Air tourist arrival up by 26pc in July
SANGAM PRASAIN
KATHMANDU, AUG 01 -
Tourist arrivals by air increased by 26.1 percent to 29,338 in July compared to the same month last year.
The figures released by the Immigration Office, Tribhuvan International Airport (TIA), reveal that arrivals from the South Asian region grew 31.3 percent with Bangladesh posting a rise of 88.9 percent, India 26.5 percent, Pakistan 10.3 percent and Sri Lanka 48.7 percent.
The increase in visitor arrivals from India showed sustained growth this year, except for a slight slump in April. Arrivals from India dipped 2.6 percent in April compared to the same period last year.
Visitor arrivals from other parts of Asia have also recorded a double-digit growth of 19.9 percent. China, another major source market, recorded a jump of 104.2 percent. Arrivals from Japan were up 10.7 percent, Malaysia 98.9 percent and Singapore 24.7 percent. However, arrivals from South Korea and Thailand have registered negative growths of 2.1 percent and 45 percent respectively.
Regarding long-haul markets, Europe registered an overall positive growth of 24.6 percent with the major source markets showing a positive trend.
Arrivals from Austria, Belgium, Denmark, France, Germany, Italy, the Netherlands, Russia, Switzer-land, Spain, Sweden and the UK were up 8.5 percent, 13.8 percent, 56.7 percent, 29.9 percent, 94.8 percent, 57.8 percent, 32.4 percent, 67.9 percent, 42.7 percent, 22.8 percent, 52.5 percent and 3.8 percent respectively.
Likewise, arrivals from Canada and the US also registered growths of 24.9 percent and 12.8 percent respectively. Australia showed a marginal increase in arrival figures of 0.9 percent while New Zealand posted a negative growth of 31.1 percent.
Meanwhile, arrivals by land until June 2010 totalled 60,877, up 6.2 percent compared to the same period last year. March remained the strongest of the first six months of 2010 with 18,620 arrivals, ahead of February (15,823) and January (7,492).
The Bhairahawa border point posted a rise of 10 percent with 42,190 tourists coming in followed by Kodari and Kakkarbhitta with 13,630 and 3,376 arrivals respectively in the first six months of 2010.
Aggregate visitor arrivals rose by 15 percent to 257,196 for the period between January-June 2010 (by both air and land) compared to the same period last year.
Foreign tourist departures from TIA in July reached 31,103. The number of Nepali arrivals stood at 50,309
while departures amounted
to 64,972.
Tourist arrivals by air
Month Arrivals (2009) Arrivals (2010) Change (%)
Jan 21,944 26,071 18.80
Feb 25,181 33,492 33.00
Mar 33,005 44,431 34.61
Apr 37,819 38, 694 2.31
May 25,129 26,634 5.98
June 23,222 26,997 16.30
July 23,266 29,338 26.09
Total 189,566 225,657 19.03
(Source: Nepal Tourism Board)
Sunday, August 1, 2010
Saturday, July 31, 2010
Nepal keen on NW passage
SANGAM PRASAIN
KATHMANDU, JUL 29 -
Nepal has once again shown interest in lobbying with China and India to bring into operation the air route dubbed Trans-Himalayan 2 connecting Southeast Asia, the Middle East and Europe.
Officials of the Civil Aviation Authority of Nepal (CAAN) said that Minister for Tourism and Civil Aviation Sarat Singh Bhandari had assured them that the government would use diplomatic channels to talk with both neighbours to bring the air route into operation.
If the proposed air route is opened, hundreds of international airlines will use Nepali airspace and help the country to develop as a hub, air revenue will be increased and the air distance between China and Southeast Asia will be significantly reduced benefiting the region as a whole.
CAAN officials added that the proposed route would be the shortest and could establish Nepal as an international transit point. The second international airport that the government has planned to construct in Nijgadh this fiscal
year would be the greatest beneficiary.
The proposed route is more direct, safer, economical and efficient for flights between Europe, the Middle East and East Asia. These routes will reduce the congestion of westbound traffic flows across the Bay of Bengal. The officials said that access to international air space would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. They added that international air accessibility had changed the face of Southeast Asia over the period 1979-97.
