KATHMANDU, Nov 11: Nepal Rastra Bank (NRB) has decided to invest Rs 3.7 billion from its grant and pension fund in various banks and financial institutions for a period of one year.
According to a public notice issued by the central bank, Rs 2.96 billion will be invested in Class ‘A’ commercial banks, Rs 555 million in national-level development banks and Rs 185 million in national-level finance companies.
The notice states that eligible institutions must have completed at least two years of operation, maintained the minimum capital adequacy ratio, kept their non-performing loan (NPL) ratio below 8 percent, and net NPL ratio under 3 percent.
Revised interest rate corridor system introduced
Additionally, their credit-to-deposit ratio must comply with the NRB’s prescribed limit, and they should have recorded a net profit in the previous fiscal year. Interested banks and financial institutions have been invited to apply with proposed interest rates for the investment.
