Nepal's banking industry leads the region in female representation but significant barriers remain in having more women in leadership roles: IFC Report

With 46 per cent female representation in its entry-level workforce, the banking industry in Nepal is ahead of other countries in South Asia in achieving gender parity. However, only 23 per cent of senior management roles are held by women, according to a new IFC report that examines gender diversity at six leading banks in Nepal.

The study—among the first of its kind in the region— identifies opportunities that can enable more women to advance to senior roles in the banking industry in South Asia.

This multi-country study, Women’s Advancement in Banking in Emerging South Asian Countries, focuses on commercial banks in Bangladesh, Nepal, and Sri Lanka, where women constitute 30 per cent of the banking sector’s workforce compared to the global average of 52 per cent, the report reads, underlining how several barriers—inequitable hiring, inadequate professional development, lack of fair evaluations, sociocultural constraints, and others—curtail women’s career growth prospects across the region.

“Diversity, equity, and inclusion are central to IFC’s work values," IFC country manager for Nepal, Bangladesh, and Bhutan Martin Holtmann said, adding that through nuanced, data-driven insights emerging from this new report, it is hoped to deepen the industry discourse around steps that need to be taken to improve the status of women in the banking workforce across South Asia.

In Nepal, women hold 42 per cent of all positions in surveyed commercial banks. Comparable figures for  Sri Lanka and Bangladesh are at 38 per cent and 18 per cent respectively. In senior management roles, women hold 23 per cent of executive positions in Nepali banks, compared to 20 per cent in Sri Lanka and 12 per cent in Bangladesh, the report adds.

Past studies have shown that commercial banks that have 15 per cent or more women in senior manager or higher roles, command up to 33 per cent higher return on equity than banks that do not. A growing body of evidence further links an increase in women’s representation in organizations to better performance on business metrics.

Accordingly, IFC's key findings and recommendations intended to help industry actors—executive managers in commercial banks, policymakers, industry bodies, and investors—direct their efforts to boost women’s representation in leadership in the banking industry.

The report recommends targeted efforts in four areas by banks and industry actors. These include establishing clear organisational commitments for gender diversity, the support system for women to reach leadership positions, policy changes to ensure workplace safety, and initiatives to support women's professional development and work-life balance.

“Nepal has a strong legal framework to promote women’s economic participation in the country. And these provisions are more comprehensive than other countries in South Asia,” said Holtmann. “While these progressive policies have allowed Nepal to be a leader in the region, more needs to be done to increase the number of women in leadership positions and to reach gender parity.”

IFC’s $56 million loan to Global IME Bank in February 2024 earmarked 25 per cent towards supporting women-owned small and medium enterprises (SMEs). Additionally, IFC investment in various banking and financial sector clients such as NMB Bank, Sanima Bank, and Siddhartha Bank  have been able to provide economic opportunities, and financial services to SMEs including those led by women.

One to Watch, NMB Bank, Laxmi Bank, and SDC join forces to support MSMEs

 One to Watch, with support from the Swiss Agency for Development and Cooperation (SDC), and in partnership with NMB Bank and Laxmi Bank, has announced the launch of Covid-19 Micro, Small and Medium Enterprises (MSME) Fund Nepal.

The fund seeks to support MSMEs that are struggling to cope with the challenges brought forth by Covid-19. It will do so by providing them with bridge financing in order to meet the working capital needs and technical assistance in the form of business development services to be able to retain employees, preserve business continuity, and build resilience. The fund is expected to support up to 100 MSMEs continue their businesses and help them retain up to 1000 jobs, according to a press note issued by the One to watch.

The fund will provide collateral-free loans to MSMEs that are evaluated to have the potential to bounce back based on a pre-determined set of criteria. It will pay interest on such loans for a period of up to 18 months. Additionally, a subset of such firms will also be provided with business development support that are tailored to meet the needs of beneficiary enterprises, it claimed.

“In unprecedented times like these, the Fund will leverage One to Watch’s expertise in investment and business development, its robust network of investors and entrepreneurs to identify and support high-impact SMEs,” managing partner of One to Watch Suman Joshi said, hoping that the initiative will be a ‘pilot’ that can be scaled with participation from more bank partners.