Laxman Prasad Bhattarai, spokesperson at the Ministry of Tourism, said that Nepal had been raising the issue at ICAO and other forums, but that nothing had come of it. He added that the proposed route with maximum coverage of Nepal’s air space on long distance international flights could bring great benefits to the country if they could be brought into operation.
CAAN director general Ram Prasad Neupane said that ICAO had suggested lobbying and signing memorandums of understanding with each country linked with the route. He said that Nepal must sign separate air route agreements with China and India to bring the route into operation. “The issue should be raised through diplomatic channels,” he added.
According to CAAN, Nepal has proposed three air routes -- Himalaya 1 (Bankok-Kolkata-Nepalgunj-Indek in Pakistan), Himalaya 2 (Kunming-Kathmandu-Delhi) and Himalaya 3 (Kathmandu-Nepalgunj-Delhi) at different ICAO meetings and other forums.
“The most lucrative route is Himalaya 2 which is a dream as it requires much effort by Nepal to get India and China to agree,” said Pratap Babu Tiwari, deputy director, Air Traffic Management and Air Route Department, CAAN. He added that the International Air Transport Association (IATA) was also interested in the route.
Currently, Nepal has three incoming air routes — Simara, Kakkarbhitta from Paro and the Nonim air route from China. Kathmandu-Mahendra-nagar-Delhi is the outgoing air route for international flights.
SANGAM PRASAIN
KATHMANDU, JUL 29 -
Nepal has once again shown interest in lobbying with China and India to bring into operation the air route dubbed Trans-Himalayan 2 connecting Southeast Asia, the Middle East and Europe.
Officials of the Civil Aviation Authority of Nepal (CAAN) said that Minister for Tourism and Civil Aviation Sarat Singh Bhandari had assured them that the government would use diplomatic channels to talk with both neighbours to bring the air route into operation.
If the proposed air route is opened, hundreds of international airlines will use Nepali airspace and help the country to develop as a hub, air revenue will be increased and the air distance between China and Southeast Asia will be significantly reduced benefiting the region as a whole.
CAAN officials added that the proposed route would be the shortest and could establish Nepal as an international transit point. The second international airport that the government has planned to construct in Nijgadh this fiscal
year would be the greatest beneficiary.
The proposed route is more direct, safer, economical and efficient for flights between Europe, the Middle East and East Asia. These routes will reduce the congestion of westbound traffic flows across the Bay of Bengal. The officials said that access to international air space would give Nepal a huge opportunity to develop as a hub like India, the Maldives, Pakistan and Sri Lanka in South Asia. They added that international air accessibility had changed the face of Southeast Asia over the period 1979-97.
Laxman Prasad Bhattarai, spokesperson at the Ministry of Tourism, said that Nepal had been raising the issue at ICAO and other forums, but that nothing had come of it. He added that the proposed route with maximum coverage of Nepal’s air space on long distance international flights could bring great benefits to the country if they could be brought into operation.
CAAN director general Ram Prasad Neupane said that ICAO had suggested lobbying and signing memorandums of understanding with each country linked with the route. He said that Nepal must sign separate air route agreements with China and India to bring the route into operation. “The issue should be raised through diplomatic channels,” he added.
According to CAAN, Nepal has proposed three air routes -- Himalaya 1 (Bankok-Kolkata-Nepalgunj-Indek in Pakistan), Himalaya 2 (Kunming-Kathmandu-Delhi) and Himalaya 3 (Kathmandu-Nepalgunj-Delhi) at different ICAO meetings and other forums.
“The most lucrative route is Himalaya 2 which is a dream as it requires much effort by Nepal to get India and China to agree,” said Pratap Babu Tiwari, deputy director, Air Traffic Management and Air Route Department, CAAN. He added that the International Air Transport Association (IATA) was also interested in the route.
Currently, Nepal has three incoming air routes — Simara, Kakkarbhitta from Paro and the Nonim air route from China. Kathmandu-Mahendra-nagar-Delhi is the outgoing air route for international flights.
Thursday, July 29, 2010
Paid leave may boost tourism: MoF
SANGAM PRASAIN
KATHMANDU, FEB 28 - The Ministry of Finance (MoF) is preparing bring forth a 'Paid Leave' package for civil servants aiming at promoting domestic tourism.
The government has kept the plan at a priority list.
