KATHMANDU, Nov 9: Deposit and Credit Guarantee Fund (DCGF) is set to invest Rs 4.66 billion, currently held across various banks.
Commercial banks licensed by Nepal Rastra Bank (NRB) will be eligible to obtain the investment by November 10. The DCGF has also outlined criteria for banks seeking to access the funds.
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To qualify, a bank must have completed at least five years of operation and recorded continuous profits for the past five years. In addition, banks must maintain the minimum capital adequacy ratio as mandated by NRB, have non-performing loans below eight percent of total loans, and maintain a minimum 20 percent ratio of net liquid assets to local deposits.
Other eligibility requirements include compliance with NRB’s credit-to-deposit and capital adequacy ratios, and banks must not have faced penalties—other than warnings—as per NRB regulations within the past six months. If previously placed under prompt corrective action, at least three months must have passed since its release.
The DCGF also requires that banks must not be declared problematic under Section 86 of the NRB Act, 2058. If previously declared problematic, a six-month period must have elapsed since clearance. For private-sector banks, shares allocated to the public must be listed on NEPSE.
The DCGF retains discretion over whether or not to invest the announced amount. Banks meeting the criteria must submit a sealed proposal along with a self-declaration affirming compliance. Financial indicators included in the proposal must be supported by quarterly publications, or if published monthly, must be certified by the bank’s internal auditor.
