Nepal Infrastructure Bank to come in operation within 6 months; 40 percent shares to be issued to ordinary shareholders worth Rs 8 arba

Nepal Infrastructure Bank Limited has received approval from Nepal Rastra Bank for its establishment. The bank includes various commercial banks, insurance companies and private sectors as the promoters.Governor Dr. Chiranjeevi Nepal had provided approval letter for establishment on Sunday.

Nepal Infrastructure Bank has paid up capital of Rs 20 arba in which promoters will have investment of Rs 12 arba and ordinary shareholders will have holdings worth Rs 8 arba. The bank will have 10% investment from Nepal Government, 50% from promoters and 40% investment from the ordinary shareholders.

After the approval provided by the Rastra Bank, the bank is supposed to allocate required infrastructures and apply for starting financial transaction within 6 months.

The bank’s main objective is to provide loans in various sectors of infrastructure development, investing in the companies related to infrastructure development and issuing letter of credit for the companies importing machines and instruments required for infrastructure development.