Nepal Rastra Bank (NRB) has announced plans to invest Rs 3.7 billion from its grant and pension fund in various banks and financial institutions for a one-year period.
According to a public notice issued by the central bank, Rs 2.96 billion will be allocated to Class ‘A’ commercial banks, Rs 555 million to national-level development banks, and Rs 185 million to national-level finance companies.
The notice specifies that eligible institutions must have operated for at least two years, maintained the minimum capital adequacy ratio, kept their non-performing loan (NPL) ratio below 8 percent, and their net NPL ratio under 3 percent.
Furthermore, institutions must comply with NRB’s prescribed credit-to-deposit ratio and must have recorded a net profit in the previous fiscal year. Interested banks and financial institutions have been invited to submit applications along with proposed interest rates for the investment.
