CEO of Rastriya Banijya Bank announces to establish Microfinance by the end of this fiscal year

Rastriya Banijya Bank Limited (RBB) is gearing up with a lot of new products and services in pipeline. It is in the process of offering Rs 2.57 billion worth of shares to the public. It's clienteles as well as public from all over Nepal are anxious to invest in this bank. RBBL is also in the process of establishing a subsidiary company to involve in Merchant banking sector. The Nepal Rastra Bank also requires commercial bank to lend at least 5% of their deposit to the small sector such as microfinance institutions. Mr. Krishan Prasad Sharma, CEO of RBBL, shed some light on the preparation of RBBL to enter the microfinance bunsiness. According to Mr. Sharma, Officials at RBBL are in the process of internal preparation to establish a subsidiary for the purpose of wholesale lending to microfinance institutions. Although it is still in planning phase, the RBBL's subsidiary aims to be nontraditional wholesale lender. It plans to lend money through self help groups in rural areas. Lending through Self help groups is very successful especially in rural parts of India. Operating cost on this particular model is lower than other model. All kinds of wholesale lending model are being considered at this time added Mr. Sharma. Microfinance is expected to be operational by the end of fiscal year 2072/73. RBBL is launching two new subsidiary companies in this fiscal year along with offering its shares to public. All this investment with promising returns indicates that everyone should be prepared to grab the shares of RBBL once it is available.