National Laghubitta begins joint-operation

 Lalitpur, July 15

National Laghubitta Bittiya Sanstha Limited, a company created after the merger of National Microfinance Laghubitta Bittiya Sanstha Limited and Summit Laghubitta Bittiya Sanstha Limited, has started joint transaction from Saturday, Juy 15.

Dr. Gunakar Bhatta, Executive Director of the Nepal Rastra Bank (NRB), launched the joint operation of the new microfinance institution (MFI) at a programme organised in Lalitpur on Saturday.

Speaking on the occasion, Dr. Bhatta said that there is a need to address the challenges recently seen in microfinance sector and stronger institutions would help in this drive.

He maintained that the MFIs must not shed off their social characteristics. "Likewise, adoption of the latest technology and financial instrument should also be the priority. The central bank will extend necessary help to the MF sector should there be a need in terms of technological advancement and policy facilitation," he said.

Stating that the MFIs have the potential to mobilise resources to agriculture and uplift the rural population economically, he urged them to be proactive in livelihood support programmes.

Dr. Prakash Kumar Shrestha, Executive Director of the NRB, also emphasized on adhering to the basic principles of microfinance and suggested to do business from the clients' perspective.

Highlighting the contributions of the MFIs in employment generation and poverty alleviation, he expressed his hopes that the merger would help the company to pursue sustainable business model.

Chief Executive Officer of the company, Ram Bahadur Yadav, said that following the merger, cultural and human resources integration as well as transaction and strategy integration would still remain as challenges. "Few strong institution can create reliable market and provide quality services," he said.

According to him, microfinance is a unique financial sector so the MFIs should be able to face the current challenges troubling them and move ahead with new strategy and vigour.

Rabin Sijapati, Member of the Board of Director, informed that the paid up capital of the new company has reached Rs. 1.8 billion which is the third largest in the industry. Capital fund of National has reached Rs. 2.32 billion. It has 840 employees, and has expanded services to 210,000 households in 74 districts of the country.

   Published in The Rising Nepal daily on 16 July 2023.