Laxmi Microfinance starts operation

KATHMANDU, JUNE 7: 

Laxmi Bank’s subsidiary –– Laxmi Microfinance –– has started its operation from Nuwakot.

It is the first of its kind subsidiary arm that caters to the micro credit needs of the rural people. It will open two more branches in remote areas. In order to promote microfinance institutions by bigger commercial banks, central bank had allowed the purchase of ordinary shares of microfinance institutions as deprived sector lending.

The central bank, recognising the importance of micro credit in order to enhance rural people’s access to finance, has been promoting microfinance institutions. At present there are 23 microfinance development banks in operation including Laxmi Microfinance.

Among these, Rural Micro Finance Development Center, Sana Kisan Bikash Bank and First Microfinance Development Bank provide wholesale lending to micro credit banks and institutions. Presently, the existing microfinance institutions are catering to an estimated 1.7 million households.

Source: THT