August 30, 2021 | Investopaper
Paid-up capital is the money provided by the shareholders into the company since the establishment. It includes the initial fund accumulated from the shareholders plus additional capital injected through right/ bonus shares or FPO as the company moves forward. Higher the capital, the greater the financial strength of the company. In times of economic difficulty, companies with huge capital tend to survive than companies with low capital.
In Nepal, ‘A’ class commercial banks should have a minimum capital of Rs 8 Arba. This is as per the directive by Nepal Rastra Bank (NRB), the regulating body of the banking and financial institutions of Nepal. Until Mid-July 2021 [Ashad’s end 2078 BS], Global IME Bank Limited is the largest commercial bank of Nepal in terms of paid-up capital. Global IME Bank has Rs 21.63 Arba in capital. NMB Bank is second to Global IME Bank with Rs. 16.32 Arba in capital. Standard Chartered Bank has the lowest capital of Rs. 8.57 Arba.
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The paid-up capital of the 27 ‘A’ class commercial banks of Nepal is shown in the table below:
Paid-up Capital (Rs.’Arba’)
|Rank||Commercial Banks||Ashad end, 2078 BS||Ashad end, 2077 BS||Ashad end, 2076 BS|
|1||Global IME Bank||21.63||18.98||10.31|
|2||Agricultural Development Bank||16.41||14.99||14.45|
|4||Nepal Investment Bank||16.25||14.25||12.87|
|5||Prime Commercial Bank||16.08||13.99||9.32|
|11||NIC Asia Bank||11.56||9.72||8.83|
|17||Rastriya Banijya Bank||10.18||9||9|
|19||Bank Of Kathmandu||9.65||8.55||8.06|
|20||Nepal SBI Bank||9.49||8.96||8.45|
|23||Century Commercial Bank||9.03||8.42||8.42|
|24||Nepal Bangladesh Bank||9||8.5||8.09|
|27||Standard Chartered Bank||8.57||8.01||8.01|
Note: Paid-up capital based on the unaudited report of the respective fiscal years.