Pokhara, May 7 :

There are over three-dozen banks and finance companies currently operating in Pokhara. Nepal Bank Ltd, Rastriya Banijya Bank, branch offices of almost all the private banks, agricultural, industrial and rural development banks and six finance companies are operational here at present.

And the good news is that they all are doing well. Dhananjay Sharma, manager of the Investigation Unit of Nepal Rastra Bank (NRB), Pokhara branch, said that the rise in purchasing power of consumers is the main cause behind this development. And the other reason of sudden rise in the banking institutions is the transfer of branch offices of different banks that were previously operating in the rural areas nearby Pokhara.

“However, further increase in number of banks may cause inconvenience,” Krishna Parajuli, chief executive officer at the Business Development Financial Institution (BDFI), said. He said that these financial institutions need to expand their services to sustain in the long run.

Executive chairman of Gandaki Development Financial Institution Ltd, Pokhara, said the customers are, however, being facilitated by the increasing number of banks. “Investment policies play important role in earning profits for any financial institution,” Saroj Pyakurel, manager of Nabil bank, Pokhara branch said adding that commission earned by providing different services to customers, profit in exchange rates of foreign currencies and increased rate of interest in loans are playing vital role in the current development.

“The banks and finance companies in Pokhara have invested mostly in real estate, vehicle and educational loan. Number of banks is on the rise in Pokhara because of tourist inflow and remittance,” Dinesh Shankar Palikhe, managing director of Pokhara Finance Ltd, said.

It is estimated that over Rs 1 billion enters Pokhara as remittance in a week alone.