Muktinath Development Bank Completes 15 Years; The Only Development Bank To Have Bank Deposits Worth Rs. 10,000 crores

Wed, Jun 8, 2022 4:24 PM on Featured,

Muktinath Development Bank Limited (MNBBL) has completed 15 years of its establishment. During this time, the bank has solidified its position as a development bank by significantly boosting deposit collection while retaining a strong brand.

According to the bank's unaudited financial results for the third quarter of the current fiscal year 2078/79, the bank made a profit of over Rs 1.02 Arba during the review period making Muktinath Bank the only development bank to achieve a profit above Rs 1 Arba.

In the last four years, the bank has achieved satisfactory results in deposits and investments, while other indicators of the bank have also improved significantly. The value of bank deposits has risen to nearly Rs 1 Kharba. In terms of deposits, Muktinath has overtaken not only development banks but also three commercial banks. The bank has paid attention to its brand's credibility in addition to deposits and investments. The bank's brand equity has grown as a result of its brand management and new market marketing initiatives.

Mr Basant Bakshi, the marketing and corporate affairs head, who has worked in the banking industry for more than 12 years, believes that enthusiasm, creative thinking, major contribution, and aggressive strategy are the key factors in the bank's deposit and brand growth. He claims to be working on the bank's marketing and brand promotion in accordance with the premise that new technology and methodologies in brand management and marketing should be implemented.

The bank, which currently has over 12 lakh customers, has a customer retention rate of more than 70%. Bakshi claims that "The bank has been able to make reasonable progress notwithstanding the liquidity problem. More than 626,000 women have personal accounts with the bank, whereas 451,000 men have accounts, and the majority of persons between the ages of 31 and 40 have bank accounts in our bank”.

The Muktinath Development Bank's emphasis on branding has also aided in the development of this momentum. Due to the bank's branding, the bank has so far expanded its branches in State-1, Lumbini, and Far-Western states. According to Bakshi, the bank's name is well-known throughout the country. He further adds, in four years, the brand has contributed to the addition of seven lakh new clients. Every year, the bank achieves success as a result of prompt and reliable service, and despite the fact that the bank began operations in a village in Kaski and expanded to the city, they have spared no effort to give additional services and facilities in the village.  

Every year, one or two new schemes are implemented for the convenience of clients, according to Bakshi. "Our 'Progressive Savings' account is now drawing a huge number of clients. Customers have been receiving interest as good as fixed deposit account on this product. Likewise the bank has 'Sarvokrit' and 'Uthkrist' products too, with this the bank is providing monthly interest rates on most of its deposit products”, he stated.

Bakshi stated that this service would be available at all times. Muktinath's ATM card can also be used to withdraw money from any bank's ATM machine without any cost. Muktinath Bank is growing at a healthy rate, despite the fact that the country is experiencing a severe liquidity crisis. The bank has been visiting farmers' farms and instructing them on how to connect with the bank and how to use the bank's current services.

“The bank has adopted a planning model in which agriculture and farmers are given priority, our main goal is to provide farmers with agriculture-friendly accounts and digital banking services," he explained. Bank staff are heading to the farmer's residence to open a bank account and empower them to inculcate savings habits to secure their future. 

Muktinath Development Bank, on the other hand, has been using information technology to inform its consumers about the bank's services. Almost 60 per cent of accounts holders of Muktinath are under the age of 30 is helping the bank to disseminate the information through social media platforms. 

Muktinath Development Bank has 170 branches and 2 extension counters in 55 of the 77 districts where it operates.