NRB directs microfinances to sell cross holdings of financial institutions

The Nepal Rastra Bank has instructed microfinance companies to sell all crossholdings of financial institutions by the end of Ashad 2074. After the instruction three microfinances will have to sell 4 lakh 80 thousand unit shares from crossholdings. If we see the annual financial report of 2070/71, Rural Microfinance Development center, NirdhanUtthan Bank, Nerude Laghubitta Bikash Bank and five other microfinances have to sell its shares. After the NRB order, Rural Microfinance has to sell 4 lakhs kitta share. The company has 2 lakh 50 thousand kitta share in Jivan Bikas Laghubitta Bittiya Sanstha and 1 lakh 50 thousand unit shares in Forward Community Microfinance Company. Jivan Bikash Laghubitta which is included in Rural Microfinance financial report is yet to get status of microfinance. The NRB has also directed non-government companies who do micro loan transaction to change their status as Microfinance Company by the end of Poush, 2072. So, from this instruction Jivan Bikas will also have to gain Microfinance Company status by the end of Poush, 2072. Nirdhan Utthan has invested 11 thousand units of Rural Microfinance and 66 thousand units share of Pashimanchal Grahmin Bikas bank. Pashimanchal Grahmin Bikash has already merged with Nepal Grahmeen Bikas Bank. In the merger process price per share of the bank remains at Rs 108. Similarly, Nerude Laghubitta Bikas Bank has to sell 1720 units shares of Rural Microfinance. In the fiscal year 2071/72 its ratio has likely to be changed although investment of few companies has not changes for years. In the microfinance sector, many microfinance companies told that they have not invested in shares. Those companies who have not invested in shares are Swabhalamban, Deprox, Naya Nepal, Clean Village, Laxmi, Mahila Sahayatra and Summit microfinance.