The Conundrum Of Excess Liquidity : May 2012
The conundrum of interest rate and liquidity in the Nepali financial system is ceaselessly illogical and unpredictable, to say the least. The capital base of the banks and financial institutions (BFIs) is so awkwardly mid-sized, which is neither sufficient to finance any large project nor is the excess liquidity worth even a few billion rupees easily absorptive to the system. At present, BFIs are saying that they are in excess of some Rs 80 billion thus are announcing the cuts in the interest rates. One of the reasons of such reduction is the lack of demand of funds from the businesses, specially of those size suitable to the lending capacity of the BFIs.
Forever Businessman
Manish Kumar Agrawal’s father told him to become a machine while dealing with machines, to keep up with the pace of the fast changing business world. It is this advice that has kept him going all these years. He says life is about how well one can manage it and taking rest too often does not help matters in business. Young Manish Kumar Agrawal is the Director of HP Agrawal Group of Companies. He is also the Co-Chairperson of Employer Council and Executive Committee Member at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The youngest among his three siblings, Agrawal was born in Birgunj to a business family. He was schooled at Maisthan Bidyapith, a local school built by his grandfather Jagannath Agrawal – the first generation businessman in the family tree. Agrawal recounts that the family owned various mills that dealt in rice, flour and edible oil and this is where his business exposure began. “I got involved in my family business in the most traditional manner one can think of. While in Grade 9, I started doing small errands such as depositing drafts or encashment of cheques at the local bank,” he remembers with a smile. While Agrawal’s middle brother
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Interview
Binayak Shah is the Managing Director of the recently opened ‘multi-star’ Airport Hotel in Kathmandu. He is also the Secretary General of Nepal European Union Chamber of Commerce & Industry. Shah was with the Nepal German Chamber of Commerce & Industry as Chief Executive from 1992 to 2000. He was also associated with the Nepal – German Business Advisory Programme from 1992 to 1997 as a Local Project Leader. Shah holds a Masters Degree in Economics with specialisation in International Trade/Business and Hospitality Management. He has been the Director of Nepal’s pavilions at various international expos and has introduced Nepal to thousands of people worldwide. In an interview with Dipa Baral of New Business Age, Shah shared his views on the current status of Nepal’s foreign trade, challenges and its prospects. Excerpts:
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