April 2012

Partner Description:

Nirdhan Utthan Bank Ltd. (NUBL) is a regulated microfinance institution licensed by the central bank of Nepal as a National Level class “D” microfinance development bank. As a public limited company, 30% of the equity is held by the general public, and 70% is held by promoters. These promoters include are Nirdhan NGO, Nabil Bank Ltd., Himalayan Bank Ltd., Everest Bank Ltd., Grameen Trust Bangladesh and private individuals.

NUBL was incorporated in October 1998 and Nirdhan NGO transferred its microfinance activities, including overall infrastructure, staff, loan portfolio and most of its assets to NUBL in July 1999. Today, it has paid-up capital of more than 174 million Nepalese rupees, and serves more than 140,000 clients through five regional headquarters and 92 branch offices in 37 districts.

NUBL’s mission is to extend sustainable financial and social services to the poor in underserved areas of Nepal. To achieve this object
ive, it has set the following goals:

1) Adopt a proven service delivery mechanism to reach the maximum number of poor households that have the potential for financial viability.

2) Develop a well-managed institution with ethical staff and practices.

3) Enhance women’s “self respect” through social awareness, savings services, and a regular, well-designed repayment schedule.

NUBL loans to individuals on the basis of group solidarity without requiring collateral. For micro-enterprise loans, the institution requires collateral. NUBL also provides micro-insurance and remittance services.

The bank has created a solid strategic alliances with various international institutions like the World Bank, Plan International, MIX Market, Save the Children, Mercy Corps, Grameen Trust, the United Nations Development Programme, and more. On a national level, NUBL works with the Nepal Microfinance Development Bankers Association and the Centre for Microfinance -- networks that have allowed NUBL to recruit staff and clients.

NUBL has an eight-member board. Currently, there are six members: Executive Chair Dr. Harihar Dev Pant, Mr. P KPradhan from EBL, Professor Fatta Bahadur KC, and Mr. Top Bahadur, Mr. Krishna Gopal Manandhar from Nabil Bank Ltd., and Mr.Balkrishna Subedi as
independent director. The board sets strategies and long-term goals. Day-to-day operations are headed by General Manager Mr. Prakash Raj Sharma. NUBL currently employs about 480 workers.

NUBL’s Mission:
To extend sustainable financial and social services to the poor in underserved areas of Nepal.

Repayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Aug 3, 2012 Oct 12, 2005
Total Loans $21,775 $591,510,100
Amount of raised Inactive loans $0 $801,625
Number of raised Inactive loans 0 640
Amount of Paying Back Loans $19,550 $116,887,025
Number of Paying Back Loans 34 124,445
Amount of Ended Loans $2,225 $473,821,450
Number of Ended Loans 6 601,157
Delinquency Rate 59.08% 4.15%
Amount in Arrears $6,658 $3,134,116
Outstanding Portfolio $11,270 $75,521,492
Number of loanDelinquent 34 14,058
Default Rate 0.00% 1.13%
Amount of Ended Loans Defaulted $0 $5,346,749
Amount of Ended Loans $2,225 $473,821,450
Number of Ended Loans Defaulted 0 16,817
Currency Exchange Loss Rate 1.42% 0.09%
Amount of Currency Exchange Loss $309 $538,403
Refund Rate 0.00% 0.77%
Amount of Refunded Loans $0 $4,537,625
Number of Refunded Loans 0 5,064

Loan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans to Women Borrowers 100.00% 74.18%
Average Loan Size $544 $418
Average Individual Loan Size $544 $655
Average Group Loan Size $0 $1,828
Average number of borrowers per group 0 8
Average GDP per capita (PPP) in local country $1,500 $3,429
Average Loan Size / GDP per capita (PPP) 36.29% 12.20%
Average Time to Fund a Loan 0.08 days 5.6 days
Average Dollars Raised Per Day Per Loan $7,060.11 $74.70
  Average Loan Term 15.16 months 10.35 months

Journaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 0 296,133
  Journaling Rate 0.00% 42.36%
  Average Number of Comments Per Journal 0.00 0.08
  Average Number of Recommendations Per Journal 0.00 1.87

Borrowing Cost Comparison (based on 2012 data)

    This Field Partner Median for MFI's in Country All Kiva Partners
  Average Cost to Borrower 18% PY 22.00% PY 33.27% PY
  Profitability (return on assets) 0.5% 2.8% -1.45%
  Average Loan Size (% of per capita income) 53.90% 32.00% 40.88%

Country Fast Facts

Field Partner Staff

Iswar Attreya
Abhinab Basnyat
Manoj Yadav