Kathmandu, November 7:

Nabil Bank Ltd and Postal Services Department have entered into a strategic alliance to work together towards developing a banking relationship between the bank and the Postal Savings Bank.

Anil Shah, chief executive officer of Nabil Bank and Shreedhar Gautam, director general of Postal Services Department, today signed the agreement on behalf of their respective organisations.

As per the agreement, the Postal Savings Bank, operating under the Postal Services Department will deposit its funds into their account at Nabil Bank for this year. To start with, Nabil Bank will provide two core functions for the Postal Savings Bank, firstly the placement of their deposits and secondly a financial advisory role, if and when required. In the coming days, both parties will also work together to expand and effectively mobilise their individual strength to provide value addition to each other and their respective customers, states a press release distributed on the occasion.

The Postal Savings Bank offers two types of savings deposit from 117 of its offices, firstly for senior citizens over 70 years of age at six per cent per annum and secondly, normal accounts at five per cent per annum.

“For us, this is truly a noteworthy day because since our inception over two decades ago as Nepal’s first joint venture bank, we have been consistently asked how we plan to reach millions of Nepalis living in rural areas. With this alliance, we are able to indirectly provide our service backbone to the vast majority of Nepal,” commented Anil Shah, CEO of Nabil Bank, adding that the bank is starting with basic deposit products.

“But the opportunities and areas of working together are limited only by our imagination,” he said.

DG Gautam also expressed that the partnership between the government entity and private sector bank will make offer access of formal banking channels to millions of people living in rural Nepal. He also said that remittance delivery would also be easier in addition to the promotion of saving culture among rural folks.