KATHMANDU, Jan 2: The National Cooperative Bank Limited (NCBL) is mulling to increase its share capital more than two and a half folds to Rs 8 billion, in order to increase its lending capacity to the cooperatives.
Badri Guragain, chief executive officer of NCBL, said they have planned to endorse the proposal through the bank’s annual general meeting scheduled for January 14. “We have made the move due to an increasing demand for funds from cooperatives in order to expand their businesses,” he said.
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Currently, it is mandatory for commercial banks to have a paid-up capital of at least Rs 8 billion. Provided the NCBL realizes its plan, it will have a capital base similar to that of an ‘A’ class financial institution.
As of now, NCBL has incorporated 14,000 out of 30,000 cooperatives operating across the country. Guragain said they have planned to bring in small cooperatives under their umbrella in order to improve their access to financial resources to expand their business.