“Micro, Small and Medium Enterprises are the backbone of Nepal’s economy,” ambassador of Switzerland to Nepal Elisabeth von Capeller said, adding that the MSMEs employ a large share of the workforce and are drivers of innovation and new job creation. “Their rebound, therefore, will set the foundation for overall economic recovery.”

As a long standing development partner of Nepal, SDC is proud to be able to support this initiative together with private sector partners, she added.

“As a Retail and MSE focused bank, we are hopeful this collaboration will directly benefit credit-worthy smaller entrepreneurs, who require access to bank loans in order to sustain their businesses and livelihoods during an economy under stress,” Laxmi Bank chief executive officer Ajaya Bikram Shah said, adding that the MSMEs need special attention and support at this point in time and this sector will play a key role in helping the economy revive and regain momentum over the medium and long term.

“NMB Bank is focused on sustainable banking and MSMEs are key drivers for sustainable growth of the economy,” chief executive officer of NMB Bank Sunil KC said, adding that businesses across a range of economic sectors, especially MSMEs, are the most vulnerable and facing losses. “To support their revival plan, NMB, as a partner bank, is committed to providing collateral-free loans to those highly impacted by the current crisis.”

Financial closure of Seti Nadi Hydroelectric Project

 NMB Bank has successfully completed financial closure of Seti Nadi Hydroelectric Project.

The project – with an installed capacity of 25 MW – is being developed by Vision Lumbini Urja Company. The project – located at Machhapuchchhre Rural Municipality and Pokhara-Lekhnath Metropolitan City, Kaski, Gandaki Province – is estimated to cost Rs 5 billion, out of which Rs 3.50 billion has been managed by the consortium debt.

The financial closure agreement was signed today with lead financing from NMB Bank and Employees Provident Fund (EPF) and Agricultural Development Bank as member bank and financial institution, according to a press note issued by the NMB Bank. “Nepal Electricity Authority (NEA) has already signed power purchase agreement (PPA) with the company.”

NMB Bank now has a total number of 43 projects in its hydro portfolio, the press note adds.

IFC’s $25 million support to NMB Bank to boost green financing and access to credit

The International Finance Corporation (IFC) – a member of the World Bank Group – is providing a $25 million loan to NMB Bank to boost financing for green projects and small and medium enterprises (SMEs).
The investment is expected to help expand NMB’s SME portfolio to over $1 billion by 2025, creating up to 50,000 jobs over the next five years, according to a press note issued by IFC. SMEs have been a key engine of growth in Nepal, contributing 20 per cent of GDP and creating over 60 per cent of jobs in the country. The project is expected to see a doubling in the amount of loans available for SMEs from NMB, creating more jobs in the economy.
The loan marks IFC’s first climate focused lending to a financial institution in Nepal, incorporating the internationally recognised green loan principles. Overall the support for green financing, excluding hydro financing, is expected to contribute towards reducing CO2 emissions in the country. IFC expects the project will also build up NMB’s capacity to identify and evaluate green lending opportunities and increase access to green financing in Nepal over the next five years – trebling the amount of loans available for ‘going green’.
“NMB is focused on financing of sustainable projects in the real sector in alignment with the Government of Nepal's growth plans,” NMB Bank chief executive officer Sunil KC said, adding that the bank’s investments comprise of a balanced mix of real sector exposures which includes hydro power, agriculture, microfinance, infrastructure, tourism, SMEs and green projects that are key drivers of economic growth and sustainability. “In the current Covid -19 scenario, the new investment from IFC adds considerable value in helping us significantly increase our current portfolio and widen the scope for investment in sustainable and green projects.”
Additionally, access to climate finance is limited in Nepal, which is expected to face a further setback due to the reduction in the flow of credit, in the wake of the impacts of the Covid-19 pandemic.
“This investment is supporting SMEs and Nepal’s sustainable development during this economic downtown,” IFC country manager for Nepal, Bangladesh and Bhutan Wendy Werner said, adding that IFC believes in the tremendous opportunity for green growth through mobilising the private sector. “The project will help boost access to finance for small and medium sized enterprises, which have been highly affected by the impacts of the pandemic.”
SMEs will contribute to Nepal’s recovery in the aftermath of the pandemic.
Based on the government commitment to the Paris Climate Agreement, IFC estimates the country’s has climate-smart investment opportunities of $46 billion by 2030. IFC’s own Climate Implementation Plan of April 2016 has an overall target of scaling up climate investments to reach 28 per cent of IFC’s annual financing and catalysing $13 billion in private sector capital annually by 2020. “IFC has invested in NMB since 2015 through a Global Trade Finance Programme (GTFP) facility and in 2018, IFC extended a working capital solution (WCS) loan.”
Since 1956, IFC has invested over $150 million in Nepal in the country’s priority sectors. By the end of June 2020, IFC’s committed portfolio in Nepal is expected to be approximately $500 million – a significant increase from previous year – where it stood at $75 million.

