Microfinance Institutions have made tremendous strides in Nepal over the years and it has become a household name in view of the multi-pronged benefits received from microfinance services by the deprived sector especially women folks. It is emerging as integrated and effective services for the development of disadvantaged group of communities. More than eighty percent of Nepali people live in rural/semi rural areas. Twenty Five percent of population in Nepal lives below poverty line. In this context, access to financial services for the deprived and disadvantaged community people is paramount.
People especially living with poverty at the marginal level are deprived of accessing financial services for startup or the promotion of income generating activities. It is a challenge of today to provide with sustainable financial services to the people of the rural/semi rural communities for their livelihood. In Nepal, NGOs were also used as financial intermediary institutions for operating microfinance finance services. Till date, all of the FI-NGOs engaged in microfinance services have been converted to “D” Class Microfinance Finance Institutions under Bank & Financial Institution Act-2073. As such, Nepal Rural Development Organization (NeRuDO), the pioneer FI-NGO of Nepal which was promoted by Grameen Trust of Father of Microfinance Prof. Mohammed Yunus with soft loan of US$ 20,000 and technical services in 2054 B.S. as his first international endeavor, has also been converted into a ‘D’ Class MFI under banner of “Rastra Utthan Lagubitta Bitiiya Sanstha Ltd. (RULBSL)” as per the directive of Nepal Rastra Bank (NRB) under Company Act-2063 and BAFIA-2073 and continuing microfinance services in the said new name and status since 2075.11.08. The registered office and headquarter of this National Level Microfinance Bank is located at Sanga, Banepa -13, Kabhre Palanchowk, 20 k.m. east from Kathmandu.
Capital structure of Rastra Utthan Laghubitta Bittiya Sanstha Limited as follows:
| Authorized Capital | Rs. 500 million |
| Issued Capital | Rs. 260 million |
| Paid Up Capital | Rs. 175 million |
The Rastra Utthan Laghubitta Bittiya Sanstha Limited have Rs. 500 million authorized capital at the beginning. This capital is divided into 5,000 thousand equity shares of Rs. 100 each. Issued Capital is Rs 260 million, Paid up capital Rs.175 million. After public issue, the paid up capital will reached to Rs. 260 million.
Three institutions namely NeRuDO, Rastriya Banijya Bank Ltd, a state owned commercial bank and Prabhu Bank Ltd, a private sector commercial bank and 36 individuals are promoters of the RULBSL.
Share Composition
| S.N. | Promoters | Number of Shares | Amount NRs. ‘000 | % of Share |
| 1 | NeRuDO | 750000 | 75000000 | 28.85 |
| 2 | Rastriya Banijya Bank | 550000 | 55000000 | 21.15 |
| 3 | Prabhu Bank | 300000 | 30000000 | 11.54 |
| 4 | Individuals Promoters | 150000 | 15000000 | 5.77 |
| 5 | General Public | 850000 | 85000000 | 32.69 |
| Total | 2600000 | 260000000 | 100% | |
The Board comprised of 7 members from various shareholder groups. As provided in the articles of association of the bank, the representation in the board of Directors would be as follows:
| Nominees of Promoters including professional expert | 5 |
| Representative of Public (After public issue) | 2 |
| Total | 7 |
Until the shares are issued to the general public, the promoter will be having all 5 nominations among qualified themselves whose brief description is presented below:
Board of Directors
| 1 | Tek Raj Joshi | Chairman | Representative of Rastriya Banijya Bank Ltd. |
| 2 | Pradeep Kumar Timilsina | Director | Representatives of NeRuDO |
| 3 | Chiranjeevi B.C. | Director | Representative of Prabhu Bank Ltd. |
| 4 | Rita Sapkota Paudel | Director | Individual Promoter |
| 5 | Pralhad Man Mali | Director | Independent |
RULBSL aims to upscale the financial status of the disadvantaged groups of people by providing them with easy access to finance and enhance their business skills and grow their enterprises at optimum level. The specific objectives of the RULBSL as hereunder:
