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Wednesday, January 1, 2014

History of Nepalese banking system and Mr. Thakur Singh Kathayat

The initiation of formal banking system in Nepal commenced with the establishment in 1937 of Nepal Bank Limited (NBL), the first Nepalese commercial bank. The oldest bank of Nepal, Nepal Bank Ltd (NBL) was inaugurated by Late King Tribhuvan Bir Bikaram Shah Dev on 1994 B.S. Kartik 30, Monday 5:15 pm (1938 A.D.). NBL's authorized capital was Rs. 10 million (1 crore) & issued capital Rs. 2.5 million (25 lakh) of which paid-up capital Rs. 842 thousand with 10 shareholders, most of them Ranas. Out of 25000 equity shares of Rs.100 face value, 40% was subscribed by the government & balance was offered for sale to the private sector. The preliminary expenses of Rs.20,000 was occurred. The total deposit in the first year was Rs.17,02,025 divided into current account Rs.12,98,898, fixed account Rs.3,88,964 & saving account Rs.14,163. The total assets at the end of the first year was Rs.28,40,000 with net profit of Rs. 99,000 & the loan disbursed & outstanding at the end of the first year was Rs.19,85,000.There were only 12 employees & the first director was Commanding General Bahadur Shumsher Jung Bahadur Rana(1994/7/30-1996/3/25). The first chief manager was, Mr. Thakur Singh Kathayat. The logo of the bank was prepared by Late Balkrishan Sama. The first branch of NBL was Kathmandu Banking Office. The country’s central bank, Nepal Rastra Bank (NRB) was established in 1956 by Act of 1955, after nearly two decades of NBL having been in existence. A decade after the establishment of NRB, Rastriya Banijya Bank (RBB), a commercial bank under the ownership of Government of Nepal (G/N) was established.

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