CDC Group establishes presence in Nepal, invest more

CDC Group Plc – the UK’s impact investor for Africa and South Asia -- welcomes Rabi Rayamajhi as country representative for Nepal.
Rabi joins CDC from the Department for International Development (DfID) Nepal, where he was a private sector development advisor for four years and led projects in the financial and SME sectors. Prior to his role at DfID, Rabi used to provide advisory support to the Investment Board of Nepal (IBN) in promoting foreign investment and executing large-scale infrastructure projects in waste management, hydropower and cement sectors. He started his career at Standard Chartered Bank and has an MBA qualification from Singapore Management University.
According to a press note issued by the CDC, Rabi will be based at CDC’s representative office in Kathmandu, where he will work closely with CDC teams across Asia.
Over the last 18 months, CDC has made long term commitments to three businesses that will help economically support thousands of Nepalis through jobs, products and services. “We made a direct investment of a $15 million in NMB Bank, one of Nepal’s leading commercial banks,” the press note reads, adding that it was followed by a $12 million investment into a leading internet provider WorldLink, and a subsequent $21.9 million investment into the Upper Trishuli-1 Hydroelectric Project, which will supply clean and reliable electricity to millions of Nepalis.
In 2019 – along with a consortium of lenders – CDC signed a $453 million debt financing package to help build a hydro-electric plant in the Upper Trishuli region of central Nepal. Upper Trishuli is expected to help create over 20,000 jobs in the Nepali economy across multiple sectors. The hydro-electric plant will also increase Nepal’s electricity supply by one-third from today’s levels and provide clean, reliable power to millions of people.
For CDC, the Upper Trishuli commitment in 2019 swiftly followed a $15 million three-year loan to NMB Bank, one of the country’s leading commercial banks. In the same year we invested $12 million of equity in to the country’s largest private sector internet service provider, WorldLink.
Rabi will help accelerate our commitment to invest more capital in Nepal, and support local businesses to advance their commercial success as they work to adopt internationally recognised environmental, social and governance standards. He joins CDC at a time of uncertainty as the pandemic is challenging the lives of people, communities and businesses across Nepal, the press note further reads, adding that as a committed long-term provider of flexible capital to the private sector, CDC has never been more important. “With a mandate that includes providing counter-cyclical financing during financial crises, CDC is playing a role in protecting jobs and businesses.”
The firm’s response to the Covid-19 pandemic has three areas of focus: ‘preserve’, ‘strengthen’ and ‘rebuild’. CDC’s goal is to support the economic stability that will improve the lives of millions of people in Africa and South Asia, read more on its response framework here.
Head of Asia at CDC Srini Nagarajan welcomed Rabi to CDC as the Country Representative in Nepal. “His expertise in private sector development and extensive knowledge of the investment environment in Nepal will boost CDC’s priority of providing increased long-term capital support to businesses and bolstering sector growth in the country,” Nagarajan said, adding that Rabi will be instrumental in strengthening our partnership with businesses and broadening CDC presence in Nepal, as it works to enhance corporate governance, develop environmental and social strategies, promoting skills and job creation that power Nepal’s economy.
Likewise, the newly appointed country representative for Nepal Rabi Rayamajhi, said that he is proud to be representing CDC in Nepal and supporting the execution of the organisation’s mission to bring about lasting development impact and widespread economic growth in Nepal. “In only a short period of time, CDC’s commitment to Nepal’s finance and infrastructure sector has resulted in improved access and connectivity throughout the country,” he said, adding that he is keen to get to work on developing local partnerships that will continue to boost business growth and improve the lives of millions of people.
Welcoming a stronger presence for CDC in Nepal acting UK ambassador and country director for DfID, Nepal Lisa Honan said that the UK continues is committed to playing a strong role in working with the government of Nepal and all development stakeholders to ensure Nepal is ‘open for business’. “While the current Covid crisis has adversely affected Nepal’s economy, there are also opportunities for investments to help ensure Nepal’s recovery is resilient to future shocks and promotes green growth,” Honan added.

