Apr Sun 2023 02:26:32
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Kathmandu. Rastra Bank issued a circular to the Microfinance Financial Institutions of 'D' category on gave various instructions. Rastra Bank tightened the profit distribution from the microfinance business to the shareholders. So that the share price of most microfinance listed in NEPSE fell. 45 microfinance companies had a negative circuit in NEPSE, while the share price of other microfinance companies fell by more than 5 percent.
Lately, there has been a loud noise in the House since the street protests against microfinance financial institutions. From the management of microfinance, the employees have been calling the activities against microfinance chaotic and illegal. Experts say that the National Bank has been speaking in defense of microfinance in various programs, but in practice it is doing the opposite. As a result, microfinance investors have had a negative impact, they say.
Microfinance experts say that the National Bank is adding 'ghee to the fire' due to the effect of the circular issued on February 10 on investors. In the capital market, the share price of microfinance group institutions is higher than other groups. However, investors say that the share price has fallen recently due to the strictness of the National Bank on microfinance.
Jeevan Bikas Microfinance Financial Institution was trading as a "hot cake" of the capital market a year ago. The investors of Jeevan Bikas Microfinance were also excited as the value was the highest among microfinance financial institutions.