PM inaugurates Mega Bank Nepal

Himalayan News Service

KATHMANDU: Banks have become too urban-centric and are neglecting rural areas where majority of population reside, said Prime Minister Madhav Kumar Nepal while inaugurating country’s 28th commercial bank Mega Bank Nepal here today. The bank has begun operations since July 23, 2010.

Financial services providers need not shy from venturing into less active sectors such as agriculture which is in need of financial help, said Yubaraj Khatiwada, Governor of Nepal Rastra Bank at the function.

“The financial intermediaries should also try to unravel prospects in less lucrative sectors so that these sectors can grow,” he said, adding that there is a need for good corporate governance for financial stability. “Floating loans to productive sectors yet maintaining low credit-deposit ratio has to be the priority,” he said.

The bank, backed up by 1,219 promoters from over 63 districts of the country, said it would follow the principles of economic inclusion.

Mega Bank’s tag line Banker of Every Nepali from Plough to Power reflects our commitment to give importance to tiny projects such as in agriculture as well as huge projects as in hydropower, said chief executive of the bank Anil Keshari Shah.

“Mega will serve from big corporate houses to the small rural market,” Shah said, adding that the bank is designing its products to cater to the needs of people from the top of the pyramid to the bottom.

The bank strives towards providing financial solutions from micro to SMEs and corporate and linkages by better managing end-to-end value chain. “With better distribution of wealth, business model and synergy, Mega Bank will extend banking net to include those who are not into formal banking. This is our commitment,” he added. “The bank aspires to be one of the top financial institutions in next five years,” said chairman of the bank Dr Madan Kumar Dahal.

The bank has an authorised capital of Rs 4 billion and a paid-up capital of Rs 2.33

billion. It has collected deposits worth Rs 1.7 billion and floated loans worth Rs 2.1 billion since July 23.