More than a dozen banks pledge to undergo merger

Some 16 banks have pledged to undergo merger and acquisition (M&A) in the near future as asked by the central bank. However, they seeking tax incentives.
Century Commercial Bank, Citizens Bank International, Civil Bank, Global IME Bank, Himalayan Bank, Kumari Bank, Laxmi Bank, Machhapuchchhre Bank, Mega Bank, NCC Bank, NIC Asia Bank, Nepal Investment Bank, Nepal SBI Bank, NMB Bank, Sanima Bank and Sunrise Bank have informed the central bank that they are ready to either go for merger or acquire other banks, whereas Janata Bank and Global IME Bank have already announced their merger plans.
The central bank has – before the Monetary Policy for the next fiscal year 2019-20 – asked the banks to opt for either merger or the acquisition, on the basis of the government’s fiscal policy. The central bank had also sought commitments from all the 28 commercial banks – primarily intending to bring down the number of banks, raise their capital and increasing their lending capacity – for either merger or acquisition before the Monetary Policy is announced in mid-July.
Earlier, 4 years ago in the fiscal year 2015-16, the central bank had – through the Monetary Policy – compelled banks to raise minimum paid-up capital by four times to Rs 8 billion from Rs 2 billion.
The bankers are though ready to go for merger or acquisition; they have asked the government to reduce income tax levied on banks by at least five percentage points for a period of five years for those banks who choose to merge with others. Currently, the government imposes 30 per cent income tax in the banking sector.

NMB Bank signs MoU to support returnee migrant

NMB Bank has signed a tripartite agreement with National Youth Council and Returnee Migrant Nepal with the objective to promote youth entrepreneurship and to provide subsidised loan to returnee migrants in predominant sectors including agriculture, tourism, forestry, medicinal herbs, minerals, hydro and science and technology.
The three parties shall work to support in implementation of the Finance Ministry – Government of Nepal’s initiative to provide interest subsidy loan to promote entrepreneurship amongst the youth in the productive sector thereby opening avenues to generate employment, self-employment opportunities amongst the youth.
The terms of the MoU dictate that, in accordance with the Integrated Working Procedure for Subsidised Credit 2018, subsidised loan upto maximum of Rs 10 lakhs shall be availed to eligible returnee migrants in coordination of Nepal Youth Council upon recommendation of Returnee Migrant Nepal.
The bank shall also avail loans in sectors apart from the ones listed under the Subsidised Loan scheme. Additionally, the NMB Bank shall also establish an Advisory Service Desk to provide advisory services to prospective customers, support in enhancing technical skills, introduce savings and loan products specifically designed for returnee migrants.
All three signatory institutions believe that this initiative will encourage migrant workers abroad to return home and utilize the skills acquired to generate employment opportunities and support in building a prosperous Nepal.

