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Everest bank launches new loan scheme, KATHMANDU, September 14, 2004

Everest Bank opens 15th branch, KATHMANDU, August 19, 2004

Govt extends BFIO, KATHMANDU, July 29, 2004

NRB bans NDB deposit mobilization, KATHMANDU, July 8, 2004

Govt to set up monitoring body to oversee micro-credit institutions, KATHMANDU, July 7, 2004

EBL profit by 53 pc
KATHMANDU, September 16

Everest Bank Limited (EBL), one of the Successful joint ventures banks, ;has increased its operating profit by 53% during the fiscal year 2003/04 as compared to previous year. During the period deposits and advances increased by 20%.

Everest bank launches new loan scheme
KATHMANDU, September 14

Everest Bank Ltd (EBL), a joint venture with Punjab National Bank, India has introduce another credit scheme –Loan Against Shares- which enables the customers to enjoy the instant liquidity against the shares approved by the bank. The loan is extended to the individuals, firms, companies and the business houses as Demand Loan/Overdraft up to Rs five million and 20 million for individuals and firms/companies respectively. The facility can be availed by the borrowers to meet their personal for business needs. The customer will enjoy the liquidity at a low interest rate without having to sell the shares.

Everest Bank opens 15th branch
KATHMANDU, August 19

Everest Bank Limited (EBL), has opened its’ 15th branch at Inland Container Depot (ICD), Birgunj. The bank is also in a process of opening its extension counter at customs point- Birgunj. The branch at dry port will be fully computerized having anywhere Branch Banking System linking it with all the branches in major cities of the kingdom of Nepal.

Govt extends BFIO
KATHMANDU, July 29

The government have approved the continued enactments of the Bank and Financial Institution Ordinance (BFIO) 2004, but lowered the educational requirements for banks’ promoters and chief executive officers and made some other amendments.

As per the amendment made at cabinet meeting, the minimum educational qualification for banks’ promoters and CEOs is now fixed at bachelor’s degree. Cabinet meeting also approved the Insolvency Act, securities Act and Safe Transaction Act and forwarded them to the Palace for the Royal Seal.

With the introduction of the Insolvency Act , companies registered under the Company Act will be allowed to declare themselves bankrupt and close down. The act will primarily focus on banks and the financial sector.

Under the Safe Transaction Act, unfixed assets, vehicles and warehouses can be used as collateral to draw loans from banks and financial institutions.

Securities Act includes various provisions to make procedures for listing companies for share transactions, for delisting companies and for share trading, more professional.

These Act have been prepared with the active participation of the Ministry of Finance to simplify the procedures of the Financial Institutions Reform Program, which is run with the assistance for the World Bank.

NRB bans NDB deposit mobilization

KATHMANDU, July 8
Nepal Rastra Bank (NRB), the central bank of the country, has prohibited the Nepal Development Bank (NDB) from mobilizing further deposits, on charges of disobeying the NRB’s directions and manipulating accounts.

In the letter sent to the NDB, the NRB stated that “The audited balance sheet for the fiscal year 2002/03 failed to reflect the true financial condition of the bank and the profit-loss accounts of the bank also failed to portray the bank’s actual profit and loss scenario. NDB has to manage an additional loan-loss provision of Rs 260 million, due to which the primary capital of the bank has become negative by Rs 103.5 million.

NDB is not in a position to maintain the required primary capital, financial resources mobilization limit, single borrower limit or to follow other directives issued by the NRB, the letter further states.

“ Under such circumstances, the NRB has barred the NDB from mobilizing deposits in a bid to protect the interests of depositors,” says the letter.

Despite the NRB directive, the NDB management failed to present a credible plan and program to improve the situation. The NDB allowed Gorkha Hydropower, to change a remaining loan amount into a share investment in violation of a n NRB direction. They failed to manage an investment reconciliation fund for the purpose. The management of the bank also re-capitalized the outstanding interest on a loan that it had extended to the Holy Land International School and posted this as income. The bank didn’t even allot cent percent loan-loss provision against the loans extended to projects that had already been closed.

The central bank earlier sent a letter to the NDB for credible answers explaining why the NRB shouldn’t impose a ban o deposit mobilization on the bank. The explanation provided by the bank was unsatisfactory , so the NRB was compelled to take legal action.

Govt to set up monitoring body to oversee micro-credit institutions
KATHMANDU, July 7

Nepal Rastra Bank (NRB) is setting up a new monitoring body to oversee the operation of micro-credit institutions, cooperatives and small financial intermediaries like NRB licensed NGOs.

“The monitoring body will be established in all five development regions and kept within the functional domain of the NRB regional offices”, a source at the NRB said.

The NRB has been finding it difficult to inspect them as they exist in large numbers and operate in different parts of the country. The government in close coordination with the NRB, is developing a modality for the body’s establishment and operations.

”We are currently discussing issues like how the body will sustain itself financially and whether to establish it with government investment or to involve the private sector too,” the source said. He further said that the NRB would be its final governing body. “The monitoring body will function as a monitoring, inspection and supervisory agency for such institutions and will have rights to take action against wrongdoers who fail to abide by the set of directives it issues,” said the source.

However, according to experts, the existing NRB Act lacks a provision to allow the central bank to delegate its inspection authority to other bodies. The source said that the NRB has asked the government to make necessary changes to the Act. They expect the government to make the necessary amendments to the Act soon and are planning to bring the body into operation within the next fiscal year.