Merchant Banking arm of Rastriya Banijya Bank eyes to help its clients' in Nepal and abroad to invest in various projects

Rastriya Banijya Bank Limited (RBBL) is looking forward to diversifying its income base. It also has plans to offer shares worth Rs 2.57 arba to public in near future. The bank is financially in good health and has become one of the leading banks in this sector. Almost a decade ago the bank was in the verge of collapse due to higher Non Performing Loan (NPL) and scarce liquidity. The bank has turned around its fortune over the course of time and has become the most profitable financial institution of Nepal. Our team met with Mr. Krishna Prasad Sharma, Chief Executive Officer, of RBBL to discuss various hot issues surrounding the bank. Mr. Sharma informed us that the RBBL is in process to extend its base of traditional income source from interest. It has planned to enter lucrative market of merchant banking. According to Mr. Sharma, RBBL has already secured letter of intent from the Nepal Rastra Bank to establish a subsidiary merchant banking arm of RBBL. RBBL is in the process of registering the Merchant banking arm with the office of company registrar and getting approval from SEBON. The merchant banking arm should be operational from last week of Poush 2072, added Mr. Sharma. RBBL will use its merchant banking arm to invest in the secondary share market of Nepal, NEPSE. Furthermore, it also has plans to use mutual funds resources to allow its clients from all over Nepal to invest in various projects. It also has plans to open door for investment for Nepalese citizen living abroad through mutual fund scheme. Under this scheme managed by the merchant banking arm of RBBL, the Nepalese citizen in home and living abroad can directly invest in selected projects for a good return.