NMB signs PPA to launch unique solar roof-top model

NMB Bank Ltd (NMB) today signed a private power purchase agreement (PPA) with Saral Urja Nepal Private Ltd (SUN) for a 50-kW grid-tie solar roof-top with net metering. The grid-tie solar roof-top will be placed in NMB Bank’s head office in Babarmahal, Kathmandu.
Under the PPA, SUN will install, own and operate the solar roof-top for 15 years. NMB will purchase all the electricity generated from the solar roof-top at a price lower than their retail grid electricity tariff with no up-front investment.
"This initiative reaffirms NMB’s commitment to expanding and financing renewable energy in Nepal," chief executive of the NMB Bank Sunil KC said after signing the agreement. "Not only will part of our own electricity requirements be met through solar, we will also use this to expand financing of solar roof-top solutions across Nepal."
Over the 20 years life of NMB’s solar roof-top system, NMB will pay a lower price per unit from solar than from the grid. The 50-kW will also help to avoid 2 million kWh imports and reduce imports by Rs 20 million over the project’s life.
“We welcome the decision of Nepal Electricity Authority to allow net metering, a system that allows users to connect their solar system to the grid and export the excess electricity to the grid," managing director of Saral Urja Nepal Bishal Thapa said, adding that net metering has opened up tremendous opportunities for Nepal to diversity its generation base, reduce electricity costs to consumer, avoid imports and help build a more reliable electricity grid."
The agreement between NMB Bank and SUN is also intended to expand financing of such solar roof-top systems across Nepal. "The system at NMB Bank is a unique model, where customers can get a solar roof-top system with no upfront investment and pay a rate for solar electricity that is lower than NEA’s tariff," according to chief executive of SUN Aashish Chalise. "We believe that through this system we can achieve 500-MW of solar roof-top within the next 5 years."
NMB and SUN are working towards a financing facility that will enable SUN to offer the solar energy services across Nepal.
“Following this project, we expect to partner with SUN in launching a financing facility to expand the application of solar roof-top across Nepal that will allow customers to save money, diversify Nepal’s generation, reduces electricity imports and create many new jobs,” said chief of Energy & Development Organisation Dinesh Dulal.

Sebon fines four mutual fund managers

The capital market regulator has fined four mutual fund managers for parking their money in bank deposits higher than the prescribed limit, violating investment-related rules.
The Securities Board of Nepal (Sebon) move is likely to push mutual funds toward volatile stock market due to the lack of other investment scopes.
Though mutual funds are barred from depositing more than 10 per cent of total assets of their schemes in banks, the Sebon has used it discretion to define bank deposits as fixed deposits to fine them for breaching investment-related provision in the regulation. "But if the merchant bankers put the same fund in the call deposits, it is not counted as bank deposit, according to the regulator.
The Sebon – issuing a press note today – confirmed that it had fined NMB Capital, Laxmi Capital Market and CBIL Capital Market Rs 35,000 each for investing funds that are supposed to manage in bank deposits, breaching the allowed limit. Likewise, NIC Capital has been fined Rs 25,000 for breaching investment limit on bank deposit.
According to the Sebon, Citizens Mutual Fund-1 managed by CIBL Capital, NMB Sulav Investment Fund-1 and NMB Hybrid Fund L-1 managed by NMB Capital, Laxmi Equity Fund and Laxmi Value Fund-1 by Laxmi Capital and NIC Asia Growth Fund by NIC Asia Capital breached the rule on limitation of the fund.
This is the first punitive action against mutual fund scheme managers, the Sebon press note reads, adding that the regulator expects the action will help strengthen compliance among securities businesspersons and develop healthy market.
Earlier five months ago, the Sebon has sought clarifications from them over the breach of limit on investment on bank deposits from their mutual fund schemes. The fund managers – in their clarifications to Sebon in August – said that their share of fixed deposit investment crossed 10 per cent due to the fall in their value of assets.
The Nepal Merchant Bankers' Association, however, claimed that that the regulatory body should revise its regulation that bars fund managers from making their judgment on investments. The association also claimed that the regulation was introduced some eight years ago and now it's high time to review those provisions. 

