NIDC joins the banking sector
KATHMANDU: Nepal Industrial Development Corporation (NIDC) Ltd, an institution established in 1960 for industrial growth in Nepal, is starting banking business from Monday. NIDC has got class ‘B’ — development bank — license from Nepal Rastra Bank (NRB).
NIDC has 99.26 per cent stake of the government and 0.74 per cent from the public. In the last five decades, it facilitated the growth of 1,100 industries including 414 small and medium scale industries with an investment of Rs 6 billion.
It promoted Nepal Bima Sansthan and Nabil Bank, Nepal’s first private bank.
NIDC bore loss of Rs 602.8 million in 2005-06 which led to it failing to promote industrial jobs. However, the government entity succeeded in recouping its debts and gained profit Rs 87.5 million, Rs 1,110 million and Rs 204 million in the consecutive years starting from 2006-07.
NIDC is planning to expand its capital base of Rs 640 million as per the statutory requirement of NRB. It has current capital Rs 415.8 million and will issue public shares worth Rs 184.2 million and bonus shares worth Rs 40 million this year.