KATHMANDU, July 26: Commercial banks will have to float nearly Rs 62 billion worth of debentures in the current fiscal year to meet the new requirement introduced by the Nepal Rastra Bank (NRB) through its monetary policy.
KATHMANDU, July 25: Nepal Rastra Bank (NRB) has announced a number of incentives and facilities for bank and financial institutions (BFIs) pursuing merger in a bid to promote consolidation in banking sector.
KATHMANDU, June 28: Nepal Rastra Bank (NRB) has sought commitments from the commercial banks for their readiness to go for 'big' merger and acquisition (M&A) in line with the announcement made in the budget speech for the upcoming fiscal year 2019/20.
KATHMANDU, May 11: Commercial banks have posted an impressive profit growth in the third quarter of the current fiscal year – FY2018/19 even when they have been grappling with shortage of lendable funds.
KATHMANDU, Feb 21: Nepal Rastra Bank (NRB) has issued a circular to bank and financial institutions (BFIs), enacting three provisions introduced through the mid-term review of Monetary Policy for Fiscal Year 2018/19.
In the circular issued to BFIs on Wednesday, the central bank directed BFIs to lower the maximum interest rates on loans floated under the general refinance fund to 8 percent.
KATHMANDU, Jan 22: Though there were expectations that interest rates on loans will fall at least by one percentage point from the third quarter, commercial banks have turned reluctant to lower their rates.
KATHMANDU, Dec 22: Commercial banks have started lowering interest rates on deposits after the Nepal Bankers Association (NBA) decided to cap deposit rates amid escalation of ‘interest rates war’ in recent days.
KATHMANDU, Dec 21: The banks have reached a gentleman agreement to fix the interest rate at 9.25 percent for the private fixed deposits, 6 percent for saving deposits and 8.5 percent for the institutional fixed deposits.
KATHMANDU, Dec 19: Interest rate war is escalating in the banking sector as bigger commercial banks have also joined the race by raising their fixed deposit rates. They have argued that such a move was necessary to prevent their deposits from flowing toward smaller banks which are offering higher interest rates.
GORKHA, Sept 14: The finding about the circulation of counterfeit currency notes in Gorkha has prompted the District Administration Office here to issue directives to district-based banks and financial institutions for preventive measures.
KATHMANDU, July 31: Nepal Bank Ltd (NBL), the government-owned bank, is struggling to sell its shares offered through follow-on public offering (FPO). The FPO, which closed on Sunday, has drawn only 54 percent subscription. As the stock price of the bank continues to plunge, general public have showed little interest over the offering that the bank launched to shore up its capital.
KATHMANDU, July 29: According to the latest data of the Nepal Rastra Bank (NRB), commercial banks have opened their branch offices in 631 local units so far, leaving 122 local units without their coverage.
KATHMANDU, July 15: The Department of Hydrology and Meteorology has predicted flash floods in the rivers of hilly districts due to incessant rains, urging people living near the river banks and surrounding areas to remain alert to such possibility.
KATHMANDU, July 12: The Nepal Rastra Bank (NRB) has introduced a provision in the Monetary Policy for Fiscal Year 2018/19 which allows banks to count loans against academic certificates, and higher education loans for students of marginalized and Dalit community, among others, as deprived sector lending.
KATHMANDU, July 4
Commercial banks have slowed down their loan investment as they prepare to close their accounts at the end of the current fiscal year. Deposit flow in the banking system, however, has increased amid rise in government spending.
Data compiled by Nepal Bankers Association (NBA) shows that 28 commercial banks extended Rs 17 billion in the past three weeks (between June 8 and June 29), while their deposit rose Rs 41 billion
in the same period. With this, total outstanding deposit and loans of these commercial banks has reached Rs 2,377 billion and Rs 2,080 billion as of as of June 29.
The recovery in deposit mobilization by commercial banks, who have been suffering from the shortage of lendable fund since long, comes in the wake of the rise in government expenditure at fiscal year-end. Increased government spending pumps more cash into the banking system.
According to the data of Financial Comptroller General Office, the government has so far spent 54.26 percent of the capital budget allocated for the current fiscal year. The government has spent Rs 181.88 billion out of Rs 335.18 billion allocated for development spending for FY2017/18. A lion's share of such fund was spent in the past two months.
Despite deposits growth, bank lending has slowed in recent days. Bankers say that the slowdown in lending at the fiscal year-end is a natural phenomenon in the banking industry. “Since most of the banks focus on recovery of their loans in the last month of the fiscal year, lending slows down during this time,” Bhuvan Dahal, CEO of Sanima Bank Ltd, said.
According to bankers, many investors also do not seek loans during this time when business firms close their book and accounts.
Banking industry has been seeing shortage of lendable fund in recent months due to mismatch in their deposits and loan growth. As banks expanded their lending investment sharply despite slow growth in deposit, the credit to core capital cum deposit (CCD) ratio of many banks have reached a saturation level.
Nepal Rastra Bank (NRB) requires banks to maintain CCD ratio of 80 percent. Many banks even saw their CCD ratio touching the upper limit, leading to a sharp rise in deposit rates. However, even the increment in deposit rates to over 13 percent failed to bring adequate deposits into the banking system. The skyrocketing interest rates prompted bankers to cap their saving rate at 7 percent and fixed deposit at 12 percent.
KATHMANDU, May 9: Though Nepal Rastra Bank (NRB) has paved the way for commercial banks for foreign currency borrowing, it seems that they will not be able to get resources from foreign banks anytime soon.
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KATHMANDU, March 22: Nepal Rastra Bank (NRB) has told commercial banks to come up within three days commitment to open branch offices in 116 local units where they have become reluctant to expand their presence so far.
KATHMANDU, Feb 22: Deposit collection of commercial banks in the first month of the third quarter has fallen, while loan disbursement is on the rise, a recent data of Nepal Bankers Association (NBA) shows.
SINDHULI, Feb 8: As most of the banks are limited to the district headquarters, earthquake victims living in rural parts of Sindhuli are almost deprived of banking service. As a result, they have to spend the whole day in vehicle to reach the headquarters even for minor transactions and mainly for receiving their reconstruction grants.
SINDHULI, Feb 7: As most of the banks are limited to the district headquarters, earthquake victims living in rural parts of Sindhuli are almost deprived of banking service. As a result, they have to spend the whole day in vehicle to reach the headquarters even for minor transactions and mainly for receiving their reconstruction grants.
KATHMANDU, Feb 7: Nine commercial banks have earned net profits of over Rs 1 billion in the first half of the current Fiscal Year 2017/18. Not only half-dozen new commercial banks have joined the one-billion profit earners' league, the net profits of most of the commercial banks have also gone up in the review period.
KATHMANDU, Jan 17: A committee formed by the Ministry of Finance (MoF) to recommend measures to address the shortage of lendable funds has concluded that the government does not need to offer any relief for the bank and financial institutions (BFIs) at this moment.
KATHMANDU, Jan 12: Minister of State for Finance, Udaya Shamsher Rana has said the government banks should be able to give the message to the people that they are capable of giving outstanding services and facilities.
KATHMANDU, Dec 28: Slow deposit growth has not restrained banks from ramping up their loan disbursements, indicating that lendable funds in the banking industry will soon dry up if the situation does not reverse.