IFC may extend $15m financing to Nepal’s Global IME Bank

The International Finance Corporation (IFC) – a member of the World Bank Group – has proposed to extend a $15 million financing facility to Global IME Bank to support the lender’s programme for small and medium sized enterprises, it said.
The bank is ranked as fifth among commercial banks in Nepal based on its total asset base of Rs 124 billion ($1,151 million) and loan portfolio of Rs 89.7 billion ($833 million) as of April 13, 2018. The bank will prioritise lending to enterprises in tourism, agriculture, micro finance and small and cottage industry sectors. SME financing will cover both daily business operations and capital expenditure. "This project is part of a concerted effort by IFC in the Nepali financial sector to enable local banks to access long term US dollar resources,” as per the disclosure.
Global IME Bank has a network of 129 branches across the country. The Nepal Stock Exchange (Nepse)-listed bank is 51.2 per cent owned by the promoter group while the remaining is held by the public. IME Group, chaired by Chandra Prasad Dhakal, is engaged in a number of sectors including banking and insurance, automobiles, energy, logistics, IT, infrastructure and tourism.
IFC has also proposed a $15 million investment in NMB Bank to support its lending activities in the SME space. IFC has been present in Nepal started since 1956 and is among a handful of organisations financing sectors like agribusiness, transportation and trade finance. In 2015, IFC financed $7 million equity in Business Oxygen (BO2) – a private equity fund in Nepal – followed by a $7.3 million add on investment in the fund.

ICIMOD, NMB Bank join hands for mountain communities in Nepal

The International Centre for Integrated Mountain Development (ICIMOD) and NMB Bank, signed a Memorandum of Understanding (MoU) to provide the mountain communities in Nepal better access to finance today.
NMB and ICIMOD hope to build on each other's network and strengths to foster cooperation and contribute to sustainable mountain and socio-economic development in Nepal through knowledge intervention and business promotion, according to a statement issued by ICIMOD.
The partnership focuses on achieving and delivering the shared values and goals of the organisations. The three broad focus areas of the collaboration are access to finance, impact investment, and corporate social responsibility (CSR) activities for the benefit of mountain communities.
"ICIMOD is increasingly stepping up to work closely with private sector organisations in Nepal and other regional member countries of the Hindu Kush Himalayan region," said director general of ICIMOD David Molden, speaking after signing the MoU.
"We see that there is synergy in businesses and would like to engage in a meaningful partnership with NMB Bank to enhance our impact on mountain communities," he added.
ICIMOD recognises NMB as a strategic private sector partner that can provide communities the much-needed access to finance for sustainable livelihoods and the success of interventions in Nepal.
For NMB Bank, ICIMOD is a strategic knowledge and technical partner to link to social and environmental activities as well as activities related to business links and business opportunities in Nepal.
NMB is a financial institution and a member of the Global Alliance for Banking on Values. "NMB believes that investing in real economies is pertinent to the long-term economic sustainability of Nepal,"chief executive of NMB Bank Sunil KC said, adding that the collaboration with ICIMOD is in line with the bank's faith in value-based banking. "We are pleased to add value to ongoing ICIMOD activities by providing mountain communities better access to finance. Our partnership with ICIMOD will provide economic and social benefits to mountain people and help increase their income."
“For ICIMOD, working with the private sector provides greater development impact, opportunities to upscale and longer-term sustainability,” director of Strategic Cooperation, ICIMOD Basanta Shrestha said, stressing that ICIMOD, through its partnership with NMB, would like to 'leverage knowledge resources from its research, demonstration, and pilots for business development opportunities and promote social impact investments for the benefit of mountain communities.'
In August this year, Department of Irrigation, the Government of Australia, and ICIMOD, in partnership with the Alternative Energy Promotion Centre (AEPC), launched solar-powered irrigation pumps (SPIPs) in Saptari. The SPIP project is an ICIMOD pilot on clean, reliable, and affordable technology for year-round irrigation.
NMB Bank offered a special loan package to farmers, which allowed them to purchase SPIPs. As part of its CSR activities, NMB also handed over varieties of seeds to flood victims in Saptari.

