Laxmi Capital News
Know the paid up capital of development banks working area-wise! Have the Development Banks met their minimum capital requirement yet Which banks have the highest capital

As of Poush 2074, there aretotal 36 Development Banks in Nepal. Among them, 13 are of national level, 1Development Bank is with a working area of 4-10 districts and 22 are with aworking area of 1-3 districts out of which 2 banks are operating in a singledistrict.

According to the MonetaryPolicy 2072/73 unveiled by NRB, the minimum paid-up capital requirement fornational level development banks is Rs 2.5 arba. Similarly, 4-10 district levelDevelopment Banks are required to hike their capital to Rs 1.2 arba and 1-3district level Development Banks need to hike their capital to Rs 50 crore andby the end of FY 2074. Earlier the minimum paid up requirement for nationallevel, 4-10 district level and 1-3 district level Development Bank was Rs 64crore, Rs 20-30 crore and Rs 10-30 crore, respectively.

As per the latest secondquarterly report of Fiscal Year 2074/75, only 5 national level developmentbanks has been able to maintain its capital above Rs 2.5 arba. Shine ResungaDevelopment Bank Limited, the only bank operating in 4-10 districts, has alsomaintained its capital above the minimum requirement.  And only 6 bankswith a working area of 1-3 districts have been able to maintain the minimumrequired capital. However, Nepal Rastra Bank (NRB) has extended deadline forClass ‘B’ and ‘C’ financial institutions operating in a single district to meetthe requirement of minimum paid-up capital within Poush 2076.

Mahalaxmi Bikas Bank Limited(MLBL) has the highest paid-up capital of Rs 2.63 arba out of all the nationallevel development banks. It has already met the minimum requirement of paid-upcapital.

Similarly, Shine Resunga BikasBank Limited (SHINE), the only development bank with a working area of 4-10districts, has a paid-up capital of Rs 1.37 arba and has met the minimumcapital requirement set by Nepal Rastra Bank.

Likewise, Excel DevelopmentBank Limited (EDBL) has the highest paid up capital of Rs 69.26 crore out ofall 1-3 district level development banks. It has also met the requirement ofpaid up capital of Rs 50 crore set by the monetary policy of 2015/16.

Given below is the list ofdevelopment banks in Nepal along with their working areas and paid-up capitalas per the latest quarterly report (i.e. Q2 Report of FY 2074/75):