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Nepali Banks hit by capital flight

 
Nepalese Banks
Machha Puchchhre bank
 registered in 1998 is the first commercial bank in the western part of the Kingdom of Nepal having head office in Pokhara
 Himalayan Bank Ltd
ATM, Credit Cards and all banking services. Branches in Kathmandu, Biratnagar, Dharan, Patan, Bhaktapur, Pokhara, Butwal, Hetauda, Banepa, Birgunj
 Siddhartha bank limited
Consumer banking in Nepal. Offers US dollar saving account with high return. Branches in Kathmandu, Pokhara, Biratnagar, Birgunj
Standard Chartered
At standard Chartered we believe in being the right partner to our customers. Our home advantage scheme offers a wide range of loans at very attractive rates
 More banks in Nepal
Financial institutions
Hama finance
Good deposit schemes, 1 year fixed 7%, 3 year even 8%
Alpic everest finance
Central finance company
Ace finance company
Gorkha finance
Universal finance
Business Development Finance Inst.
Nawa Kantipur
Nawa Durga Finance Co
National finance Co.
Annapurna finance company
Union finance company
Standard Finance Limited
Capital Merchant Banking & Finance
Everest finance
Ime Financial institution
 

 
News item 25-9-2007

A large chunk of capital has been draining out because of low interest rate of Nepali banks in comparison to Indian banks. Banking and financial experts have suggested an investment-friendly environment and industrial security to stop capital flight from Nepal. “There is a huge demand for capital in India because of investment-friendly environment,” said Bijaya Kumar Sarawagi, chairman of Birgunj Finance Ltd, adding that India has also increased interest rates in deposit and in loan.
Nepali commercial banks offer three to five per cent interest rates and finance companies offer six to eight per cent, whereas Indian banks in bordering areas offer nine to 12 per cent interest rates.
Nepali banks charge six to nine per cent and finance companies charge nine to 12 per cent interest on loans, whereas Indian banks charge 13 to 15 per cent.
Last year, the capital flight to India has been calculated at around Rs 500 million from Birgunj only.

 

More about capital flight from Nepal

 

Other investment news and articles:

initial public offering Siddhartha Insurance sold out (14-9-2007)

Transactions at the stock market increased by 142 percent (28-7-2007)

Creating environment for foreign investment (19-4-2007)

improving investment environment (20-2-2007)

Loans for purchasing shares on stock market (17-2-2007)

Nepal Stock Exchange suspends trading Nepal Credit and Commerce Bank shares (30-1-2007)
 

Nepal suffering from capital flight? (1-2-2007)

 

Easy money and Nepali finance

 

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