Some 286 branchless banking points to open in underserved regions

Seven banks are opening 173 branchless banking points in 14 districts affected by the devastating earthquake of April 25.
Seven commercial banks and Sakchyam Access to Finance Program signed an agreement today to open 173 Branchless Banking (BLB) outlets in 14 districts affected most severely by the earthquake. "As part of the partnership, Citizens Bank, Global IME Bank, Nepal Investment Bank, NMB Bank, Rastriya Banijya Bank, Sanima Bank and Siddhartha Bank have already setup 55 branchless banking points with the remaining to be established by the end of November," a statement read.
The launch of these crucial financial services comes at a point when the financial sector is under pressure to provide quick access to financial services in far-flung areas of the 14 districts.
The central bank is moving aggressively to expand branchless banking outlets throughout the country in line with its monetary policy, Nepal Rastra Bank governor Dr Chiranjibi Nepal said, addressing the signing ceremony. "The central bank is committed to working with banks and the government to provide a sustainable basis for expanding its goals of financial inclusion and expediting government to people (G2P) payments in an efficient manner," he added.
"The establishment of delivery points and making them sustainable holds key in achieving financial inclusion," joint secretary at the Finance Ministry Suresh Acharya. "The government intends to establish the right incentives for banks working with the central bank to rollout G2P and other cash transfer programmes, through networks such as the ones created by banks with Sakchyam support," he added.
Likewise, director general at the Department of Civil Registration Basanta Raj Gautam said that the government was finalising pricing structure for its implementation. "We have had presentations from Sakchyam on the basis for pricing and been looking at international as well as our own experiences to date," he said, adding that government would work closely with the banks to develop a sustainable model for delivery of G2P services.
Likewsie, reiterating the Government of UK's commitment to accelerate the deepening of access to financial services in rural Nepal, Economic Development Team Leader at DfID Gareth Weir, said that the active deliberation will enable retail finance and G2P payments through the banking sector.
On the occasion, Sakchyam Team Leader Baljit Vohra briefed about Sakchyam's achievements. "Sakchyam is supporting opening of 286 branchless banking outlets in mid and far-west and in quake-affected districts," he said, adding that the transformational BLB strategy includes the use of Point of Sale (PoS) machines, mobile phones and tablets enabled through agents, extensions counter and physical branches to rollout micro-banking products, G2P payments and value chain financing models that will further deepen financial-service penetration for households and enterprises in the remotest areas of the country.

Share market continues rejoicing election results, hoping for a stable democrat government

The first day of the share market for this week continued its winning streak of the last day of last week as it gained 22.45 points to close the market at 656.75 points today.

The day saw some 476.14 million turnover as the shareholders of Prime Life Insurance, National Hydropowe, NMB Bank, Butwal Hydropower and NLIC gained, whereas Lumbini Bank, Jyoti Bikas Bank, United Finance, ILFC and Nepal Investment bank shareholders lost, the most.

Hydropower sub-group gained the most followed by insurance and banking sub-groups but the others sub-group – due to loss of Nepal Telecom – lost.

The investors have rejoiced the successful CA elections and the results that made a liberal market economy propagator Nepali Congress a largest party.

The results have also indicated a stable government and timely drafting of Constitution.

Standard Chartered Bank cheapest, Agriculture Development Bank most expensive according to base rate of commercial banks

The commercial banks have published the base rate for the first time, after the central bank had asked them to calculate the base rate — as reference rate — for lending on the basis of five indicators; cost of fund, Cash Reserve Ratio, Statutory Liquidity Ratio, operational cost, and Return on Assets, to make the interest rate regime transparent for borrowers.

The base rate is expected to ensure the stability of the monetary market in the current volatile situation as interest rates are fluctuating and could hit the sustainability and long-term stability of the financial system, according to the central bank.

Though Nepal Ratra Bank had asked the banks to implement the base rate before Tihar, bankers wanted some more time for calculation and study on its sustainability and started from mid-January. 

