3 new banks get Letter of Intent

11, Sep 2009
Nepal Rastra Bank has given three proposed commercial banks letter of intent (LoI) to open. These banks are Nepal Business Bank, People's Bank and Commerce and Trust Bank. Three other banks awaiting letter of intent are Century Bank Limited, State Bank of Nepal and Civil Bank said the central bank. Nepal Business Bank will have an authorized capital of Rs. 4 billion and a paid-up capital of Rs. 2.33 billion. There are 1,228 promoters in this bank. As per the proposed investment, the People's Bank and Commerce and Trust Bank will have a paid-up capital of Rs. 2 billion each, said NRB.
NRB director Laxmi Prapanna Niraula said that People's Bank and Commerce and Trust Bank have already deposited 50 percent of the paid-up capital in the NRB as per the requirement of the existing rules to get a letter of intent. "The Nepal Business Bank is also in the process of depositing the money within a few days," he said. The latter three banks have already deposited 5 percent of the paid-up capital which is required to go in the process to receive the LoI, according to him. Various business groups have invested in these upcoming banks. A group led by Madan Kumar Dahal and Duman Thapa have promoted Nepal Business Bank. Another group led by Arun Valley Hydropower, Jeep Chhiring Lama and others have put money in People's Bank. The bank has 898 promoters.
Commerce and Trust Bank has been promoted by a group led by Durga Prasad Neupane and Shova Neupane. There are 363 promoters in this bank. A group led by Bagmati Investment has promoted Century Bank in which there are 618 promoters. Likewise, a group led by GBSS Impex, Amit Kumar Begani and others has promoted the State Bank. A group led by Ichchha Raj Tamang of Civil Homes has promoted Civil Bank. The number of promoters of this bank is not known.
Although NRB has stopped giving license to new banks and other financial institutions, it has not stopped giving licenses to those who have already gone through the process of receiving the license. There are 26 commercial banks, 61 development banks, 78 finance companies, 13 micro-finance banks, 16 (NRB-licensed) cooperatives and 45 (NRB-licensed) non-government organizations under operation, according to NRB.
Source: ekantipur.com