Banks slow down branch expansion
KATHMANDU, MAY 05 -
Commercial banks have slowed down their branch expansion. As of the first nine months of the current fiscal year, banks have already opened 103 branches and they are expecting to add 77 additional branches within the current fiscal year.
This means, they will have 180 more branches this year. But the figure is still less than 231 braches opened in FY 2009-10.
With the central bank imposing certain conditions for expanding braches, banks have been slow in expanding braches this year. The monetary policy this year has provisioned that banks can open new branches in Kathmandu only after opening two branches outside the Valley. It has also provisioned that banks should take the central bank’s approval before expanding branches. Earlier, they could just notify the regulator after adding new branches. “As banks have to justify the reason behind branch expansion in certain area, they could not open new branches as per their desire,” said Ashoke Rana, President of Nepal Bankers’ Association.
Mega Bank is the frontrunner in expanding branches with 12 branches apart from its corporate office as of mid-April. Nabil opened 10 outlets, while DCBL bank added nine.
However, Rastriya Banijya Bank will overtake these private sector banks if it achieves its target of adding 12 additional branches this year.
Commerze and Trust Bank and Janata Bank have targeted to open 14 branches each this year. The banks added two and eight branches, respectively, so far this year.
Two new banks which started operations in 2010-11—Civil Bank and Century Commercial Bank—are carrying out homework for adding 5 branches each.
Nepal Bangladesh Bank has added one new outlet in its branch network by converting the office of Nepal Sri Lanka Merchant Banking Finance Limited, which was merged with the bank.
Source: Kantipur
Commercial banks have slowed down their branch expansion. As of the first nine months of the current fiscal year, banks have already opened 103 branches and they are expecting to add 77 additional branches within the current fiscal year.
This means, they will have 180 more branches this year. But the figure is still less than 231 braches opened in FY 2009-10.
With the central bank imposing certain conditions for expanding braches, banks have been slow in expanding braches this year. The monetary policy this year has provisioned that banks can open new branches in Kathmandu only after opening two branches outside the Valley. It has also provisioned that banks should take the central bank’s approval before expanding branches. Earlier, they could just notify the regulator after adding new branches. “As banks have to justify the reason behind branch expansion in certain area, they could not open new branches as per their desire,” said Ashoke Rana, President of Nepal Bankers’ Association.
Mega Bank is the frontrunner in expanding branches with 12 branches apart from its corporate office as of mid-April. Nabil opened 10 outlets, while DCBL bank added nine.
However, Rastriya Banijya Bank will overtake these private sector banks if it achieves its target of adding 12 additional branches this year.
Commerze and Trust Bank and Janata Bank have targeted to open 14 branches each this year. The banks added two and eight branches, respectively, so far this year.
Two new banks which started operations in 2010-11—Civil Bank and Century Commercial Bank—are carrying out homework for adding 5 branches each.
Nepal Bangladesh Bank has added one new outlet in its branch network by converting the office of Nepal Sri Lanka Merchant Banking Finance Limited, which was merged with the bank.
Source: Kantipur
