Central Bank to Continue Managing NBL

Nepal Rastra Bank (NRB) has decided to continue supervising the management of the Nepal Bank Limited (NBL) for nine more months. The board meeting of the Central Bank decided recently to extend the time to look after the management of the NBL and complete its recapitalisation within that period. The management of the NBL is led by the NRB’s Director, Maheshwor Lal Shrestha. The earlier tenure expired on mid- April. 

As the bank’s capital is yet to be improved, the management will be handed over to the NBL after the recapitalisation plan is completed within the extended time period, said the representatives of the Central Bank. As per the recapitalisation plan, the bank will issue 1:9.5 rights shares to its stakeholders to increase paid-up capital to Rs. 4 billion, from the current Rs. 380 million. The country’s oldest bank is also set to sell its fixed assets to increase its capital. 

The bank has also targeted to increase the public share to 49.94 percent as per the plan. Currently, government holds 41 percent stake in NBL while 50 percent is owned by public shareholders and the remaining belongs to different financial institutions.

BFIs Increases Investment in Health Sector

Investment in the health sector by Banks and Financial Institution (BFIs) has increased around 61 per cent until mid February 2013 in comparison to the same period previous year. The investment from BFIs in these sectors was Rs 9.79 billion till mid February 2013, while it was Rs 6.9 billion during the same period last year. 

According to the canalysts, different factors such as less risks, various facilities from government, discount in buying medical goods or high returns within short period have attracted more investments to the health sector, compared to other investment areas. The higher number of patients and the general increase of population have also attracted investment prospects in health sectors, mainly in medical centers, hospitals and nursing homes. 

Similarly, the investment by BFIs in the service sector, excluding education, has also increased up to 21 per cent during the same period, with total investment of Rs 66.83 billion. The investment in the same sector was Rs 55.14 billion in the corresponding period of previous year.