Largest Branch Network, The only MFI in Nepal Which has Covered 75 of 75 Districts of Nepal.
Nirdhan Utthan Bank Limited, “the bank for upliftment of the poor” is a microfinance bank established in November 1998 under Company Act of Nepal 1997 (now Company Act 2006). Nepal Rastra Bank, the Central Bank of Nepal, granted a license in April 1999 to undertake banking activities under the Development Bank Act 1996. It started its formal operation from July 1999. Now, operated under Bank and Financial Institutions Act 2006, Nirdhan Utthan Bank Limited (NUBL) provides microfinance services such as Loans, Deposits, Micro-insurance and Remittance services to low income families of Nepal. NUBL follows group lending based on Grameen Bank, Bangladesh model as well as group lending based on NUBL developed Self-Relaint Group model through a network of 178 branch offices spread over all 75 districts of Nepal.
Though, legally established as a company in 1998, the operation of NUBL is a continuation of microfinance services provided by an NGO called “NIRDHAN” which was providing microfinance services since March 1993. The story behind the establishment of “NIRDHAN” starts from 1986 when Late Dr. Harihar Dev Pant, then senior officer with the Central Bank of Nepal visited Grameen Bank in Bangladesh. This visit inspired him to launch microfinance program in Nepal resulting the birth of “NIRDHAN” or “People Without Money” in 1991. NIRDHAN began its microfinance operations in March 1993.
NIRDHAN, as an NGO had a limited recourses and capacity to satisfy unmet demand of poor people in different part of the country. This resulted the establishment of NUBL as a Company where NIRDHAN NGO became a lead promoter of the bank. In July 1999, NIRDHAN transferred all microfinance operations to NUBL. Strategic reasons for promoting NUBL are:
The vision of Nirdhan Utthan Bank is to be a bank with a social conscience that enables poor to contribute equally to a prosperous, self-reliant rural society through self-employment and social awareness, and help to reduce poverty in Nepal.
The mission of Nirdhan Utthan Bank is to extend financial services and social awareness to the poor in under-served and un-served areas of Nepal in a sustainable manner.
The primary goals of Nirdhan Utthan Bank are to:
NUBL, being a national level microfinance institution, can operate all over the country. As of mid- November 2016, it has covered all 75 districts of Nepal through 178 branch offices. Out of 3,915 Village Development Committees (VDCs), it has reached 1,874 VDCs/Municipalities spread over plain Trai, Hill & Mountain regions of Nepal.
The Board of Directors (BoD) of NUBL comprises seven members, one representing individual promoters, three representing institutional promoters, two representing general public and one independent director. The BoD meets at least 12 times a year and takes policy decisions to pursue the objectives of the bank. The Chairperson of the Board is elected by the board members among themselves. The BoD is responsible to the general meeting of shareholders who meet generally once a year in Annual General Meeting (AGM). The composition of BoD is as follows:
Chairperson, Representing Nirdhan NGO
Director, Representing, General Public
Director, Representing, Everest Bank Ltd.
Director, Representing, General Public
Director, Independent Director
Director, Representing Nabil Bank.
The bank is headed by Chief Executive Officer (CEO) who works as Executive Chief of the bank. The CEO sets vision and strategies and reviews operations carefully. The Chief Executive Officer (CEO) supervises the departmental activities and works in closely with Deputy General Manager. The bank has eight departments at its Central Office, which includes: Human Resources Management Department, General Administration Department, Operation Department, Internal Audit Department, Planning, Monitoring and Research Department, Accounts and Fund Management Department, Training and Development Department, and Information and Technology Department. The executives are as follows:
Chief Executive Officer
Deputy General Manager
Assistant General Manager
Nirdhan Utthan Bank recruits new clients who fit the following targeting criteria for its group based financial services:
Nirdhan Utthan Bank has established strategic alliances with the following international and national organizations:
Currently, Nirdhan Utthan Bank Ltd. is working together with following national and international organizations:
The authorized capital and issued capital of Nirdhan Utthan Bank Limited is Rs. 1.00 billion. As of January, 2016 the paid-up capital is Rs. 500 million. The distribution of shares is as follows:
|Shareholders||Amount||% of Total paid-up Equity|
|NIRDHAN (The mother NGO)||65,762,823||10.96%|
|Himalayan Bank Limited (A Commercial Bank)||67,339,559||11.22%|
|Nabil Bank Limited (A Commercial Bank)||83,070.174||13.85%|
|Everest Bank Limited (A Commercial Bank)||67,339,559||11.22%|
|Grameen Trust Bangladesh||21,424,988||3.57%|
|Private Sector Individuals||69,219,660||11.54%|
|International Finance Corporation (IFC)||45,261,616||7.54%|
|General public including clients and staffs||180,581,622||30.10%|
The NIRDHAN, Himalayan Bank Limited, Nabil Bank Limited, Everest Bank Limited, Grameen Trust Bangladesh and private sector individuals are promoters of the bank.
The source of fund of NUBL is shareholder’s equity, client saving and deposit and borrowing from commercial banks and financial institutions.