Kathmandu: Nepal Rastra Bank has called for proposals from banks and financial institutions to place Rs 1.10 billion in fixed deposits.
The central bank announced on Monday that the funds, drawn from its Employees’ Protection Fund, will be deposited across eligible banking institutions.
Of the total amount, Rs 880 million will be placed with commercial banks, Rs 165 million with development banks, and Rs 55 million with finance companies. Interested institutions have been asked to submit their proposals, specifying the interest rate offered and the amount they wish to accept, by 7:00 pm on February 25.
The central bank has set strict eligibility criteria. Only institutions that meet minimum capital adequacy requirements will be allowed to bid. Their gross non-performing loans must not exceed 8 percent, and net non-performing loans must remain below 3 percent.
In addition, the credit-to-deposit ratio must fall within limits prescribed periodically by the central bank, and the institution must have reported a net profit in the most recent fiscal year.
Banks that were previously subjected to prompt corrective action may apply only if at least six months have passed since the restrictions were lifted.
Furthermore, institutions must not have been declared problematic under Section 86(B) of the Nepal Rastra Bank Act, 2002. If they were previously designated as problematic, at least six months must have elapsed since their release from that status, and they must have already issued the shares allocated to the general public before submitting a proposal.
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