KATHMANDU, Dec 13: Nepal Rastra Bank (NRB) has decided to invest Rs 6.60 billion from the gratuity and pension fund in banks and financial institutions.
Issuing a public notice, the NRB has invited banks and financial institutions to submit applications, proposing the amount they seek along with the interest rate. As the investment will be for a period of one year, the NRB has asked applicants to submit their proposed interest rates by February 15.
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According to the notice, the NRB plans to invest Rs 5.28 billion in ‘A’ class commercial banks, Rs 990 million in ‘B’ class development banks, and Rs 330 million in ‘C’ class finance companies.
For availing these loans, eligible banks and financial institutions must have been in operation for at least two years, maintained the prescribed minimum total capital adequacy ratio, kept non-performing loans below eight percent of total loans and advances, and ensured that the net non-performing loan ratio does not exceed three percent.
Similarly, the central bank has announced plans to invest an additional Rs 1 billion from the Employee Security Fund in banks and financial institutions. The notice has invited proposals, including interest rates, for the one-year investment.
As per the notice, Rs 800 million will be invested in ‘A’ class commercial banks, Rs 150 million in ‘B’ class development banks, and Rs 50 million in finance companies. The NRB has requested interested institutions to submit applications along with the required documents and details by December 14.
