The Deposit and Credit Guarantee Fund (DCGF) is preparing to invest Rs 4.66 billion currently held across various banks, with eligible commercial banks able to apply for the investment by November 10.
According to the DCGF, only commercial banks licensed by Nepal Rastra Bank (NRB) will be eligible, and several financial benchmarks must be met to qualify.
To access the funds, a bank must have completed at least five years of operation and maintained continuous profits for the past five years. Banks must also comply with NRB’s capital adequacy requirements, maintain non-performing loans (NPLs) below 8 percent of total loans, and ensure a minimum net liquid asset ratio of 20 percent relative to local deposits.
Additional requirements include adherence to NRB’s credit-to-deposit and capital adequacy ratios, and banks must not have received penalties—other than warnings—under NRB regulations within the past six months. If a bank was previously placed under prompt corrective action, it must have been released for at least three months.
The DCGF also mandates that banks must not be classified as problematic under Section 86 of the NRB Act, 2058. If previously classified as problematic, at least six months must have passed since their clearance. Private-sector banks must also have their publicly issued shares listed on NEPSE.
The DCGF holds full discretion on whether to invest the announced amount. Banks that meet the criteria need to submit a sealed proposal along with a self-declaration confirming compliance. Financial indicators included in the proposal must be supported by quarterly reports, or if monthly reports are used, they must be certified by the bank’s internal auditor.
