Commerz and Trust Bank Nepal gets operating licence
The central bank has awarded Commerz and Trust Bank Nepal operating licence today to work as a class-A commercial bank. The bank that has Rs 3 billion authorised capital and Rs 2 billion paid up capital will be the 29th commercial bank in the country. "It has 360 promoters," said the youngest commercial bank. "The bank will float Rs 600 million of ordinary shares to the public," it said. According to the central bank directive, a commercial bank has to float shares equivalent to 30 per cent of the paid up capital to the public. The bank is soon going to start its transactions from its head office at Kamaladi, Kathmandu, it added. Currently, there are 28 commercial banks in operations, though the central bank has halted 'temporarily' to provide licence for the new commercial banks on the basis of paid up capital only. But still some other commercial banks like Century Commercial Bank are also in pipeline. Apart from these 29 commercial banks, the country has 79 development banks, 79 finance companies, 16 NRB-licensed Cooperatives that are undertaking limited banking transactions, 45 NRB-licensed NGOs that are undertaking micro finance transactions and 25 insurance companies, according to the central bank data. "Besides the establishment of new banks and financial institutions, the branch expansion of commercial banks also took place significantly in the last fiscal year," the central bank's annual report for the fiscal year 2009-10 said, adding that commercial bank branches increased by 214 to 966 in mid-July 2010 from 752 in mid-July 2009. "Similarly, branches of development banks and finance companies stood at 358 and 265 respectively."