NEPSE Heatmap

See the whole market at a glance.

Primary issues

Income & debt

Live market

Featured

Insights & Analysis

Expert reads and market education.

Explore

Read & learn

NEPSE Trading Network

The NEPSE Journal

Insights & Analysis

Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

All Articles — Page 67

2772 posts

Top3 min read
International Support Strengthens Nepal’s Election Management, but Raises Questions on Long-Term Capacity
International Support Strengthens Nepal’s Election Management, but Raises Questions on Long-Term Capacity Nepal’s upcoming House of Representatives election, scheduled for Falgun 21, is being backed by logistical, financial, and technical assistance from India, Japan, and the development partner United Nations Development Programme (UNDP). According to the Ministry of Finance, Nepal, this international support is expected to play a key role in ensuring smooth election management and strengthening administrative efficiency. One of the major components of this assistance is India’s provision of vehicles for election operations. The Ministry of Home Affairs had initially requested 750 vehicles, considering the geographical challenges and security requirements across the country. After reviewing practical needs, the number was revised to 650. So far, India has delivered 538 vehicles in different phases, mainly in the form of cabin pickup vans, which are being used for transportation, logistics, and field coordination.
Dipesh Ghimire4 Feb, 2026
Top3 min read
Small and Mid-Level Investors Drive Margin Loan Growth, but Market Power Remains Concentrated
Small and Mid-Level Investors Drive Margin Loan Growth, but Market Power Remains Concentrated Nepal’s stock market is witnessing a gradual shift in participation, with small and mid-level investors becoming increasingly active. Recent data published by Nepal Rastra Bank shows that margin lending in the range of NPR 2.5 million to NPR 10 million has recorded the highest growth in the first six months of the current fiscal year 2082/83. This trend reflects a growing willingness among ordinary investors to re-enter the market through bank financing. According to the central bank’s report, loans between NPR 5 million and NPR 10 million increased by 12.8 percent, while those between NPR 2.5 million and NPR 5 million rose by 10.3 percent. Loans below NPR 2.5 million also grew by 7.9 percent. Analysts view this as a sign that retail and mid-tier investors are regaining confidence after a prolonged period of market uncertainty and subdued trading activity.
Dipesh Ghimire4 Feb, 2026
Top4 min read
Excess Liquidity Persists as Credit Demand Remains Weak in Nepal’s Banking System
Excess Liquidity Persists as Credit Demand Remains Weak in Nepal’s Banking System Despite a continued rise in deposits, Nepal’s banking system has failed to translate abundant liquidity into productive credit expansion in the current fiscal year. Data released by Nepal Rastra Bank show that while banks and financial institutions are flush with funds, private sector credit demand remains subdued, deepening the challenge of excess liquidity management and slowing domestic economic momentum. The central bank notes that interest rates have fallen to historically low levels this fiscal year, a condition that would normally encourage borrowing and investment. Anticipating surplus liquidity, Nepal Rastra Bank issued bonds worth NPR 200 billion in the month of Poush alone to absorb excess funds from the system. However, even after these interventions, pressure on interest rates has not fully eased, suggesting that liquidity absorption measures have been insufficient relative to the scale of surplus funds.
Dipesh Ghimire3 Feb, 2026
Top3 min read
Credit Growth Slows Despite Ample Liquidity, Raising Concerns Over Economic Recovery
Credit Growth Slows Despite Ample Liquidity, Raising Concerns Over Economic Recovery Nepal’s banking data for the second quarter of the current fiscal year point to a continuing slowdown in private sector credit expansion, underlining the fragile state of domestic economic activity. Figures released by Nepal Rastra Bank show that lending to the private sector has grown by only 3.6 percent by mid-January, adding NPR 197.47 billion and taking the total outstanding credit to NPR 5,695.17 billion. The pace of growth remains noticeably weaker than policymakers had anticipated at the start of the fiscal year.
Dipesh Ghimire3 Feb, 2026
Top2 min read
Strong External Buffers Mask a Sluggish Domestic Economy, Central Bank Data Shows
Strong External Buffers Mask a Sluggish Domestic Economy, Central Bank Data Shows Nepal’s economy presents a tale of two contrasting realities, according to the six-month review of the current fiscal year released by Nepal Rastra Bank. While external sector indicators have improved markedly—easing fears of balance-of-payments stress—the pace of domestic economic activity remains slower than expected, raising concerns about investment, production, and job creation. On the surface, macroeconomic stability appears to be returning. Inflation has eased significantly, foreign exchange reserves are at historically comfortable levels, and remittance inflows continue to surge. These developments suggest that the economy has moved away from the turbulence of recent years, when high inflation, liquidity shortages, and external payment pressures dominated policy discussions.