Finance Secretary Krishna Hari Banskota said that the ministry was discussing the package initiative in order to promote domestic tourism and boost the upcoming Nepal Tourism Year 2011 (NTY-2011).
"It is not possible to implement the model immediately. However, we are mulling over the issue so that it can be launched next year," he said. According to him, firstly resource for the expenditure needs to be managed to implement the package.
Paid Leave in other countries is defined as a feature in some employee agreements that provide a 'resource' of hours that an employee can draw from to take time off from work and take leave to visit an inbound tourist across the country.
The initiative aims at promoting domestic tourism. The packages are implemented in most of the Asian and European countries where the government provides leave to its employees.
The World Tourism Organiation defines tourists as people who "travel to and stay in places outside their usual environment for more than 24 hours and not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited". It could be either domestic or international. Under the domestic tourism promotion, paid leave has become a popular global leisure activity.
However, Nepal's tourism policy does not incorporate domestic visitors as tourists, said a travel entrepreneur.
If the paid leave is implemented, about 400,000 civil servants should be incorporated to these packages by the ministry paying them to go for visit. "Thus, this issue will take some time," Banskota added.
Tourism Ministry, Nepal Tourism Board and travel entrepreneurs had been requesting the government for necessary policy and programme of paid leave to promote domestic tourism for the last three years. "If the programme is implemented, it can give boost to the tourism sector even during off seasons," said Prachanda Man Shrestha, chief executive officer of NTB.
Arjun Sharma, president of Nepal Association of Tour and Travel Agents (NATTA) said that the programme could be implemented but executing the programme at one time was difficult. "It should be started from one of the largest profit earning public enterprises," he said.
Madhav Om Shrestha, executive director of Hotel Association of Nepal (HAN) said that they had been requesting the government several times for the paid leave packages and programmes. Government is also positive about providing paid leave to the civil servants, he said.
Monday, July 26, 2010
Cheating goes ‘mobile’ in exam halls
SANGAM PRASAIN
KATHMANDU, JUL 26 -
Using chits or bringing unauthorised items into the exam hall is strictly prohibited. But, what if a student uses a mobile phone, the most high-tech method for cheating?
Modern technology has changed the way how students cheat in examinations. It gives them the opportunity to be less liable to be caught. One big help for them is the mobile internet browsing service.
Lalit Sharma (name changed), a Master’s level student appearing for his second year examinations commended the new technique. “It’s trouble-free way, no need to waste you time making a chit or running frequently to the toilet to see the guess papers and guides,” he said. Just click the question topic and see the answer that comes, he said scoffing at the examination guards. . “It is easy to dodge them,” he added.
Google is the best option for students to get the answers. It responds quickly and the information is better and more reliable than what you get from the teachers, Sharma said.
Prof. Bishwomber Pyakurel, an admirer of mobile internet, said, “Thanks to my cell phone, it took me just two minutes to know the topic being discussed,” he said during one of his discussion programmes held recently. Talking to the Post, he stressed knowledge world should be utilised in the right way. “In developed nations, students are given limited space to answer questions during their examination. So, they do not find internet copying effective,” he said.
Ratna Rajya Campus Chief Gopal Chandra Pokhrel said the trend of using internet mobiles for cheating is growing. “We found several instances at the Bachelor’s level, especially in the Science and Commerce streams,” he said. According to him, such users at the Master’s level are rare as they have limited time to answer a lot of questions. He said that the college direct the examinees not to carry mobile phones adding that even so it is not possible to confiscate the phones.
Today, nearly everyone carries mobile phones. The college issue notices urging the students not to carry mobile phones but the students hardly abide by the rules. “We cannot pressurise them or seize their mobile phones even though we know some of them are into this hi-tech cheating,” Pokhrel said.
SANGAM PRASAIN
KATHMANDU, JUL 26 -
Using chits or bringing unauthorised items into the exam hall is strictly prohibited. But, what if a student uses a mobile phone, the most high-tech method for cheating?
Modern technology has changed the way how students cheat in examinations. It gives them the opportunity to be less liable to be caught. One big help for them is the mobile internet browsing service.
