Commercial banks galore

Three new commercial banks are entering into the banking system in the next three months. Janata Bank, Megha Bank and Commerce and Trust Bank are in the last stage of their preparation. All of these banks had received the letter of intent (LoI) from Nepal Rasta Bank (NRB) in September.

"We'll start our operation from Jan. 20," said Madan Dahal, chairman of the Megha Bank. The bank will have its central office at Kantipath. "We'll start our operation in next 15-20 days," said Guru Neupane, chairman of Janata Bank. The bank has established its central office at the building of Garment Association of Nepal at New Baneshwor. On Wednesday, the bank completed agreement on software installation required for its operation. It is planning to appoint Bijaya Pant as its chief executive officer while Megha Bank is in search of its top executive.

Megha Bank will have an authorised capital of Rs. 4 billion and a paid-up capital of Rs. 2.35 billion. There are more than 1,250 promoters from 62 districts in this bank. A group led by Madan Kumar Dahal and Duman Thapa have promoted Megha Bank. "We've promoters who've invested Rs. one million in the bank," said Dahal. "We've made the bank inclusive."

The Janata Bank and Commerce and Trust Bank have a paid-up capital of Rs. 2 billion each, said NRB. Janata bank is being promoted by a group 898 promoters, led by Arun Valley Hydropower, Jeep Chhiring Lama.

Commerce and Trust Bank has been promoted by a group led by Durga Prasad Neupane and Shova Neupane. The promoter shareholders of these banks have already deposited 45 percent of the paid-up capital in the NRB as per the requirement. Similarly, three other banks, Civil Bank, Century Bank and State Bank of Nepal are waiting letter of intent from the central bank. "We're studying the documents of these banks," said an official of the central bank. These banks have already deposited 5 percent of the paid-up capital, as required, in process to receive the LoI.

A group led by Ichchha Raj Tamang of Civil Homes has promoted Civil Bank. Civil Bank is also planning to appoint Kishore Maharjan as its ceo. Maharjan war earlier with Sunrise Bank as its chief executive. The central bank, in the first week of August, had temporarily suspended the registration of new financial institutions including commercial banks, development banks and finance companies. However, it has not stopped giving licenses to those who have already applied for the license. All these six banks had applied for the license before the decision of the NRB. As of now, there are 26 commercial banks in the country.

Source:

ekantipur.com