Five cooperatives to merge to create 'National Ideal Yamuna'

Kathmandu, Aug. 27

Five cooperatives operating at different locations in Kathmandu are going to merge with each other and create 'National Ideal Yamuna Cooperative'.

Ideal Yamuna Multipurpose Cooperative, National Namobuddha Savings and Credit Cooperative, Citizen Welfare Multipurpose Cooperative, Satkar Savings and Credit Cooperative and Ghedung Multipurpose Cooperative Limited have entered into an agreement on Saturday to merge with each other.

After the merger, the turnover of the organisation will reach Rs. 9 billion. According to the organisation, its savings will reach Rs. 4.63 billion and loan size Rs. 4.99 billion. Similarly, the total assets of the organization will reach Rs. 7.58 billion

According to the agreement, the name of the cooperative after the merger will be National Idol Yamuna Savings and Credit Cooperative Organisation Limited.

Similarly, after the merger, the cooperative organisation's share capital will reach Rs. 308.1 million, the number 35,020, and debtor members 6,858.

After the merger, the organisation's reserve fund will reach Rs. 146.6 million and the credit risk fund 124.2 million. Likewise, liquidity amount will be Rs. 1.13 billion.

Speaking at the merger agreement programme, Minraj Kandel, President of the National Cooperative Federation of Nepal, said that a larger cooperative could provide its services better.

"The federation is continuously advocating for the closure of saving and credit cooperatives in the municipalities," he said.

Similarly, he said that other organisations should also continue the integration campaign, and the directors should also work for the benefit of the members.

Chairman of National Cooperative Bank, KB Uprety, claimed that there was no problem in the return of savings in cooperatives and said that banks and financial institutions had spread the rumours.

He claimed that only less than 1 per cent of the cooperative organizations in Nepal have problems, and said that the problems are seen in such organizations because they do not know how to manage finances or cannot implement the laws and regulations.

Similarly, the Cooperatives Registrar of Bagmati province, Narayan Gyawali, said that there has been a problem of infiltration of middlemen in the cooperative campaign and urged all to unite and solve this problem.

Published in The Rising Nepal daily on 28 August 2022.