Lalit Sharma (name changed), a Master’s level student appearing for his second year examinations commended the new technique. “It’s trouble-free way, no need to waste you time making a chit or running frequently to the toilet to see the guess papers and guides,” he said. Just click the question topic and see the answer that comes, he said scoffing at the examination guards. . “It is easy to dodge them,” he added.
Google is the best option for students to get the answers. It responds quickly and the information is better and more reliable than what you get from the teachers, Sharma said.
Prof. Bishwomber Pyakurel, an admirer of mobile internet, said, “Thanks to my cell phone, it took me just two minutes to know the topic being discussed,” he said during one of his discussion programmes held recently. Talking to the Post, he stressed knowledge world should be utilised in the right way. “In developed nations, students are given limited space to answer questions during their examination. So, they do not find internet copying effective,” he said.
Ratna Rajya Campus Chief Gopal Chandra Pokhrel said the trend of using internet mobiles for cheating is growing. “We found several instances at the Bachelor’s level, especially in the Science and Commerce streams,” he said. According to him, such users at the Master’s level are rare as they have limited time to answer a lot of questions. He said that the college direct the examinees not to carry mobile phones adding that even so it is not possible to confiscate the phones.
Today, nearly everyone carries mobile phones. The college issue notices urging the students not to carry mobile phones but the students hardly abide by the rules. “We cannot pressurise them or seize their mobile phones even though we know some of them are into this hi-tech cheating,” Pokhrel said.
FY to see 2nd int’l airport birth
SANGAM PRASAIN
KATHMANDU, JUL 26 -
Construction of the country's second international airport is among the projects the Ministry of Tourism and Civil Aviation (MoTCA) has planned for the current fiscal year 2010-11. Eight new projects have been proposed in addition to the projects carried over from the last fiscal.
Implementing leave tourism (paid leave), setting up a new radar at Tribhuvan International Airport (TIA), expanding tourism areas and implementing the Tourism Satellite Account are among the new projects that will be started this fiscal year.
Similarly, integrated lake conservation project, special Mt. Everest cleaning mission and converting Nepal Airlines Corporation (NAC) into a company are its other plans. All these projects have been assessed in the last fiscal year and will be accomplished in the current fiscal, MoTCA said Monday while discussing its annual progress report and new programmes at the parliamentary International Relation and Human Rights Committee.
In a bid to boost domestic tourism and the morale of civil servants, MoTCA has proposed the paid leave tourism concept. A task force has identified potential vacation spots in different parts of the country.
MoTCA has also planned to install a new radar system considering the increase in air traffic at the country's only international airport.
"TIA, which was designed to handle 1,300 passengers per hour, sometimes has to process over 2,000 passengers," said MoTCA secretary Kishore Thapa.
MoTCA has proposed expanding tourist areas to Ilam in the east and Baitadi in the west. Kathmandu, Pokhara, Lumbini, Chitwan and Lukla are the only designated tourist spots presently.
The Tourism Satellite Account will calculate separate credible and comprehensive measurements of tourism value from tourism activities and provide concrete data of tourism contribution to the country's Gross Domestic Product (GDP).
Under the integrated lake conservation project, the ministry will conserve the country's lakes making them a significant product to attract tourists.
The feasibility study for the country's second international airport at Nijgadh will be concluded after seven months. "We are planning to start construction after the study is completed," Thapa said. The contract to do the feasibility study was awarded to LMW, Korea last year. Converting Nepal Airlines Corporation into a company will also be initiated in the current fiscal year.
The ministry is working on the procedures from the last fiscal year. Likewise, MoTCA has proposed opening new peaks for commercial expeditions.
The ministry will also revise the air service agreements (ASAs) signed with European, Middle Eastern and Asia Pacific countries. Nepal currently has ASAs with 35 countries.
Tourism infrastructure development, attracting one million tourists during Nepal Tourism Year 2011 and upgrading the international airport and regional airports are among the projects being carried over from the last fiscal.
The National Planning Commission has a budget ceiling of Rs. 818.7 million (excluding the budget for NTY 2011) for MoTCA for the current fiscal year.
SANGAM PRASAIN
KATHMANDU, JUL 26 -
Construction of the country's second international airport is among the projects the Ministry of Tourism and Civil Aviation (MoTCA) has planned for the current fiscal year 2010-11. Eight new projects have been proposed in addition to the projects carried over from the last fiscal.
