Sunday, April 5, 2015

Bank loan, medical college affiliation and share market

Rajesh Sharma

"Medical Collegele Sambandhan napaye Bank Dubne", some of the headlines read like this. Is it so?
Yes, banks have financed in medical college projects and their financing is primarily on physical infrastructures. The promoters also have invested equity part in such infrastructure projects. They are healthy potatoes and could be sold in the market at reasonable price. Hence, I do not buy 'bank dubne' conclusion. For some, if they have invested in non-infrastructure projects like paying allowances to Khadebabas, yes they may suffer losses. However, such financing is nominal. The banks may have to go for larger provisioning and their balance sheet may look weak, but 'dubne' is not a case at all. For short term investors, it may invite some trouble, but for long term investors, that may impact nominally if at all.

Biggest roadblock in Nepali Share Market

Rajesh Sharma

The biggest roadblock in Nepali share market is unstable political situation caused by the rivalry between K. P. Oli and Pushpa K. Dahal. All other politicians are just the part of details.