Promote development banks, says NPC veep

KATHMANDU: Development banks should be promoted to develop rural areas and raise the living standards of people, said National Planning Commission vice-president Dr Yuvraj Khatiwada while speaking during the eighth anniversary celebration of Sana Kisan Development Bank Ltd’s (SKDBL) here today.

He focused on the development of an enabling environment for the development of people in rural areas. According to Khatiwada,

development banks should be promoted so as to develop rural areas and raise the living standards of people there.

“Though the number of financial institutions is increasing, it will not affect the number of customers going to any particular financial institution,” said Dr Khatiwada adding that for this budget they have advised the government to include special package for those taking loan and making timely payback.

SKDBL managing director Upendra Bahadur Karki said the bank has prepared a four-year business plan from 2009-2013 and will soon implement it. The bank aims to reduce poverty by increasing its services by 15 per cent compared to the current level of service.

The bank has total paid up

capital of Rs 123.1 million in which Agricultural Development Bank

has Rs 44 million, the government has Rs 20 million, Nepal Bank Ltd has Rs 50 lakh, Nabil Bank has Rs 2 million and there is Rs 52 million of 178 small farmers’ cooperative companies. The total number of credit transactions till date is 223, and total number of investors is 47,77,032.

Within another three years, the bank through 334 micro finance companies will be extending its services to rural areas and within the same period it has targeted to flow loan of Rs 3 billion. According to Karki, government should work out more programmes so that there is no lack of financial resources.

Meanwhile, Khatiwada urged for the promotion of products made by people from rural areas. “Products from rural areas must be recognized and brought to the market to make these known,” said Khatiwada.