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News item 26-2-2007 |
Far-western Rural
Development Bank is
on the verge of closure
mainly due to increasing
overhead costs, inadequate
resources and problems in
loan recovery.
Established in 1992 with a
prime objective of
alleviating poverty through
loan investment for the poor
and disadvantaged groups,
the bank has an authorised
capital of Rs 120 million,
while the paid up capital
stands at Rs 58.5 million.
However, the bank is in
difficulty as it lacks
capital. The bank’s
non-performing loans (NPL)
have already crossed Rs 40
million out of a total of Rs
133.7 million worth of
investment made so far.
Annually, Rs 40 million have
been spent on administrative
expenses, staff salaries and
in
payment of interest of loans
from other banks. The annual
income has been limited at
Rs 27.5 million.
The problems have risen
because major shareholders
like the Nepal government,
Nepal Rastra Bank, Nepal
Bank Ltd, Rastriya Banijya
Bank, Standard Chartered
Bank Nepal, Nepal Investment
Bank, and Nabil Bank did not
agree to increase its
capital, said Mohan Singh
Bista, executive director of
Rural
Development Bank.
More
information about the Rural
Development Bank
Other banking news and
articles:
Banepa,
city of banks (16-12-2007)
Vibor Bikas Bank
launches Vibor Super
Yield Deposit
(14-12-2007)
Makwanpur Agriculture
Development Bank
provides new loans for
unemployed (29-11-2007)
Garima Development Bank
Limited opens in Waling
Bazaar (24-11-2007)
Nepal
bank back on track
(16-11-2007)
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)
Everest bank starts
mobile banking
(27-9-2007)
Nepal Bank begins
remittance service
(26-9-2007)
Standard Chartered PLC
to acquire American
Express Bank (19-9-2007)
Excel Development Bank
issues shares
(20-8-2007)
Rastriya
Banijya Bank reports
profit (17-8-2007)
New board members for Nepal
Rastra Bank (24-2-2007)
Nepal Stock Exchange
suspends trading of
Nepal Credit and
Commerce Bank
(30-1-2007)
Buddha on bank notes
(25-1-2007)
Rastriya
Banijya Bank
privatisation (23-1-2007)
recovery plan for bad
loans (1-1-07)
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