Credit Guarantee Fund’s Insurance Fee and Profit Surge by 51pc in Q3

Kathmandu: Due to the increase in credit investment and deposit collection of commercial banks and financial institutions(BFIs), the Deposit and Credit Guarantee Fund(DCGF) has managed to increase the security fee(insurance premium) income by almost 51 percent in the third quarter of the current Fiscal Year 2078/79(2021-22).

As per the third quarter’s financial statement published by the DCGF, the security fee income has been Rs, 2.89 billion up to Chaitra end(mid-April) of the current fiscal year. It has earned Rs 1.38 billion in the third quarter alone. The DCGF has earned more than half of the total security fee collected in the last nine months, i.e. 52 percent of the income in the three months from Magh to Chaitra.

Along with insurance premium income, net profit has also increased by 51 percent. It has earned a net profit of Rs. 1.16 billion in the third quarter. As of Chaitra end( mid-April) of the last fiscal year, it had earned a net profit of Rs. 767.56 million.

DCGF has been earning security fee after the BFIs guarantee of security up to Rs 300,000 per person for deposits collected from the general customer. The security fee has been levied at the rate of 0.16 percent of the total deposit collected in a financial year. If the BFIs fall in financial crisis or go bankrupt, the DCGF will compensate up to Rs. 300,000 per person.

Apart from this, BFIs have also secured the credit issued for animal husbandry, micro-loans, agricultural loans, educational loans, micro enterprises and export loans through DCGF.

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