Kathmandu: In the first quarter of the current Fiscal Year, the Deposit and Credit Guarantee Fund(DCGF)’s income has increased by 63 percent. The fund has earned a security fee of Rs 1.1274 billion in the first quarter of the current fiscal year 2078/79. In the first quarter of 2077/78, the income from security fee was only Rs. 688.28 million.
In the first quarter of the current Fiscal Year, the Fund has paid Rs. 539.24 million to the banks and financial institutions as claim.
The fund has earned interest income of Rs. 327 million from fixed deposits alone. As per the first quarter progress report published by the fund, it has invested Rs. 17.14 billion in fixed deposits and development bonds.
Along with the increase in the security fee of the DCGF, the profit has also increased significantly. It has made a net profit of Rs. 955 million in the first quarter. Net profit was Rs. 639.9 million in the corresponding period of the last year.
The fund, has a paid-up capital of Rs 10 billion and has reserves, funds and accumulated profits of Rs. 7.25 billion. As of the first quarter of last FY, the reserve, fund and accumulated profit was Rs. 6.29 billion only.
The DCGF has been earning security fee from banks and financial institutions against the guarantee of minimum security of deposits up to Rs. 300,000 per person. Apart from this, the security fee is being earned even after guaranteeing the security of micro loans and other forms of loans.