Banks — Base rate
Standard Chartered Bank Nepal — 6.80 per cent
Rastriya Banijya Bank — 6.81 per cent
Everest Bank — 7.04 per cent

Nabil Bank — 7.26 per cent
Nepal Investment Bank — 7.8 per cent
Himalayan Bank — 8.23 per cent

Bank of Kathmandu — 8.29 per cent

Nepal SBI Bank — 8.76 per cent

Citizens Bank International — 8.92 per cent
Nepal Bank — 9.19

NB Bank — 9.26 per cent

NMB Bank — 9.32 per cent

Sunrise Bank — 9.5 per cent

Global IME Bank — 9.58 per cent
NIC Bank — 9.58 per cent
Laxmi Bank — 9.65 per cent
Mega Bank — 8.75 per cent

Bank of Asia Nepal — 9.79 per cent

NCC Bank — 9.81 per cent
Kumari Bank — 9.92 per cent
Lumbini Bank — 9.94 per cent
Commerz and Trust Bank — 10.14 per cent
Prime Commercial Bank — 10.19 per cent
Kist Bank — 10.26 per cent
Janata Bank Nepal — 10.29 per cent

Siddhartha Bank — 10.30 per cent

Machhapuchchhre Bank — 10.34 per cent

Sanima Bank — 10.36 per cent

Grand Bank — 10.53 per cent
Civil Bank — 10.91 per cent
Century Commercial Bank — 11.07 per cent

Agriculture Development Bank — 12.35 per cent

Siddhartha to launch growth scheme Mutual Fund soon

Siddhartha Mutual Fund will be launching Siddhartha Growth Scheme I before the Dashain vacations, provided the regulator approves its prospectus soon enough.

Siddhartha Capital along with Growmore Merchant Banker will be managing the issue of the mutual fund scheme that will launch mutual fund units worth Rs 400 million with a five-year tenure.

“We submitted the prospectus for the scheme to Securities Board of Nepal (Sebon) today, and hopefully, we will be granted approval soon,” said chief executive of Siddhartha Capital Dhurba Timilsina.

Siddhartha Capital –– a merchant banking subsidiary of Siddhartha Bank –– has been awarded a licence to work as the fund manager and depository for Siddhartha Mutual Fund by Sebon. Siddhartha Bank will work as the sponsor of the first mutual fund to operate after the Mutual Fund Regulation 2067 came into existence.

The scheme will be primarily priced at Rs 10 per unit and, according to the Mutual Fund Guidelines 2069, a single investor has to buy a minimum of 100 units. The units will later be listed at the stock exchange for secondary trading.

“This close-ended scheme will contain equities in its portfolio, but later we are planning to introduce other schemes that will contain other instruments such as bonds and debentures, but it will depend on the reception of this one,” added Timilsina.

Mutual funds are considered the best tool for investors who have minimum knowledge about shares or have a low-risk appetite. Mutual funds pool money from investors and invest in diversified scrips providing cost-effective, yet, diversified portfolio to investors at a minimum price. Since experts manage the fund's investment, even a layperson who knows nothing about finance can earn substantial returns.

Sebon has already approved Nabil Mutual Fund and NMB Mutual Fund promoted by Nabil Investment Banking and NMB Capital, respectively. But they are yet to receive the licence for fund manager and depository.

Likewise, the tenure of the existing NIDC Capital Markets’ mutual fund will be up by mid-October.

NMB Mutual Fund in offing

Securities Board of Nepal (Sebon) — the capital market regulator — awarded the licence to operate Mutual Fund to NMB Bank.
"The bank is also preparing to apply for the supervisory for the mutual fund," said chief executive of NMB Bank Upendra Poudel. The NMB Bank's subsidiary NMB Capital is also planning to apply for the licence for the Fund Manager and Depository soon.
"The bank is also preparing to bring the Mutual Fund in a month after it gets all the necessary permission from the capital market regulator," he said, adding that it is offering different schemes ranging from Rs 500 million to Rs 1 billion targetting small and big investors.
The NMB Capital is also focusing on human resources and infrastructure development to bring the Mutual Fund that is expected to bring some confidence in investors as their funds will be managed by the professionals and will be safer than they individually invest.
There are some other banks like Nabil Bank, Siddhartha Bank and Laxmi Bank that are planning to launch Mutual Funds soon.