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Nepal Rastra Bank opens licence for Infrastructure Development Bank

Nepal Rastra Bank opens licence for Infrastructure Development Bank

KHATMANDU: Nepal Rastra Bank (NRB) has opened the licence for Infrastructure Development Bank, which will have paid-up capital of Rs 20 billion.

By issuing the ‘Licensing Policy for Infrastructure Development Bank 2017’ today, NRB has called the interested parties to apply for opening the mega bank in the country.

According to NRB officials, if the bank is established under foreign investment, the promoter should invest minimum of 20 per cent to maximum of 85 per cent of its total paid-up capital. In this model, 15 per cent share should be provided to public. According to the newly issued policy, if the bank is to be established with 50 per cent of total paid-up capital through foreign investment, the public will get 30 per cent share.

Likewise, if the bank is established entirely on domestic investment, promoter group should invest 51 per cent of its total paid-up capital and 30 per cent share should be floated to the public. Moreover, 0.2 per cent share should be given to the staffers of the bank.

Meanwhile, according to the provision of the policy, no one can invest in the promoter share of the bank by taking loan from any financial institution. The central bank has opened the way for investment to non-resident Nepalis (NRNs) through remittance.

The government has announced repeatedly through budget that it would promote establishing such a bank to invest on mega infrastructure projects. The NRB has also said that the bank will operate according to the provision of Banks and Financial Institutions Act (BAFIA).