Nepal Infrastructure Bank Limited, commonly known as NIFRA, is a vital financial institution in Nepal. NIFRA was established in 2008 as a specialized bank to promote economic development in Nepal through infrastructure financing.
NIFRA's primary objective is to provide financial assistance to infrastructure projects in Nepal. This includes roads, bridges, airports, and other critical infrastructure that supports the country's economic growth.
NIFRA has a strong focus on supporting infrastructure development in Nepal, with a mandate to promote economic development through infrastructure financing. The bank has been actively involved in financing various infrastructure projects in the country.
Nepal Infrastructure Bank Overview
The Nepal Infrastructure Bank Limited is a specialized financial institution established to mobilize resources for infrastructure development in Nepal.
It was established on 2000 with a paid-up capital of NPR 1 billion.
The Bank's primary objective is to promote sustainable economic growth and poverty reduction in Nepal through infrastructure development.
The Bank's key focus areas include energy, transportation, water supply, sanitation, and urban development.
It operates as a subsidiary of the Nepal Rastra Bank, the central bank of Nepal, and is governed by a Board of Directors.
The Bank has a strong commitment to sustainability and has implemented various initiatives to promote environmental and social responsibility.
Financial Performance
The Nepal Infrastructure Bank Limited's financial performance has seen a decline in recent quarters.
The bank's net profit decreased by 5.98% to NPR 1.33 billion. This is a significant drop compared to the same period of the previous fiscal year.
Net interest income declined by 6.47% to NPR 254.9 million.
The bank's net fee and commission income decreased significantly by 54.26% to NPR 10.41 million. This is a major concern for the bank.
Total operating income decreased by 6.86% to NPR 256 million.
Operating profit also declined by 5.87% to NPR 191 million, directly affecting the bank's net profit.
The bank's earnings per share (EPS) decreased by NPR 0.39 to NPR 6.16.
The price-to-earnings (PE) ratio stood at 37.01 times.
Distributable profit was NPR 707.2 million.
Despite the decline in profit, the bank's capital structure remains strong.
Frequently Asked Questions
Who is the owner of NIFRA?
NIFRA is jointly owned by the Government of Nepal, commercial banks, insurance companies, and leading public and private sector entities, with 40% stake from the general public. Its ownership structure is a collaborative effort among various stakeholders.
What does NIFRA do?
NIFRA provides long-term loans for infrastructure projects across various sectors, with repayment terms ranging from 5 to 15+ years. They cater to the financial needs of projects in multiple infrastructure domains.
Sources
- https://shyamkumarkc20.com.np/banking/NIFRA
- https://kathmandupost.com/columns/2024/04/06/viability-of-the-infrastructure-bank
- https://www.nepsetrading.com/news/-nepal-infrastructure-banks-nifra-financial-performance-decline-in-profit
- https://kathmandupost.com/money/2019/03/07/nepal-infrastructure-bank-opens
- https://www.nepsebajar.com/details/ipo/nepal-infrastructure-bankordinary
Featured Images: pexels.com