Dipesh Ghimire3 Feb, 2026
Top3 min read
Inflation Falls Sharply as Food Prices Ease, but Cost Pressures Persist in Services and Wages
Inflation Falls Sharply as Food Prices Ease, but Cost Pressures Persist in Services and Wages Nepal’s inflationary pressure continued to ease in mid-January (Poush 2082), with annual point-to-point consumer inflation dropping to 2.42 percent, according to Nepal Rastra Bank. This marks a significant decline from 5.41 percent recorded during the same period last year, signaling a notable improvement in price stability amid subdued domestic demand and relatively stable supply conditions. The sharp slowdown in inflation has been largely driven by falling food prices. During the review month, inflation in the food and beverage group turned slightly negative at –0.09 percent, compared to a steep 7.67 percent rise a year earlier. The reversal suggests that easing pressure on essential commodities has played a decisive role in pulling down overall inflation, offering temporary relief to households that had faced prolonged price shocks in previous years.
Dipesh Ghimire3 Feb, 2026
Advertisement
Top2 min read
US–India Trade Deal Marks a Strategic Shift in Global Commerce and Geopolitics
US–India Trade Deal Marks a Strategic Shift in Global Commerce and Geopolitics The announcement of a new trade agreement between the United States and India by former US President Donald Trump signals a notable reset in economic relations between the two countries. By reducing tariffs on Indian imports from 25 percent to 18 percent, Washington has sent a message that trade tensions with one of Asia’s largest economies are giving way to a more cooperative and interest-aligned approach. The decision is being viewed not merely as a tariff adjustment, but as a recalibration of broader economic and strategic priorities. At the heart of the agreement lies India’s commitment to dismantle its existing trade barriers and realign parts of its energy policy. Trump’s statement that India has agreed to stop purchasing oil from Russia adds a geopolitical dimension to what might otherwise be seen as a purely commercial deal. The removal of the additional 25 percent “penalty tariff” imposed earlier suggests that the US is willing to reward policy alignment with tangible economic concessions, blending trade policy with foreign policy objectives.
Dipesh Ghimire3 Feb, 2026
Top2 min read
World Bank’s USD 95 Million Approval Signals a Strategic Push for SME-Led Growth in Nepal
World Bank’s USD 95 Million Approval Signals a Strategic Push for SME-Led Growth in Nepal The approval of a USD 95 million financing package by the World Bank marks a significant policy moment for Nepal’s financial sector, particularly at a time when small and medium-sized enterprises (SMEs) continue to face persistent barriers in accessing affordable credit. More than a routine development project, the newly endorsed Sustainable and Inclusive Finance Project reflects an attempt to address long-standing structural weaknesses that have constrained private-sector-driven growth in the country.
Dipesh Ghimire3 Feb, 2026
Top3 min read
Large Reservoir Hydropower Projects Key to Nepal’s Energy Security and Economic Sustainability
Large Reservoir Hydropower Projects Key to Nepal’s Energy Security and Economic Sustainability Kathmandu — Ensuring energy security, reducing electricity imports, and steering Nepal toward sustainable economic growth will require a decisive shift toward large-scale and reservoir-based hydropower projects, according to energy sector experts. Despite a significant rise in installed electricity capacity in recent years, Nepal continues to face seasonal power shortages due to its heavy dependence on run-of-river hydropower projects. Speaking at an energy policy dialogue organized by Martin Chautari, former Chief Executive Officer of Hydroelectricity Investment and Development Company Ltd, Arjun Kumar Gautam, said that Nepal’s current hydropower expansion has not translated into year-round energy reliability. He explained that because most projects are run-of-river, electricity generation drops sharply during the dry season, forcing the country to import large volumes of power every year.
Dipesh Ghimire1 Feb, 2026
Top3 min read
Nepal’s Banks Show Income Stability, but Profit Quality Signals Deeper Stress
Nepal’s Banks Show Income Stability, but Profit Quality Signals Deeper Stress Kathmandu — Financial results released by Nepal’s commercial banks for the second quarter of the current fiscal year reveal a cautiously improving headline picture, but a closer examination exposes persistent structural weaknesses within the banking system. While net interest income—the core revenue stream for banks—has shown modest growth, rising dependence on unrealized interest income and an increase in bad loans continue to cast doubt on the sector’s underlying financial strength. By mid-January, the country’s 20 operating commercial banks had collectively generated net interest income of approximately NPR 96 billion, marking a year-on-year increase of 3.72 percent. This improvement, though positive, remains relatively subdued given the scale of excess liquidity in the banking system. The data suggest that banks are earning slightly more from their lending activities, but not enough to indicate a strong revival in credit demand or economic activity.
Dipesh Ghimire1 Feb, 2026

