Kathmandu. Bonds of Rs. 52.60 billion have been issued up to the third quarter of the current Fiscal Year 2076/77.

The Nepal Rastra Bank (NRB) said in a quarterly review of monetary policy that 18 commercial banks had issued bonds worth Rs 52.60 billion.

A bond is a fraction or unit after the total debt capital has been divided into smaller units for the general public to purchase. The company may raise debt capital by publishing a public notice with or without pledge or mortgage of the company's immovable property.

It is like a bank taking a loan from an individual or an institution. Banks issue bonds for a fixed period. The general public has to apply for the loan amount.

Banks also pay interest on bonds like deposits. But this is only for the long term. It specifies the term of the loan, interest rate, interest calculation and method of payment.

In the monetary policy, the NRB had made an arrangement that the commercial banks should issue bonds equal to at least 25 percent of their paid up capital by mid-July 2077 BS.