Investment opportunity for banks and financial institutions; NRB offering fixed deposits worth Rs 13,055 lakh for one year

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 Jestha 01, 2076 to Baisakh 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 10,444 lakh
National level development banks: Rs 1,958 lakh
National level finance companies: Rs 653 lakh

Thus NRB will be moving out a total of Rs 13,055 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 Baisakh 23, 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.