See how much capital does 1-3 District level Development Bank needs to add
Thu, Aug 13, 2015 12:00 AM on Others,
ShareSansar August 13:
As of Fiscal year 2071/72 there are 27 Development Banks with a working area of 1-3 districts.
According to the Monetary Policy 2072/73 unveiled by NRB, 1-3 district level Development Banks need to hike their capital to Rs 50 crore by the end of FY 2074. Earlier the minimum paid up requirement for 1-3 district level Development Bank was Rs 10 crore.
As per the latest quarterly report of Fiscal Year 2071/72, only three development banks with a working area of 1-3 districts have paid up capital more than Rs 20 crore.
Excel Development Bank Limited (EDBL) has the highest paid up capital and Reserve out of all 1-3 district level development banks. It has a paid up capital of Rs 20.25 crore and a Reserve of Rs 12.50 crore. It needs to increase its capital by further Rs 29.75 crore by the end of Ashad, 2074 to meet the requirement of paid up capital of Rs 50 crore, set by the monetary policy of 2015/16.
Dinesh Kumar Pokhrel, CEO of Excel Development Bank said,“ The bank plans to increase its capital to Rs 50 crore by issuing bonus shares and right shares.”
For now the bank is going to offer right share worth Rs 5.06 crore, which is in the process of being rated by ICRA Nepal. After the issuance of right share the bank’s paid up capital will rise to Rs 25.31 crore form the existing Rs 20.25 crore. The bank will also issue bonus share of the net profit earned in the fiscal year 2071/72 after which the bank’s paid up capital will stand at 31.6 crore, he added.
After Excel Development Bank stands Sahayogi Bikas Bank (SBBLJ) with a paid up capital of Rs 20.14 crore and a Reserve of Rs 11.80.
Corporate Development Bank (CORBL) has a paid up capital of Rs 20 crore but the reserve is in loss of Rs 18.11 crore. The bank has been declared as a problematic institution by NRB. The central regulatory bank declared the development bank crisis-ridden after the bank failed to improve its condition despite the NRB´s repeated directions for the same.
Green Development Bank Limited has the lowest paid up capital out of all 27 Development Banks. Its paid up capital stands at Rs 5.50 crore and it needs to increase its paid up capital by 44.50 crore to meet the requirement of Rs 50 crore by the end of fiscal year 2074. The bank is yet to issue its IPO for the general public.
| 1-3 District Level Development Banks | ||||
| S.No | Company | Paid up Rs in '000 | Reserve Rs in '000 | Additional capital required Rs in '000 |
| 1 | Excel Development Bank Limited | 202,500.00 | 125,099.32 | 297,500.00 |
| 2 | Sahayogi Bikas Bank Limited | 201,466.00 | 118,066.00 | 298,534.00 |
| 3 | Corporate Development Bank Limited | 200,000.00 | (181,113.00) | 300,000.00 |
| 4 | Metro Development Bank Limited | 185,669.60 | 50,723.92 | 314,330.40 |
| 5 | Tinau Bikas Bank Limited | 185,150.00 | 46,934.28 | 314,850.00 |
| 6 | Miteri Development Bank Limited | 162,518.00 | 75,189.00 | 337,482.00 |
| 7 | Manaslu Bikash Bank Limited | 161,700.00 | 25,159.28 | 338,300.00 |
| 8 | Subhechchha Bikas Bank Limited | 150,255.00 | 45,342.00 | 349,745.00 |
| 9 | Innovative Development Bank Limited | 150,000.00 | 65,283.52 | 350,000.00 |
| 10 | Pathivara Bikas Bank Limited | 141,450.00 | 52,128.81 | 358,550.00 |
| 11 | Purnima Bikas Bank Limited | 136,125.00 | 46,128.92 | 363,875.00 |
| 12 | Kanchan Development Bank Limited | 132,000.00 | 42,244.00 | 368,000.00 |
| 13 | Mahakali Bikas Bank Ltd. | 127,200.00 | 27,834.10 | 372,800.00 |
| 14 | Raptibheri Bikas Bank Limited | 125,013.00 | 17,846.00 | 374,987.00 |
| 15 | Alpine Development Bank Limited | 118,000.00 | 47,593.58 | 382,000.00 |
| 16 | Mission Development bank Limited | 115,000.00 | 35,905.13 | 385,000.00 |
| 17 | Western Development Bank Limited | 109,000.00 | 61,432.41 | 391,000.00 |
| 18 | Sindhu Bikas Bank Limited | 107,500.00 | 16,103.98 | 392,500.00 |
| 19 | Kankai Bikas Bank Limited | 100,000.00 | 33,085.00 | 400,000.00 |
| 20 | Bhargav Bikas Bank Limited | 100,000.00 | 31,813.53 | 400,000.00 |
| 21 | Nepal Community Development Bank Limited | 100,000.00 | 15,236.04 | 400,000.00 |
| 22 | Kalinchowk Development Bank Limited | 100,000.00 | 9,817.86 | 400,000.00 |
| 23 | Saptakoshi Development Bank Limited | 100,000.00 | 2,314.00 | 400,000.00 |
| 24 | Sajha Bikas Bank Limited | 100,000.00 | (9,691.00) | 400,000.00 |
| 25 | Karnali Bikash Bank Limited | 80,000.00 | 41,146.00 | 420,000.00 |
| 26 | Narayani Development Bank Limited | 55,572.00 | 65,617.00 | 444,428.00 |
| 27 | Green Development Bank Limited | 55,000.00 | (9,423.00) | 445,000.00 |
*Narayani Development Bank and Green Development Limited are yet to issue its IPO to the general Public
