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Banks move to rural areas because of crowded cities

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News item 4-6-2007

Ending over two-decades of highly urban-centric presence, private commercial banks are all set for a major strategic transformation: City is too crowded and competitive, seek out newly emerging areas. Interestingly, long-ignored far flung areas like Jumla and Baglung have been on top list of leading commercial banks for the next phase of branch expansion, thanks to what they call as 'vast unexploited potentialities'. Nabil Bank, the first joint venture bank, has acquired permission to open 10 branches in different emerging areas while Bank of Kathmandu (BoK) is also planning to set up seven branches, most of which will be in places as far away as Jumla. Several other banks are also working out to expand their bases to rural areas, said insiders. “After carrying out a thorough homework and developing a new strategy, we are soon opening ten more branches this fiscal year in various places like Baglung and Dang,” said Anil Shah, chief executive officer of Nabil Bank. Radhesh Pant, managing director of BoK echoed similar opinion and said that intense competition among commercial banks in the capital is the main driving force behind their proposed expansion to rural areas. Whatsoever the reason, one hard fact is that rapidly rising remittance business in urban areas is the principal driving force for the lure of commercial banks. Search for new business For years, the banks focused on only corporate houses to put in their money. But when they started sensing the heat in the sector, commercial banks slowly shifted toward consumer lending.

 

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Other banking news and articles:

Nabil Bank Nepal gets international rating (26-2-2008)
Prime commercial bank launches Prime gold saving scheme (18-2-2008)
Profit of Global Bank (1-2-2008)
Neelgiri Development Bank collected a deposit of Rs 45.7 million (21-1-2008)
Nabil Bank inaugurates nine new branches (13-11-2007)

More banks come into operations in Nepal (13-10-2007)
Nepal Merchant Banking and Finance to become a commercial bank (19-10-2007)
Nepal Bank begins remittance service (26-9-2007)
Standard Chartered PLC to acquire American Express Bank (19-9-2007)
Citizens Bank International kicks off commercial operation (21-4-2007)
Rastriya Banijya Bank opens branch in Banepa  (8-2-2007)

Nepal Stock Exchange suspends trading of Nepal Credit and Commerce Bank (30-1-2007)
Development Credit Bank results (29-1-2007)
Buddha on bank notes (25-1-2007)
agricultural development bank loans (24-1-07)
recovery plan for bad loans (1-1-07)

 

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