March 24, 2020 | Investopaper
Nepal Rastra Bank (NRB) has issued a notice regarding the investment to be made by the central bank on a fixed deposit of BFIs. The central bank has asked for banks and other financial institutions to include the interest rate on the bid application form. The maturity period will be of 1 year. NRB wants to deposit Rs. 195.12 crores from Baisakh 2, 2077 to Baisakh 1, 2078.
The BFIs are suggested to submit their sealed bids until 12:30 PM on Chaitra 14, 2076. The central bank will deposit the allocated amount into different BFIs.
|Financial Institutions||Amount (Rs. Crores)|
|B-class Development Banks||29.26|
|C-class Finance companies||9.75|
The financial institutions are required to fulfill the following conditions in order to submit the bid application.
- Completion of 2 years of operation
- Minimum Capital Adequacy should be met as directed by the central bank
- Non-Performing Loans (NPL) should be below 5 percent
- Net Liquid Assets should be 20 percent or more of the domestic deposits.
- Should have already issued the shares to the general public
- Real estate loans should not exceed the limit set by the central bank
- Should have positive operating profit in the previous fiscal year etc.