KATHMANDU, DEC 10 - 2012
Deposit and Credit Guarantee Corporation (DCGC) has asked for Rs 500 million from the government to increase its paid-up capital to Rs 1.5 billion. The paid-up capital is planned to be boosted to Rs 2 billion in the next fiscal year.
DCGC, which has insured deposits worth Rs 216.8 billion of around eight million depositors, has been seeking funds from the Finance Ministry to enlarge its financial strength.
“As it is part of increasing the paid-up capital of DCGC to Rs 2 billion eventually, we expect the government to provide the money soon,” said Bishnu Babu Mishra, manager of DCGC.
All the commercial banks, development banks and finance companies have insured their individual deposits up to Rs 200,000 at DCGC. The government gave the corporation Rs 500 million in the last fiscal year.
DCGC has been insuring deposits up to Rs 200,000 held at banks and financial institutions since the last two years to secure them if they should get into trouble.
Deposit insurance was seen as being essential after Nepal Development Bank was liquidated in 2009.
After DCGC entered the business of insuring deposits, its earnings have also increased. In the last fiscal year, its net profit stood at Rs 200 million, up from Rs 60 million in the previous year. It expects its profit to rise to Rs 500 million in this fiscal.
Before DCGC started deposit insurance, its revenue had been declining with the phasing out of primary sector lending.
Source: The Kathmandu Post
Deposit and Credit Guarantee Corporation (DCGC) has asked for Rs 500 million from the government to increase its paid-up capital to Rs 1.5 billion. The paid-up capital is planned to be boosted to Rs 2 billion in the next fiscal year.
DCGC, which has insured deposits worth Rs 216.8 billion of around eight million depositors, has been seeking funds from the Finance Ministry to enlarge its financial strength.
“As it is part of increasing the paid-up capital of DCGC to Rs 2 billion eventually, we expect the government to provide the money soon,” said Bishnu Babu Mishra, manager of DCGC.
All the commercial banks, development banks and finance companies have insured their individual deposits up to Rs 200,000 at DCGC. The government gave the corporation Rs 500 million in the last fiscal year.
DCGC has been insuring deposits up to Rs 200,000 held at banks and financial institutions since the last two years to secure them if they should get into trouble.
Deposit insurance was seen as being essential after Nepal Development Bank was liquidated in 2009.
After DCGC entered the business of insuring deposits, its earnings have also increased. In the last fiscal year, its net profit stood at Rs 200 million, up from Rs 60 million in the previous year. It expects its profit to rise to Rs 500 million in this fiscal.
Before DCGC started deposit insurance, its revenue had been declining with the phasing out of primary sector lending.
Source: The Kathmandu Post
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