Fierce competition is likely
to erupt in Nepal’s
banking sector. At a
time when the market pie has
not increased and over four
dozen industries are lying
closed across the country,
the rise in number of
financial institutions is
leading to cut-throat
competition in the domestic
banking sector. Apart from
over a half dozen financial
institutions — including
B-class development banks
and C-class finance
companies — the entry of two
‘big’ A-class commercial
banks will not only
swell the number to 27 but
also force them to look for
new investment avenues.
The proposed Peoples’
Bank Nepal Ltd — the
26th commercial bank — got
the green signal on
September 25. Mero Bank
Ltd — the 27th commercial
bank — also recently got
permission from
Nepal Rastra bank
to
operate after it deposited
five per cent of its paid up
capital with the central
bank. “Right after we get
the operating licence, we’ll
start operations,” said Dr
Duman Thapa, coordinator of
Mero Bank Ltd. With an
authorised capital of Rs 4
billion and paid up capital
of Rs 2.45 billion, the
proposed Mero Bank Ltd has a
total of 1,328 promoters.
“The promoters have 70 per
cent share — Rs 1.71 billion
— and the rest 30 per cent
share — Rs 730 million —
will be floated among the
public within one year of
the bank beginning
operations,” Thapa added.
The bank that consists of
five groups of promoters has
industrialists, businessmen,
social workers, Non-Resident
Nepalis (NRNs), economists,
diplomats, private school
promoters, professors,
doctors, lawyers, engineers
and tourism entrepreneurs.
A 13-member coordinating
committee has been formed,
with Dr Thapa as coordinator
and Dr Govinda Nepal, Bhoj
Bahadur Shah, Muktiram
Pandey, Gopal Khadka, Gopal
Khanal, Rameshwor Sapkota,
Indra Bahadur Malla, Bijay
Sambahamphe, Madan Acharya,
Ishwor Gurung, Parmeshwor
Panta, Sabhu Bikram Thapa
and Tulsi Pokhrel as
members. Prof Dr Madan Kumar
Dahal is chairman of the
proposed bank that has - for
the first time in the
banking history of Nepal -
an advisory council headed
by former minister and
diplomat Dr Bhesh Bahadur
Thapa as its chairman.
People’s Bank Nepal Ltd has
a paid up capital of Rs 2
billion. “It is the first
bank having Rs 2 billion
paid up capital after the
central bank increased the
paid up capital limit for
commercial banks,” according
to the bank. The bank, with
898 promoters, has Guru
Prasad Neupane as its
chairman while Sailendra
Guragain, Keshav Bahadur
Rayamajhi, Dharmadhoj
Parajuli, Nirmaljyoti
Tuladhar and Chiranjeevi Dwa
are its promoters. The bank
is expected to come into
operation by the second week
of next April.
Licensed Commercial Banks
Nepal Bank Ltd (November 15,
1937)
Rastriya Banijya Bank
(January 23, 1966)
Nabil Bank Ltd (July 16,
1984)
Nepal Investment Bank Ltd
(February 27, 1986)
Standard Chartered Bank
Nepal Ltd (January 24, 1986)
Himalayan Bank Ltd
(January
18, 1993)
Nepal SBI Bank Ltd (July 7,
1993)
Nepal Bangladesh Bank
Ltd
Everest Bank Ltd (October
18, 1994)
Bank of Kathmandu
Ltd (March
3, 1995)
Nepal Credit and Commerce
Bank (October 14, 1996)
Lumbini Bank Ltd (July 17,
1998)
NIC Bank Ltd (July 21, 1998)
Kumari Bank Ltd (April 3,
2001)
Machhapuchhre Bank Ltd
(October 3, 2000)
Laxmi Bank Ltd (April 3,
2002)
Siddhartha Bank Ltd
(December 24, 2002)
Agriculture Development Bank
Ltd
Global Bank Ltd (January 2,
2007)
Citizens’ International Bank
Ltd (April 20, 2007)
Prime Commercial Bank
(September 24, 2007)
Bank of Asia Nepal Ltd
(October 12, 2007)
Sunrise Bank
Ltd (October
12, 2007)
Development Credit Bank Ltd
(Upgraded in 2007)
NMB Bank Ltd (Established in
1996/Upgraded in 2007)
Source, Himalayan Times
Other banking news and
articles:
Nepal Rastra Bank
tightens minimum reserve
rules for banks
(23-10-2008)
Children saving scheme
by Nepal Investment Bank
(21-8-2008)
Profit of Agriculture
Development Bank
(25-7-2008)
Pashupati Development
Bank goes public
(14-7-2008)
Sunrise bank in Gabahal
Lalitpur (27-6-2008)
NIC
banks in Lahan
(14-6-2008)
NBL starts e-banking
(10-6-2008)
Nepal merchant bank -
the 25th commercial bank
in Nepal (3-6-2008)
recovery plan for bad
loans (1-1-07)
|