Business»
NRB to offload its stakes in companies
KATHMANDU, AUG 03 -
Nepal Rastra Bank (NRB) is selling its shares in the Nepal Stock Exchange (NEPSE), Rastriya Beema Sansthan (RBS) and Sudurpaschimanchal Grameen Bikas Bank (SGBB) during this fiscal year.
The central bank’s board has decided to unload these stocks as per its policy of gradually divesting its stake in other institutions in the financial industry. The NRB Act has provisioned that the central bank would reduce its stake in any other institution to below 10 percent. NRB has a 34 percent stake in NEPSE, 70 percent in SGBB and 55 percent stake in the life insurance division of RBS.
“However, we have not decided the modality of divesting our shares in these institutions,” said a senior NRB official. “The move was made so that the central bank would not have a major say in the institutions which it has to regulate and supervise.”
An NRB official said that the central bank would sell its shares in these institutions to buyers who meet specific criteria including having tax clearance.
The central bank has divested its shares in Manakamana Development Bank which was originally known as Cottage and Small Industry Development Bank, Purbanchal, Madhyamanchal and Paschimanchal Grameen Bikas Bank. There are still many institutions in which NRB has a stake including Deposit and Credit Guarantee Corporation and Credit Information Bureau, Nepal Development Bank which is in liquidation, Rural Micro Finance Development Centre, Agriculture Service Project Centre and Citizens Investment Trust.
Posted on: 2010-08-04 07:35
Headlines
Advertisements
