Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Nepal Rastra Bank (NRB) on Monday issued a circular tightening different provisions to banks and financial institutions (BFIs). Below are the major points to know:
1. General Loan Loss Provision – 1.3% instead of 1% for FY 2077/78 and onwards ( Gross Industry Effect : 11 Billion LLP Expenses Increased )
2. Grace period of 1 Year can be added to Top Up Facility of 10% to Term Loan and 20% to Revolving Loans provided to COVID Impacted sector, Subject to 5% LLP,
3. Quarterly Unaudited Financial Publication time period for Q4 has extended to Shrawan end from 15th Shrawan,
4. Cash Dividend restrictions ( Same as Last FY) : 30% of Distributable Income or Average Deposit Rate Which ever is lower / DPS Maximum 5%, No Cash Dividend,
5. Waiver in Compulsory 3% Staff Training Expenses ( Shortfall ) Provisioning requirement for FY 2077/78,
6. Banks can adjust Interest Recovered with Bhadra 15th 2078 as Interest Income Realized in FY 2077/78 ( No need to allocated Regulatory Reserve or that can be consider for distribution)
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
