According to the bank website, the proposed project involves a debt investment in Nirdhan Utthan Laghubitta Bittiya Sanstha Limited (“Nirdhan” or the “Bank”, formerly known as Nirdhan Utthan Bank), operating in Nepal with a borrower base of more than 338 thousand women borrowers and a loan portfolio of approximately US$155 million as of January 2019. Nirdhan is a leading retail Microfinance Institution (MFI), and provides microfinance services such as loans, deposits, micro-insurance and remittance services to low income households of Nepal. Nirdhan follows the Joint-Liability Group (JLG) lending model. IFC’s proposed investment will help the company to expand microfinance, including to Very Small Enterprises (VSEs), in the underserved regions and population segments in Nepal.
According to IFC, Nirdhan was set up in 1998 by Dr. Harihar Dev Pant. The Bank is a listed entity, listed on Nepal Stock Exchange and 49% shareholding is held by public. Institutional investors and promoters hold 51% shareholding in the Bank, including 3 commercial banks- Nabil Bank Limited, Himalayan Bank Limited, and Everest Bank Limited that together hold 24.62%, Nirdhan NGO and Grameen Trust Bangladesh (11.01%), IFC (7.54%) and the remaining 7.83% by private individuals.
Nirdhan Utthan Laghubitta Bittiya Sanstha Limited
Janardan Dev Pant, CEO
Nirdhan Bhawan Bhagwatibahal, Naxal -1 Kathmandu, Nepal
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