Implementing leave tourism (paid leave), setting up a new radar at Tribhuvan International Airport (TIA), expanding tourism areas and implementing the Tourism Satellite Account are among the new projects that will be started this fiscal year.
Similarly, integrated lake conservation project, special Mt. Everest cleaning mission and converting Nepal Airlines Corporation (NAC) into a company are its other plans. All these projects have been assessed in the last fiscal year and will be accomplished in the current fiscal, MoTCA said Monday while discussing its annual progress report and new programmes at the parliamentary International Relation and Human Rights Committee.
In a bid to boost domestic tourism and the morale of civil servants, MoTCA has proposed the paid leave tourism concept. A task force has identified potential vacation spots in different parts of the country.
MoTCA has also planned to install a new radar system considering the increase in air traffic at the country's only international airport.
"TIA, which was designed to handle 1,300 passengers per hour, sometimes has to process over 2,000 passengers," said MoTCA secretary Kishore Thapa.
MoTCA has proposed expanding tourist areas to Ilam in the east and Baitadi in the west. Kathmandu, Pokhara, Lumbini, Chitwan and Lukla are the only designated tourist spots presently.
The Tourism Satellite Account will calculate separate credible and comprehensive measurements of tourism value from tourism activities and provide concrete data of tourism contribution to the country's Gross Domestic Product (GDP).
Under the integrated lake conservation project, the ministry will conserve the country's lakes making them a significant product to attract tourists.
The feasibility study for the country's second international airport at Nijgadh will be concluded after seven months. "We are planning to start construction after the study is completed," Thapa said. The contract to do the feasibility study was awarded to LMW, Korea last year. Converting Nepal Airlines Corporation into a company will also be initiated in the current fiscal year.
The ministry is working on the procedures from the last fiscal year. Likewise, MoTCA has proposed opening new peaks for commercial expeditions.
The ministry will also revise the air service agreements (ASAs) signed with European, Middle Eastern and Asia Pacific countries. Nepal currently has ASAs with 35 countries.
Tourism infrastructure development, attracting one million tourists during Nepal Tourism Year 2011 and upgrading the international airport and regional airports are among the projects being carried over from the last fiscal.
The National Planning Commission has a budget ceiling of Rs. 818.7 million (excluding the budget for NTY 2011) for MoTCA for the current fiscal year.
Saturday, July 24, 2010
Political unrest has hit industry
SANGAM PRASAIN
JUL 15 -
Dinesh Shrestha is managing director of Pacific Commercial Company, authorized dealer of Mahindra two-wheelers in Nepal. Shrestha, who is also an executive committee member of the Federation of Nepalese Chambers of Commerce and Industry, has interests in trading, education, manufacturing and health. Sangam Prasain of The Kathmandu Post talked with Shrestha on the business environment and Pacific's business interest. Excerpts:
The Economic Survey 2009/10 shows a rise in vehicle sales. How has your company that deals in Mahindra scooters performed?
There has been a significant rise in the sale of vehicles from four-wheelers to two-wheelers. With ever increasing population and urbanisation, owning a vehicle has become a necessity. As we don't have an efficient mass transportation system in place, people living in urban areas have no choice but to go for private vehicles. This has increased the demand for two-wheelers in major cities including Kathmandu. Hence, business has been good for every automobile company this fiscal year. In our case, we've sold around 1,500 units of Mahindra scooters in the last eight months.
How many models of Mahindra scooters are available in the market?
We are currently selling the four-stroke 125 cc Mahindra Duro, 124.6 cc Mahindra Flyte and Mahindra Rodeo. Though we've recently started selling Mahindra scooters in Nepal, our market share is between 20-25 percent in the overall scooter segment.
Due to safety features, mileage and pickup, demand for scooters has been increasing gradually. Even then, sales are relatively low compared to motorbikes; but we're optimistic that they will go up.
Your group has recently entered the FMCG sector with snacks. How is the new business going, and what are the new products you are planning to launch?
We have recently launched our FMCG products under the Mum's brand in the Nepali market. Mum's brand is a processed food and snacks from India's Amrapali Group. The response so far has been positive. With snacks and processed foods becoming popular in Nepal, we aim to expand and diversify the existing product line. We want to provide customers the finest taste with the highest quality. As the Amrapali Group has recently started juice production, we'll be launching it in the Nepali market in the near future.
