Economy

Banks in expansion spree in Janakpur

Published by Octron on August 11, 2009

Despite a decline in the financial transactions, commercial banks have been opening offices at a greater pace in Janakpur.
KIST Bank was the latest bank to open its branch in Janakpur. On Monday, its 27th branch was opened. Siddhartha Bank , Jyoti Bikash Bank and Sunrise Bank are also preparing to open their branches here.

Among the banks which already have their branches in Janakpur include Everest Bank, Nepal SBI Bank, Nepal Investment Bank, Bank of Kathmandu, Laxmi Bank, NIC Bank and Nepal Bangladesh Bank.

The opening of new bank branches in Janakpur has increased investment opportunities for local residents. These banks have also made it easier for the locals to borrow as well deposit money at much reliable financial institutions.

Chairman of the Nepal Chamber of Commerce Dhanusha, Shyam Prasad Shah, said that another reason behind the establishment of so many banks is the fierce competition among them. He added that the banks have been providing reasonable interest rates to the locals here.

Dharmendra Yadav, branch chief of KIST Bank in Janakpur said, “The banks had been apprehensive about opening branches in the Tarai, but improving living standards and stabilized condition convinced them to open branches here in Janakpur.” However, few banks have also fled the area in search of safer places due to the increasing insecurity.

Entrepreneurs have been motivated to invest due to the increasing number of bank branches, and they say that the opportunities for investment have also increased. Since large number of people from this area have gone for foreign employment, Janakpur is a good location for the banks to do remittance business.

Source: Kantipur

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