Eighty-six banks and finance institutions are still short of funds to
meet the minimum capital base set by the new monetary policy of Nepal
Rastra Bank.
As per the monetary policy, commercial banks must maintain a paid up capital of Rs 2 arba, national level development banks Rs 64 crore, finance companies Rs 20 crore and regional development banks should have a paid up of Rs 10 crore.
The BFIs have been instructed to meet the paid up capital target by the end of this fiscal year.
In view of the policy, 8 commercial banks, 40 development banks and 38 finance companies, which are short of the target, will have to either issue bonus shares or rights shares or go for merger.
The eight commercial banks which have yet to increase their paid-up capital to Rs 2 arba are: Bank of Kathmandu, Everest Bank, Kumari Bank, Laxmi Bank, Lumbini Bank, Nepal Credit and Commerce Bank, Siddhartha Bank and Standard Chartered Bank.
Looking at its current paid up capital, Standard Chartered will have to issue bonus shares at 7.31% ratio to meet the target. Similarly, the ratio for NCC is 26.5%, Siddhartha 19.04%, Kumari 19.81% and Lumbini 19.92%.
Earlier, the Nepal Rastra Bank had allowed BFIs to include reserve and other funds for meeting the set paid up capital. But the central bank has revised the policy to compel the promoters and investors to raise the minimum paid up capital to the required level independent of other funds.
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As per the monetary policy, commercial banks must maintain a paid up capital of Rs 2 arba, national level development banks Rs 64 crore, finance companies Rs 20 crore and regional development banks should have a paid up of Rs 10 crore.
The BFIs have been instructed to meet the paid up capital target by the end of this fiscal year.
In view of the policy, 8 commercial banks, 40 development banks and 38 finance companies, which are short of the target, will have to either issue bonus shares or rights shares or go for merger.
The eight commercial banks which have yet to increase their paid-up capital to Rs 2 arba are: Bank of Kathmandu, Everest Bank, Kumari Bank, Laxmi Bank, Lumbini Bank, Nepal Credit and Commerce Bank, Siddhartha Bank and Standard Chartered Bank.
Looking at its current paid up capital, Standard Chartered will have to issue bonus shares at 7.31% ratio to meet the target. Similarly, the ratio for NCC is 26.5%, Siddhartha 19.04%, Kumari 19.81% and Lumbini 19.92%.
Earlier, the Nepal Rastra Bank had allowed BFIs to include reserve and other funds for meeting the set paid up capital. But the central bank has revised the policy to compel the promoters and investors to raise the minimum paid up capital to the required level independent of other funds.
src sharesansar
