Nepal Rastra Bank to Invest NPR 9.35 Billion in Fixed Deposits with Financial Institutions

Kathmandu. Nepal Rastra Bank (NRB) is set to invest 9.35 billion Nepali Rupees. The central bank plans to invest this amount, currently held in the Provident Fund and Pension Fund, for a period of one year.

NRB has informed that it intends to place this amount as fixed deposits in licensed banks and financial institutions. Interested banks and financial institutions will be invited to submit applications.

Banks can apply between 10 AM and 12 PM on Falgun 10, 2082 BS. NRB has allocated 7.48 billion Rupees for commercial banks, 1.4025 billion Rupees for development banks, and 467.5 million Rupees for national-level finance companies.

A condition has been set that banks and financial institutions seeking such deposits must not have a Non-Performing Loan (NPL) ratio exceeding 8 percent of their total deposit investments. Other conditions include having completed at least two years since commencing operations, maintaining the minimum capital fund specified by the bank, maintaining the Net Liquid Asset Ratio as determined by the bank from time to time, having the Credit-Deposit Ratio within the limits set by the bank from time to time, being in net profit according to the profit and loss statement of the immediately preceding fiscal year, and if under prompt corrective action, having completed at least 6 months since the action was lifted.

NRB has also stipulated conditions such as not being subject to action under Section 86(b) of the Nepal Rastra Bank Act, 2058, and if declared problematic, having completed 6 months since the declaration was lifted, and having issued the shares allocated for the general public. -News Agency Nepal