Nepal's 15th commercial bank, the Kumari Bank Ltd (KBL), opened formally last week. The KBL promises customers from all segments of the country's economy a wide range of consumer banking products and services through innovative delivery channels, including the Internet. The KBL is banking on its large capital base, a management team comprising seasoned bankers and versatile banking software to deliver the goods. Of its authorised capital of Rs 1 billion, the bank has paid up Rs 350 million and planned a Rs 150 million public issue.

Noor Pratap JB Rana, chairman of KBL, said at the opening that at the moment Nepal's economy is not expanding commensurate with the increased volume of development activities. "A lack of investment opportunities has reduced individual savings," he added. "The reluctance of banks to accept interest deposit has further worsened the situation."

Nepal has seen a marked increase in the commercial bank ventures since the Nepal Rastra Bank liberalised the banking sector in the country. The number will increase as the Rastra Bank recently gave a Letter of Intent to three other banks.