Citizens´ Bank International confident of raising paid-up capital.
Thu, Apr 21, 2011 12:00 AM on Others,
KATHMANDU, April 21:
Citizens’ Bank International has assured that it will be able to increase its paid-up capital to Rs 2 billion soon.
“We are short of only Rs 80 million to fulfil capital requirement, which we can raise in no time,” said CEO of the bank Rajan Singh Bhandari during the fourth anniversary celebration of the 20th commercial bank here in the Valley today.
According to the central bank’s regulation, commercial banks are supposed to increase their paid-up capital to Rs 2 billion by mid-April 2011.
Citizens Bank International has floated right shares worth Rs 80 million to increase paid-up capital. “It is commendable that despite the difficult investment climate, our bank is doing well. All the financial indicators are sound,” expressed Bhandari, referring to 0.4 per cent Non Performing Assets and liquidity ratio of 22 per cent.
“The tight liquidity situation in the country has increased the cost of fund as interest rates have escalated in last couple of years. As a result, the constrained investment has affected overall growth of the economy,” he said, pointing out that the deposit interest rate that is exceeding 12 per cent currently will be harmful for the economy. “When deposit interest crosses 12 per cent, the lending interest will easily cross 21 per cent which will be harmful for the overall investment climate which is already unfavourable.”
The bank entering its fifth year of operation offers is banking services to more than 100,000 customers through its 26 branch network and 24 ATMs throughout Nepal. It will be shortly opening six more branches across Nepal including remote districts such as Dolakha and Humla.
The bank has been able to earn Rs 174.3 million operation profit by the third quarter of the current fiscal year and collected deposits worth Rs 13.8 billion and floated loans worth Rs 12.6 billion. To commemorate the occasion, the bank also conducted blood donation and eye donation programme.
Source: THT
Citizens’ Bank International has assured that it will be able to increase its paid-up capital to Rs 2 billion soon.
“We are short of only Rs 80 million to fulfil capital requirement, which we can raise in no time,” said CEO of the bank Rajan Singh Bhandari during the fourth anniversary celebration of the 20th commercial bank here in the Valley today.
According to the central bank’s regulation, commercial banks are supposed to increase their paid-up capital to Rs 2 billion by mid-April 2011.
Citizens Bank International has floated right shares worth Rs 80 million to increase paid-up capital. “It is commendable that despite the difficult investment climate, our bank is doing well. All the financial indicators are sound,” expressed Bhandari, referring to 0.4 per cent Non Performing Assets and liquidity ratio of 22 per cent.
“The tight liquidity situation in the country has increased the cost of fund as interest rates have escalated in last couple of years. As a result, the constrained investment has affected overall growth of the economy,” he said, pointing out that the deposit interest rate that is exceeding 12 per cent currently will be harmful for the economy. “When deposit interest crosses 12 per cent, the lending interest will easily cross 21 per cent which will be harmful for the overall investment climate which is already unfavourable.”
The bank entering its fifth year of operation offers is banking services to more than 100,000 customers through its 26 branch network and 24 ATMs throughout Nepal. It will be shortly opening six more branches across Nepal including remote districts such as Dolakha and Humla.
The bank has been able to earn Rs 174.3 million operation profit by the third quarter of the current fiscal year and collected deposits worth Rs 13.8 billion and floated loans worth Rs 12.6 billion. To commemorate the occasion, the bank also conducted blood donation and eye donation programme.
Source: THT
