Banking News – Nepal Rastra Bank (NRB) has announced that it will invest Rs. 24.18 billion from its various funds in fixed deposits with banks and financial institutions.

According to the central bank, banks and financial institutions can submit their interest rate proposals until midnight on Shrawan 18.

Of the total amount, Rs. 19.35 billion will be invested in commercial banks, Rs. 3.62 billion in national-level development banks, and Rs. 1.20 billion in national-level finance companies as fixed deposits.

To be eligible, banks and financial institutions must have been in operation for at least two years and must maintain the minimum capital adequacy ratio prescribed by the central bank.

The NRB has also stipulated that the non-performing loan (NPL) ratio must not exceed 8 percent, while the net NPL ratio must remain below 3 percent.

In addition, eligible institutions must comply with the prescribed net liquidity ratio and credit-to-deposit ratio limits, have reported a net profit in the most recent fiscal year’s financial statements, and, if previously placed under Prompt Corrective Action (PCA), must have been released from such measures for at least six months.

The central bank said the investment aims to place surplus funds from its various reserves while ensuring they are deposited only with financially sound and compliant banking institutions.