans. .
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