Commercial banks like Global IME Bank, Nepal Investment Bank, Century Commercial Bank, Sanima Bank, NCC Bank and Bank of Kathmandu has sought SEBON approval for debenture issue.
Global IME Bank has sought approval for debenture issues worth Rs 3 billion, Nepal Investment Bank Rs 4 billion, Century Commercial Bank Rs 2.2 billion, Sanima Bank Rs 4 billion, NCC Bank Rs 3 billion and Bank of Kathmandu has sought approval for debenture issue of Rs 1.60 billion. Altogether, the market will soon see a flow of debenture issues worth Rs 17.80 billion.
The banks will provide 8.8-10.5 percent interest in these issues.
Few banks had sought SEBON approval in the last FY itself however they failed to get approval. Before the COVID-19 crisis, the banks were willing to provide up to 10.5 percent dividend. However, due to COVID-19, the liquidity of the banks skyrocketed in the backdrop of frozen investment opportunity which is the reason behind the low-interest offering of the banks in the debenture issue.
Out of the banks that are waiting for SEBON approval, NCC Bank is offering the highest 10.5 percent interest followed by Bank of Kathmandu and Sanima Bank with 10.25 percent, Century Bank 9 percent and Global IME and Nepal Investment Bank the lowest offering of 8.5 percent.
