Banks flock to Kavre

PANAUTI (KAVRE), Aug 18 - Kavrepalanchok is fast turning into a district of banks with 36 banks having their offices here. After Kathmandu, Kavre has the highest number of banks and financial institutions.
The district hosts the central offices of eight development banks. Among them are Annapurna Development Bank, Pashupati Development Bank, Infrastructure Development Bank, Diyalo Bikas Bank and Country Development Bank.
Likewise, 10 commercial banks maintain branches in Kavre with around a dozen more commercial and development banks planning to do so.
Nepal Rastra Bank regulations require prospective national-level development banks to have a paid-up capital of Rs. 640 million. However, development banks with limited capital can be established outside Kathmandu, reason for eight development banks already being established in Kavre.
Similarly, banks and financial institutions have to open one branch outside Kathmandu for every branch they open in the capital as per the central bank's regulations. And Kavre has become an ideal location for commercial banks.
According to Kumar Thapa, Kavre branch chief of Nepal Investment Bank, proximity to Kathmandu and the planned opening of the BP Highway in the near future are the reasons for the mushrooming of banks in Kavre.
The proliferation of banks and financial institutions has made banking services easier and affordable for consumers. Stiff competition among the banks has increased the interest rates on deposits. "Earlier, one had to go to the banks to get loans, now they are coming to us," said Kanchan Bade, a petrol pump owner. With Kavre as a base, banks can do business in Sindhupalchok, Ramechhap, Dolkha, Sindhuli and Bhaktapur districts.
"One can open a development bank with limited capital and can cover 10 districts," said Ram Sharan Neupane, managing director of Diyalo Bikas Bank. "That is why we've opened the bank."
According to Neupane, the banks in Kavre do daily transaction worth Rs. 150 to Rs. 200 million.