IFIC buys majority stake in Nepalese bank

Bangladeshi private commercial bank IFIC is all set to buy a majority stake in Nepal Bangladesh Bank Limited, a leading commercial bank in the land-locked Himalayan state.

“The IFIC will purchase a 51 per cent share in the bank and take the responsibility of operating it,” said Mohammad Lutfar Rahman, chairman of Nepal Bangladesh Bank Limited.

As many as 42 per cent shares had already been purchased and the remaining 9 per cent would be bought very soon, he added.

Lutfar was appointed the chairman of Nepal B in February this year. Lutfar was the first Bangladeshi national to become the chief of Bangladesh Bank foreign bank.

A fully general commercial bank, not only limited to dealing with business between Bangladesh and Nepal, Nepal Bangladesh Bank has a bright future as it made a profit of Nepalese Rs. 135 crore last year, Lutfar said.

Lutfar Rahman said that they started investing the money abroad after obtaining formal permission of the Bangladesh Bank. The foreign currency was transferred from the Bangladesh Bank to the Reserve Bank of Nepal.

Currently, the bank has a total of 21 branches spreading across Nepal.

It has plans to increase the number of branches to 26 very soon. The Nepal Bangladesh Bank Limited was established in 1994, in collaboration with IFIC.

Earlier, the IFIC held a minority stake in the foreign bank. The bank was launched with the goal of becoming the bank for everyone in Nepal.

Over the years, it succeeded in increasing the paid up capital to Rs. 2 billion. It is headquartered in New Baneshwor, Bijuli Bazar, Kathmandu. With a network of 21 branches spread across Nepal, the Nepal Bangladesh Bank has a chain of 28 ATMs.

The bank also provides holiday banking and has launched services like e-banking, mobile banking, e-top-up service, branchless banking and other e-products.

It has also launched a special deposit product for women.

According to sources,

the bank has made its services available to almost all the top business houses.

Nepal’s top exporters and importers have relationships with the bank with a substantial volume of foreign business, which has enhanced the bank's popularity in the international trade font.

News Source:The Independent Bangladesh

 Dated:17-Sep-2013