NCC Bank credit limit restriction lifted
Kathmandu, May 26:
Nepal Credit and Commerce Bank Ltd (NCC Bank) has been allowed to disburse loan worth more than Rs 5 million without prior approval of the central bank -Nepal Rastra Bank.
This latest decision in favour of the troubled financial institution comes after NCC Bank raised its paid up capital by floating rights shares in the ratio of 1:1 to its shareholders. The bank’s paid-up capital has now increased to Rs 1.4 billion following it issued 7 million rights shares to its shareholders, which have already been listed at Nepal Stock Exchange.
NCC Bank is in comfortable position to meet the deadline to raise its paid-up capital to Rs 2 billion by mid-July 2013, states a bank press release here today.
The bank has also earned operating profit of Rs 390 million during the first nine months of the current fiscal year 2007-09. As a result, the bank’s capital fund has gone up by six per cent surplus. The bank’s new credit limit per client under the capital fund has doubled to Rs 60 million and the credit limit under non-capital fund has been raised to Rs 120 million.
NCC has been providing banking services through 17 branch network using any branch banking system. The bank plans to launch internet banking services soon.