Future projects: Introduction of two commercial banks

A giant organization with huge capital and promoters is on its way to operate as a commercial bank in near future. The company beholds 1200 promoters with the share capital of Rs. 2 billion right in the beginning. "Hamro Bank" is the name given to this bank which has reached the final steps of its formal proceedings with Nepal Rastriya Bank (NRB). The bank comprises 30% of the share of general public, and remaining 70% of other promoters which implies that the general public has invested Rs. 600 million in this bank. The promoters of the bank incorporates investors from various field such as PABSON, various government and non government organizations, publication houses, foreign employment organizations, tourism and travelling agencies, finance companies, share investors, universities, higher secondary schools, carpet and pashmina industry related persons, doctors, engineers and even lawyers are included in here. The bank will commence its operation within 6 months after the head bank (NRB) permits. It is yet to be decided on where the head office will be located. The formal proceedings are being carried out in a temporary office with 13 members situated in Naxal. Another giant includes a merger of 5 organizations, 1 development bank and four finance companies. Mahalaxmi Finance Ltd, Birgunj Finance Ltd, Siddhartha Finance Ltd, Butwal Finance Ltd and Himchuli Development Bank have amalgamated to form a big commercial bank with Rs. 2 billion in hand. The name of the commercial bank is yet to be decided. All the financial institutions are planning to increase their paid up capital to Rs 400 million each to make Rs 2 billion in total required for the up gradation for the commercial banks. The united banks will have its head office in Kathmandu while their prevailing offices will be the branches of the bank. Mahalaxmi Finance, National Finance and Narayani Finance have earlier declared a merger for upgradation to a Development bank. However, the plan didnot work.

Source: Jamb News Service