The government has failed to present a complete budget once again. What impact will it have on the private sector?
It shows that the economic agenda has never been a priority for our political parties. This is the second instance that the country has missed a complete budget. When the entire industrial sector is on the brink of collapse and investors are unwilling to invest in the country, a full-fledged budget was the need of the hour.
Entrepreneurs always study the budget before making their business and expansion plans. The delay in the budget will affect the entire industrial and business sector. The private sector has suggested to the government to introduce import substitution measures among other issues to narrow the trade deficit; but with the special budget, we can't think of lessening the trade deficit.
What are the major problems that the private sector is facing and which need to be addressed immediately?
Political instability has made the business climate pessimistic and spread a sense of insecurity. As in the previous years, load-shedding and labour problems have made the cost of doing business expensive. This year, we also faced difficulties in getting loans from banks due to the liquidity crunch. Despite the central bank asking commercial banks to finance the industrial sector, no bank is willing to invest. None of the banks wants to bear losses putting money in industry in this business climate.
SANGAM PRASAIN
JUL 15 -
Dinesh Shrestha is managing director of Pacific Commercial Company, authorized dealer of Mahindra two-wheelers in Nepal. Shrestha, who is also an executive committee member of the Federation of Nepalese Chambers of Commerce and Industry, has interests in trading, education, manufacturing and health. Sangam Prasain of The Kathmandu Post talked with Shrestha on the business environment and Pacific's business interest. Excerpts:
The Economic Survey 2009/10 shows a rise in vehicle sales. How has your company that deals in Mahindra scooters performed?
There has been a significant rise in the sale of vehicles from four-wheelers to two-wheelers. With ever increasing population and urbanisation, owning a vehicle has become a necessity. As we don't have an efficient mass transportation system in place, people living in urban areas have no choice but to go for private vehicles. This has increased the demand for two-wheelers in major cities including Kathmandu. Hence, business has been good for every automobile company this fiscal year. In our case, we've sold around 1,500 units of Mahindra scooters in the last eight months.
How many models of Mahindra scooters are available in the market?
We are currently selling the four-stroke 125 cc Mahindra Duro, 124.6 cc Mahindra Flyte and Mahindra Rodeo. Though we've recently started selling Mahindra scooters in Nepal, our market share is between 20-25 percent in the overall scooter segment.
Due to safety features, mileage and pickup, demand for scooters has been increasing gradually. Even then, sales are relatively low compared to motorbikes; but we're optimistic that they will go up.
Your group has recently entered the FMCG sector with snacks. How is the new business going, and what are the new products you are planning to launch?
We have recently launched our FMCG products under the Mum's brand in the Nepali market. Mum's brand is a processed food and snacks from India's Amrapali Group. The response so far has been positive. With snacks and processed foods becoming popular in Nepal, we aim to expand and diversify the existing product line. We want to provide customers the finest taste with the highest quality. As the Amrapali Group has recently started juice production, we'll be launching it in the Nepali market in the near future.
The government has failed to present a complete budget once again. What impact will it have on the private sector?
It shows that the economic agenda has never been a priority for our political parties. This is the second instance that the country has missed a complete budget. When the entire industrial sector is on the brink of collapse and investors are unwilling to invest in the country, a full-fledged budget was the need of the hour.
Entrepreneurs always study the budget before making their business and expansion plans. The delay in the budget will affect the entire industrial and business sector. The private sector has suggested to the government to introduce import substitution measures among other issues to narrow the trade deficit; but with the special budget, we can't think of lessening the trade deficit.
What are the major problems that the private sector is facing and which need to be addressed immediately?
Political instability has made the business climate pessimistic and spread a sense of insecurity. As in the previous years, load-shedding and labour problems have made the cost of doing business expensive. This year, we also faced difficulties in getting loans from banks due to the liquidity crunch. Despite the central bank asking commercial banks to finance the industrial sector, no bank is willing to invest. None of the banks wants to bear losses putting money in industry in this business climate.
Mega Bank soft launching today
SANGAM PRASAIN
*
*
*
*
JUL 23 - The much-hyped Mega Bank is making its soft launch on Friday. With Nepal Rastra Bank giving its operating license on Sunday, Mega Bank has become the 28th commercial bank in the country.
