Three financial institutions (FIs) banned from collecting deposits, lending

KATHMANDU, FEB 16 -

The Nepal Rastra Bank has banned three financial institutions (FIs) from collecting deposits, lending and distributing dividends to shareholders for their failure to increase their paid-up capital on a proportional basis every year.

The FIs are Mercantile Finance, Birgunj; Multipurpose Finance, Rajbiraj; and Investa Finance, Birgunj.

As per the NRB directive, financial institutions licensed before April 2008, should increase their capital every year. Four to ten districts-based development banks should increase their capital to Rs 200 million and one to three districts-based development banks should increase to Rs 100 million by 2012-13. Regional level finance companies should increase their paid-up capital to Rs 100 million by the deadline.
As of the first quarter of the current fiscal year, Mercantile has a paid-up capital of Rs 18 million, Multipurpose has Rs 15 million and Investa has Rs 24 million.

Currently, Mercantile has deposits of Rs 44.9 billion and credit of Rs 73.2 million.

Similarly, Multipurpose has deposits of Rs 62.2 million and credit of Rs 94.5 million. Deposits of Investa stand at Rs 12.8 million, while its credit is Rs 63.7 million.


Banned FIs

Mercantile Finance Birgunj

Multipurpose Finance Rajbiraj

Investa Finance Birgunj

Posted on: 2011-02-16 09:28



Source: http://www.ekantipur.com/2011/02/16/business/three-fis-banned-from-collecting-deposits-lending/329679.html