NRB offering fixed deposits worth Rs 5,805 lakh for one year; A, B and C class banks and financial institutions eligible to apply

Nepal Rastra Bank (NRB) has published a notice today summoning the banks and financial institutions to bid for one year fixed deposits that it has on various funds. The fixed deposits will be provided from Shrawan 01, 2076 to Ashad 31, 2077 (365 days) and the interest will be payable quarterly.

All three classes of BFIs are eligible to bid given they fulfill the parameters set by NRB. The amount for each class of BFI is as follows:

Commercial bank: Rs 4,645 lakh
National level development banks: Rs 870 lakh
National level finance companies: Rs 290 lakh

Thus NRB will be moving out a total of Rs 5,805 lakh into the financial system of Nepal as fixed deposits. The interested BFIs will have to submit a sealed bid form to NRB disclosing the amount and interest rate offered by Ashad 22, 2076 3:00 PM.

The various eligibility criteria are:

1. BFI must have completed 2 years of operation.
2. BFI should have the minimum required capital.
3. The non-performing loan (NPL) should be less than 5% of the total loans and advances.
4. Net liquid assets must be at least 20% of total domestic deposits.
5. The loans to domestic deposit cum core capital should be as mandated by the NRB.
6. BFI must have operating profit after provisions in the immediate past Fiscal Year
7. Real estate loan should be below the mandated level by NRB
8. Any director, CEO or executive directors penalized by NRB should not be in the organization.
9. If the BFI was in a problematic state, it has to cross at least 6 months after being reinstated
10. The share separated for the general public should have been already floated.

Official notice and application form