The plan has been designed on assumption that economic situation in the country would significantly improve in the next five years and leading economies in Asia would be interested in investing here.[break]
“We are currently looking at India and China as we believe these countries will contribute to more than 70 percent of the foreign direct investment coming into Nepal,” Mega Bank CEO Anil Keshary Shah told Republica on the sidelines of an event organized to officially announce opening of 15 branch offices.
In this regard, the bank plans to enter into partnership with leading financial institutions in the two countries so that their clients can use Mega as a channel to remit money to Nepal and gain access to Mega´s funds if needed.
“We hope such partnerships will expand the scope of the bank in the international arena,” Prof Dr Madan Dahal, chairman of the bank, told media persons at the event.
Mega, which commenced operation in July 2010, has been trying to establish itself as one of the leading and model banks in the country by 2015. This message was relayed during the bank´s annual general meeting held in January and was reiterated at the event held on Tuesday.
To reach that height, the bank has been extensively opening branch offices and extending its network throughout the country. Currently, the bank has 28 branch offices, including 15 that were officially inaugurated on Tuesday. Although most of these branches are located in urban centers, the bank claims it has been extensively extending its branchless banking service, under which rural customers can deposit and withdraw money from their doorsteps.
“But unlike other banks that collect deposit from rural areas and extend them as loans to urban customers, we try to issue as much credit as possible to rural clients through cooperatives established in the locality,” Shah said.
An example of this, according to Shah, is credit extended by the bank to locals of Syafrubesi in Rasuwa to purchase initial public offering (IPO) shares of Chilime Hydropower.
“There are countless other examples in which we have helped rural people to purchase cattle or set up shops,” said Shah, who has a firm belief that micro funds extended to rural people can raise their living standard. “I hope these efforts can help attain our dream of financial inclusion.”
Mega Bank Facts:
Established: July 2010
Customers: 67,000+
Deposit: Rs 9.4 billion
Loans: Rs 8.8 billion
Average Deposit: Rs 150,000
Average Loan: Rs 2.1 million
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