Commercial bank s’ branch expansion
drive has slowed down this fiscal year. Banks opened 47 new branches in
the first eight months this fiscal year, against 189 branches opened in
the same period a year ago, according to the Economic Survey 2012-13.
With this, the total number of bank branches has reached 1,472.
Bankers attributed the slowdown to bank s’ reluctance to open branches in rural areas even when the central bank has announced incentives for doing so.
Himalayan Bank CEO Ashoke Rana stressed on the need for revising the policy of the Nepal Rastra Bank (NRB). “Bankers have urged the central bank to consider population size rather than the geographic location to encourage commercial bank s open their branches.”
The population-to- bank branches ratio improved this year, but the growth rate in population per branch has declined. The survey showed there is one bank branch for every 17,998 Nepalis.
The Central Region has the most numbers of bank branches, but the Western Region is ahead when it comes to the ratio of population-to- bank branch. In the Western Region a bank branch serves 8,130 people. The Far-Western region has the least number of bank branches (111 branches), where one bank branch serves 22,996 people. According to the survey, deposit per person increased to Rs 34,546 as of mid-March 2013, while per person loan rose to Rs 26,741. Bankers say the growth in the deposit per person is possibly due to more small savers coming to commercial bank s.
Banks and financial institutions’ non-performing loans (NPL) has increased this fiscal, according to the survey. The NPL of commercial bank s stood at 3.2 percent, development bank s at 5.8 percent and finance companies at 14.1 percent.
Source: The Kathmandu Post
Bankers attributed the slowdown to bank s’ reluctance to open branches in rural areas even when the central bank has announced incentives for doing so.
Himalayan Bank CEO Ashoke Rana stressed on the need for revising the policy of the Nepal Rastra Bank (NRB). “Bankers have urged the central bank to consider population size rather than the geographic location to encourage commercial bank s open their branches.”
The population-to- bank branches ratio improved this year, but the growth rate in population per branch has declined. The survey showed there is one bank branch for every 17,998 Nepalis.
The Central Region has the most numbers of bank branches, but the Western Region is ahead when it comes to the ratio of population-to- bank branch. In the Western Region a bank branch serves 8,130 people. The Far-Western region has the least number of bank branches (111 branches), where one bank branch serves 22,996 people. According to the survey, deposit per person increased to Rs 34,546 as of mid-March 2013, while per person loan rose to Rs 26,741. Bankers say the growth in the deposit per person is possibly due to more small savers coming to commercial bank s.
Banks and financial institutions’ non-performing loans (NPL) has increased this fiscal, according to the survey. The NPL of commercial bank s stood at 3.2 percent, development bank s at 5.8 percent and finance companies at 14.1 percent.
Source: The Kathmandu Post
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