Mega Bank is the first five-star bank in the country, said its top management. Its headquarters at Kantipath has a grand look. The old British Council building has been given a complete makeover.
With a paid-up capital of Rs. 1.63 billion, the bank has been in the news for its largest promoter base. It has 1,219 promoters who have invested from Rs. 1 million to Rs. 10 million.
Mega Bank is beginning operations at a crucial time when the banking system is slowly recovering from a liquidity crunch. Real estate, one of the most attractive lending destinations for banks in recent times, is cooling down.
Chief executive officer Anil Shah said that Mega Bank would primarily focus on three sectors -- corporate banking, small and medium enterprises (SMEs) and micro finance. The bank has a specialised team for each of these three sectors.
According to CEO Shah, Mega Bank will not go for real estate and margin lending in the first quarter of its operation. "We'll not lend to real estate and do margin lending in the first quarter," he said.
Shah has an ambitious plan to open 10 branches in its first year of operation. According to him, Mega Bank will have a presence in areas where there are no other banks.
Mega Bank has identified SMEs as one of the core areas for banking. Shah, who was one of the people behind the retail banking revolution in Nepal, believes an SME revolution in the banking sector is about to come.
Mega Bank, according to Shah, will go to rural Nepal with technology as the backbone. "Our aim is not only collecting deposits from rural areas but also issuing loans," he said.
‘We will focus on rural areas’
How will Mega Bank be different from the existing ones?
Our business model is different. We'll be focusing on small and medium enterprises (SMEs) and micro finance. Our focus will be rural areas that is still out of banking services.
As a new bank, don't you think it's challenging to go rural?
Yes, it is challenging; but on the other hand, there is also great opportunity. We'll show that rural Nepal has the most potential for the banking industry for the next three-five years.
How many branches will Mega Bank open in its first year of operation?
As per our plan, we'll be opening 10 branches within the current fiscal year. In the next five years, our plan is to establish around 50 branches.
SANGAM PRASAIN
*
*
*
*
JUL 23 - The much-hyped Mega Bank is making its soft launch on Friday. With Nepal Rastra Bank giving its operating license on Sunday, Mega Bank has become the 28th commercial bank in the country.
Mega Bank is the first five-star bank in the country, said its top management. Its headquarters at Kantipath has a grand look. The old British Council building has been given a complete makeover.
With a paid-up capital of Rs. 1.63 billion, the bank has been in the news for its largest promoter base. It has 1,219 promoters who have invested from Rs. 1 million to Rs. 10 million.
Mega Bank is beginning operations at a crucial time when the banking system is slowly recovering from a liquidity crunch. Real estate, one of the most attractive lending destinations for banks in recent times, is cooling down.
Chief executive officer Anil Shah said that Mega Bank would primarily focus on three sectors -- corporate banking, small and medium enterprises (SMEs) and micro finance. The bank has a specialised team for each of these three sectors.
According to CEO Shah, Mega Bank will not go for real estate and margin lending in the first quarter of its operation. "We'll not lend to real estate and do margin lending in the first quarter," he said.
Shah has an ambitious plan to open 10 branches in its first year of operation. According to him, Mega Bank will have a presence in areas where there are no other banks.
Mega Bank has identified SMEs as one of the core areas for banking. Shah, who was one of the people behind the retail banking revolution in Nepal, believes an SME revolution in the banking sector is about to come.
Mega Bank, according to Shah, will go to rural Nepal with technology as the backbone. "Our aim is not only collecting deposits from rural areas but also issuing loans," he said.
‘We will focus on rural areas’
How will Mega Bank be different from the existing ones?
Our business model is different. We'll be focusing on small and medium enterprises (SMEs) and micro finance. Our focus will be rural areas that is still out of banking services.
As a new bank, don't you think it's challenging to go rural?
Yes, it is challenging; but on the other hand, there is also great opportunity. We'll show that rural Nepal has the most potential for the banking industry for the next three-five years.
How many branches will Mega Bank open in its first year of operation?
As per our plan, we'll be opening 10 branches within the current fiscal year. In the next five years, our plan is to establish around 50 branches.
Subscribe to:
Posts (Atom)