Baglung to have six more banks

Baglung, August 20:

In an indication that gloomy days are over after the prolonged armed insurgency in the country, six private banks are stepping into the district.

These would bring the number of banks doing transactions here to a total of nine. The move comes at a time when voices are being raised for a rural-oriented economic structure and banking system. Although there is modest chance for further investment, the opening of bank branches would mean support to financial activities, rise in saving deposits and remittances.

These banks also chose the zonal headquarter of Baglung in accordance with the policy of the Nepal Rastra Bank requiring banks to expand their branches in rural areas.

Economists think that for economic development in new Nepal, banking services should focus on rural areas.

For economic development in rural areas, a conducive environment and political stability are important to ensure banks establish their branches there, Laxman Chalise, branch manager of Nepal Bank Ltd, Baglung said.

Sources at Nepal Bank Ltd and Agriculture Development Bank said that these banks are preparing to move their branches from district headquarters to villages again. These were displaced to district headquarters during the period of armed insurgency.

Everest Bank which has its branch at Baglung is expanding its banking services to hilly areas for the first time from Baglung. Branch manager of Everest Bank at Baglung, Nishit Sharma said all branches of the bank were centered on the Terai region only. Another private bank, Nabil Bank too is setting up a branch office here with a plan to start transactions within two months.

Branch manager of Nabil Bank, Toran Bikram Shah said, “The state should guarantee security for expanding banking transactions in rural areas.”

Federation of Nepalese Chamber of Commerce and Industries (FNCCI) too is hopeful that economic development would be achieved if there are auxiliary facilities like banking services.

Central member of the FNCCI Sahadev Rajbhandari says these banks should play a key role in maintaining rural-oriented economic system. Many banks including Nabil Bank, Global Bank, Everest Bank, Machhapuchhre Bank, Kumari Bank and Bank of Kathmandu are said to have taken decisions to set up branch offices at Baglung.