637 local units get commercial bank branches so far

Kathmandu, Aug. 21:

By the end of the first month of the current fiscal year, about 84.6 per cent local units have the presence of at least a branch of a commercial bank.

Of the 753 local units, 637 now have banking reach while 116 are still out of financial inclusion, according to the Nepal Rastra Bank (NRB).

In the last 38 days, on an average two branches were established everyday as commercial banks’ expanded their services to 81 additional local units.

Till July 8, the number of local units having at least a banking branch was 556.

Province No. 5 and 2 has the highest financial reach with more than 90 per cent local units, having the presence of commercial banks in 99 and 123 local units respectively. There are 136 local units in Province No 2 and 109 in Province No. 5.

Karnali province has the poorest banking reach with banks' presence in 70.9 per cent local units, in Province 7 71.6 per cent local units have bank access.

Executive Director of the NRB Nara Bahadur Thapa said that the central bank was in communication with the commercial banks and each local unit would have banks by the end of current fiscal year 2018/19.

By the end of the last fiscal year, there were 6,651 branches of banks and financial institutions across the country.

“Primary objective of the Monetary Policy of the current fiscal year is to support the government to achieve 8 per cent economic growth target. Expanding the banking services to the local units can be instrumental to achieving this target,” he said.

According to the Financial Comptroller General Office, the absence of banks in the local units has affected the transfer of funds and timely updates of the expenditure of budget.

Commercial banks’ branches

Province	Local Units	Banks’ Presence	Remaining
One	137	115	22
Two	136	123	13
Three	119	107	12
Gandaki	85	74	11
Five	109	99	10
Karnali	79	56	23
Seven	88	63	25
Total	753	637	116

Source: NRB

Published in The Rising Nepal daily on 22 August 2018.