Nirdhan Utthan Bank, Ltd.

BWTP Member Profile:

Nirdhan Utthan Bank, Ltd.

Address:	Himalipath, Siddharthnagar-7
City/Country:	Bhairahawa, Nepal
Contact Person:	Mr. Prakash Raj Sharma General Manager
Contact Number:	977 71 523764, 523768
Fax Number:	977 71 521647
Email Address:	nubl@ntc.net.np
Website:	http://www.nirdhan.com/

MEMBER OVERVIEW

Background:

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 Institution Act 2006, Nirdhan Utthan Bank (NUBL) provides microfinance services such as Loans, Deposits, Microinsurence and Remittance services to poor families of Nepal. The lending methodologies are individual lending based on Grameen Bank, Bangladesh model and group lending based on Self-help Group model through few specified branch offices. Read More

Vision:

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.

Mission:

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.

OUTREACH (As of YR 2010)

Number of Clients Served	126,787
Number of Active Borrowers	85,323
Female	85,323
Number of Active Depositors	126,787
Female	126,787

PRODUCTS AND SERVICES

Loan is the main product of NUBL. Loan is provided to eligible clients for any income generating activities and or to meet their social and emergency needs. General loan is the predominant product among the different kinds of loan products. In addition to general loans, there are also group fund loans, seasonal business loans, Seasonal agricultural loans, sanitary loans, Housing loans, Biogas loans, Foreign employment loans, Education Loans, Microenterprise loans and Emergency loans.

SAVINGS

NUBL requires its clients to save with most of their loan products and encourages clients to contribute to voluntary savings accounts as well. Both savings accounts give members access to funds for health, education and consumption needs either though withdrawal of voluntary savings or through group fund loans. There are two saving products offered to NUBL's clients, namely: Group Fund Savings and Personal Voluntary Savings.

MICROINSURANCE

NUBL is providing Microinsurence product that address clients' needs for risk management in addition to its savings and loan products. NUBL clients are highly vulnerable to economic shocks caused by events such as death of family member, illness, destruction of valuable asset, or a disabling injury. Nirdhan currently has three types of micro-insurance products:
Livestock Insurance
Micro-life Insurance (Social security Fund)

REMITTANCE SERVICE

This is the new product recently introduced by NUBL. Under this service the family members working abroad can send money to their relatives in Nepal. NUBL has established a relationship with established commercial banks of Nepal to provide this service. Clients and non-clients both have access to this service.

FINANCIAL INFORMATION (As of Year 2010)

(In US$)
Average Loan Balance per Borrower	$ 232.00
Average Savings Balance per Saver	$ 46.00
Total Assets	$ 26,390,797.00
Savings	$ 5,823,491.00
Equity	$ 2,629,343.00
Outstanding Loans	$ 19,120,932.33
Gross Loan Portfolio	$ 19,779,394.03

Capital/Asset ratio	9.96%
Debt to Equity ratio	90.5%
Deposits to Loans	29%
Deposits to Total Assets	22%
Gross Loan Portfolio to Total Assets	75%
Return on Assets	2.34%
Return on Equity	21.84%