February 24: Nepal Rastra Bank (NRB) is investing Rs 726.9 million on 'A' listed commercial banks, 'B' listed national level development banks and 'C' listed national level finance companies. The central bank is investing the funds accumulated in its various trusts as fixed deposits (FD) in the aforementioned banks and financial institutions (BFIs) from March 14 2017 to March 13 2018.
The central bank is investing Rs 581.5 million as FD in 'A' listed commercial bank. Similarly, the bank is investing Rs 109 million and Rs 36.3 million as FD in 'B' listed and 'C' listed BFIs respectively. The bank has applied 11 conditions to invest the fund in the listed BFIs.
The NRB has issued a notice in which the interested BFIs are asked to submitted a duly sealed price quotation form with the specified amount the BFIs willing to take as FD by February 28 1500 hours. The BFIs willing to take the FD must have come into operation for two years and should have minimum capital fund. The BFIs must fulfil the categories including the non-performing loan should be less than 5 per cent of total loan extension, net liquid assets should meet 20 per cent or more of the total domestic deposits will be eligible. According to NRB, the BFIs must have maintained the loan, domestic deposit and primary capital proportion as per the timely set standard by the central bank.
Similarly, the BFIs earning operating profit in last FY and having real estate investment not exceeding NRB set limit can also participate in the FD plan. However, BFIs leaded by Directors, CEO or Executive Directors against whom NRB has taken action will not get an opportunity to participate.
Similarly, BFIs completing minimum of 6 months from the Prompt Corrective Action taken by NRB can also apply for the deposit. NRB has also set a condition where the BFIs must have issued the shares allocated to general public. Likewise, the BFIs which are not announced problematic or completed 6 months since announced problem free are also allowed to apply for the fixed deposit of NRB.