NEPSEtrading

Primary issues

Income & debt

Live market

Read & learn

NEPSE Trading Network

Insights & Analysis

All Articles — Page 67

International Support Strengthens Nepal’s Election Management, but Raises Questions on Long-Term Capacity

Small and Mid-Level Investors Drive Margin Loan Growth, but Market Power Remains Concentrated

Excess Liquidity Persists as Credit Demand Remains Weak in Nepal’s Banking System

Credit Growth Slows Despite Ample Liquidity, Raising Concerns Over Economic Recovery

Strong External Buffers Mask a Sluggish Domestic Economy, Central Bank Data Shows

Inflation Falls Sharply as Food Prices Ease, but Cost Pressures Persist in Services and Wages

US–India Trade Deal Marks a Strategic Shift in Global Commerce and Geopolitics

World Bank’s USD 95 Million Approval Signals a Strategic Push for SME-Led Growth in Nepal

Large Reservoir Hydropower Projects Key to Nepal’s Energy Security and Economic Sustainability

Nepal’s Banks Show Income Stability, but Profit Quality Signals Deeper Stress

NEPSEtrading

Primary issues

Income & debt

Live market

Read & learn

NEPSE Trading Network

Insights & Analysis

All Articles — Page 67

International Support Strengthens Nepal’s Election Management, but Raises Questions on Long-Term Capacity

Small and Mid-Level Investors Drive Margin Loan Growth, but Market Power Remains Concentrated

Excess Liquidity Persists as Credit Demand Remains Weak in Nepal’s Banking System

Credit Growth Slows Despite Ample Liquidity, Raising Concerns Over Economic Recovery

Strong External Buffers Mask a Sluggish Domestic Economy, Central Bank Data Shows

Inflation Falls Sharply as Food Prices Ease, but Cost Pressures Persist in Services and Wages

US–India Trade Deal Marks a Strategic Shift in Global Commerce and Geopolitics

World Bank’s USD 95 Million Approval Signals a Strategic Push for SME-Led Growth in Nepal

Large Reservoir Hydropower Projects Key to Nepal’s Energy Security and Economic Sustainability

Nepal’s Banks Show Income Stability, but Profit Quality Signals Deeper Stress