A development bank in the lake city earned profit of more than Rs 90 million, while the other managed to raise its profit by 90 percent.
Muktinath Development Bank registered profit of Rs 90.75 million in 2012/13. Bharat Raj Dhakal, CEO of the bank, told Republica that the bank´s profit increased by 30 percent in 2012/13 compared to 2011/12. [break]
Similarly, profit of Shangrila Development Bank (SDB) increased by 80 percent to Rs 80.5 million in 2012/13. “We managed to increase our profit considerably by reducing unnecessary expenditures and expanding our services,” Dinesh Thakali, CEO of SDB.
City Development Bank (CDB) has also managed to raise its profit by 26 percent compared to 2011/12. The bank earned Rs 70.15 million in profit in the recently concluded fiscal year. “We became successful in earning more profit by increasing our investment in productive sectors,” Bishwo Mohan Adhikari, CEO of City Development Bank, said. “Nepal Rastra Bank (NRB) had directed development banks to lend 3 percent of total lending in productive sectors. We managed to invest 7 percent of our total lending in the agricultural sector.”
Metro Development Bank saw its profit rise by 90 percent to Rs 20.12 million in 2012/13. The bank´s lending increased by 62 percent in the review year.
Another development bank in the lake city, Gandaki Development Bank, saw its profit rise by 47 percent to 50.70 million during the review year. “Our main focus in 2012/13 was tourism sector. We also invested huge amount of money on housing sector,” said Chhabindra Sharma, CEO of Gandaki Development Bank,
Dhakal of Muktinath Development Bank said development banks in Pokhara started making more profits after they increased their investment in micro-finance and agriculture sectors.
Commenting on rise in profits of development banks in Pokhara, Rishikesh Bhatta, manager of Nepal Rastra Bank, Pokhara, said market expansion and control of bad debts are the major reasons behind rise in profit.
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