Bachan Saving and Credit Co-operative Ltd.

13/08/2026

02/08/2026

Bachan SACCOS Approves Two Affordable Loan Schemes for Members

Bachan Savings and Credit Cooperative Society Ltd. has approved two new loan schemes at an annual interest rate of 7 percent to support the financial needs, entrepreneurship, self-employment and income-generating activities of its members.
The decision was made unanimously at the 106th meeting of the Board of Directors held on 26 July, 2026at the cooperative’s office in Dillibazar, Kathmandu. The meeting was chaired by the cooperative’s Chairperson, Mr. Mukunda Raj Khanal.
The Board approved the Cooperative Business/ Agriculture Easy Loan and the Cooperative Personal Easy Loan in accordance with the Cooperative Act, 2017, as amended, the cooperative’s bylaws, and its loan investment and recovery policy.
Approved Loan Facilities
Cooperative Business Easy Loan
This loan is intended to encourage members to invest in productive businesses, agriculture and other income-generating activities.
The major terms are:
• Annual interest rate: 7 percent
• Repayment period: Up to five years
• Service charge: 1 percent
• Loan amount: Rs. 10,000 to Rs. 1,000,000
The scheme aims to promote entrepreneurship and self-employment, support business expansion and agricultural production, increase members’ income and economic independence, improve their living standards, and contribute to sustainable economic development through the cooperative.
Cooperative Personal Easy Loan
This loan is designed to help members meet urgent and short-term personal financial needs at an affordable interest rate.
The major terms are:
• Annual interest rate: 7 percent
• Repayment period: Up to six months
• Service charge: 1 percent
• Loan amount: Rs. 10,000 to Rs. 1,000,000
Conditions for Obtaining the Loans
Members wishing to apply for either loan facility must meet the following conditions:
1. The applicant must have completed at least three months of membership in the cooperative.
2. The applicant must have obtained full membership.
3. Interest and instalments must be paid regularly on a monthly or quarterly basis.
4. Collateral acceptable to the cooperative must be provided.
5. The borrower must purchase shares equivalent to at least 5 percent of the approved loan amount.
6. The applicant must be making regular monthly savings.
7. Loan insurance will be compulsory.
8. The applicant must have a reliable source of income from a business, employment or another activity sufficient to repay the loan.
9. Where income is not immediately available, the Board may approve an interest-only payment facility for a maximum period of six months.
10. The applicant must not have obtained another loan from the cooperative for the same purpose under a different loan heading.
11. The loan will be disbursed only after the application has been approved by the Board of Directors.
Persons Not Eligible for the Facility
To maintain fairness, transparency and good governance, the affordable loan facilities will not be provided to members and office-bearers of the Board of Directors, the Account Supervisory Committee, advisory committees, other subcommittees, or employees of the cooperative.
The restriction will also apply to their family members and relatives as defined under the Cooperative Act, 2017, as amended.
Definition of Family
“Family” includes a member’s spouse, children, daughters-in-law, adopted children, parents, stepmother, grandparents, parents-in-law, and dependent brothers and sisters under the member’s legal care.
Family members who have formally separated, live independently, and earn through their own employment, profession or business are not included in this definition.
Definition of Relatives
“Relatives” include close paternal, maternal and marital relations such as uncles, aunts, nephews, nieces, grandchildren, brothers-in-law, sisters-in-law, and their household members, as defined by the Cooperative Act, 2017, as amended.
The term also includes employees working in the cooperative institution where the concerned person is a member.
Management Directed to Begin Implementation
The Board has directed the management to prepare the necessary working procedures, loan application forms, public information notices and member-orientation programmes. The loan schemes will be implemented after the required administrative and operational arrangements are completed.
The Board expressed its confidence that the new facilities will provide easier access to finance, encourage productive investment and help improve the economic well-being of the cooperative’s general members.

01/08/2026

Bachan SACCOS Expands Member Services, Approves Rs 29.76 Million in Loans

Bachan Savings and Credit Cooperative Society Limited has reviewed its financial performance, expanded member-focused services and introduced new measures to strengthen governance, loan recovery and institutional accountability.

The decisions were taken at the cooperative’s 106th Board of Directors meeting held on July 26 , 2026.

The board reviewed the cooperative’s financial activities up to the end of July 16, 2026 and concluded that its overall financial performance was satisfactory. It also decided to remain active in making the institution’s financial operations more effective and sustainable.

During the meeting, the board approved loans amounting to Rs 29,759,400 that had been disbursed between Ashadh 3 and July 25, 2026. It also approved the membership of eight new shareholders who joined the cooperative during the same period.

As part of its member welfare programme, the cooperative approved death-relief assistance of Rs 5,000 each for four bereaved member families. It also approved maternity nutrition allowances of Rs 6,000 each for two female shareholders following the birth of their children.

The board decided to hold the cooperative’s 17th Annual General Meeting on 19 Sept, 2026 at 10:00 a.m. at the Nepal Cultural Association in Dillibazar, Kathmandu. Members will be informed about the meeting through telephone calls, official correspondence and a public notice in a national daily newspaper.

To strengthen internal control and financial accountability, the board selected CA Sagar Acharya of S. Acharya and Associates to conduct the statutory audit for fiscal year 2025/026. It also continued the appointment of CA Sudip Dahal of S. Dahal and Associates as the internal auditor for fiscal year 2026/027, with quarterly audits to be conducted.

The meeting also formed a seven-member Cooperative Irregularities, Dispute Resolution and Loan Recovery Subcommittee under the coordination of cooperative expert and former government director Shiva Prasad Ghimire. The subcommittee will study institutional irregularities, resolve member-related disputes, support loan recovery and submit recommendations to the Board of Directors.

Other members of the subcommittee represent the cooperative’s board secretariat, Audit Supervision Committee, management, legal advisory team, Loan Subcommittee and loan management division.

In an effort to support entrepreneurship among members, the cooperative decided to introduce long-term loans in collaboration with the National Cooperative Bank Limited. Eligible members will be able to obtain loans for periods ranging from one to 10 years at an annual interest rate of 7.5 percent.

The loan schemes will cover golden business loans, simple business loans, retail business loans and small agricultural business project loans. Loan approval will remain subject to the cooperative’s policies, documentation requirements, repayment capacity and collateral procedures.

The cooperative also decided to distribute free QR stands to shareholders operating retail businesses. The initiative is intended to promote digital payments, strengthen members’ businesses and increase their participation in the formal banking system.

The board further approved preparations for launching mobile banking services. It also decided to use the online cadastral-map system introduced by the Survey Office to improve the efficiency of land and collateral-related documentation.

To improve loan discipline, the cooperative decided to prepare a formal procedure for granting penalty waivers to borrowers who are unable to make timely payments for justified reasons. Such waivers will be considered on the basis of written applications, repayment history and the cooperative’s approved policy.

The board also introduced a monthly reporting requirement for loans involving directors, subcommittee members, employees, guarantors and immediate family members. The reports will be presented at every monthly board meeting to strengthen transparency, reduce conflicts of interest and improve oversight.

In addition, the cooperative decided to revise its existing bylaws in line with the Cooperative Act, 2017, and subsequent amendments. The proposed revisions will be presented to members at the upcoming Annual General Meeting.

The board said the decisions were aimed at improving financial management, protecting members’ interests, expanding digital services and promoting responsible lending and recovery practices within the cooperative.

01/08/2026

Board Approves Key Governance, Lending and Member Service Decisions

The 106th meeting of the Board of Directors of Bachan Savings and Credit Society Cooperative Ltd. was held at the cooperative's head office in Dillibazar, Kathmandu, under the chairmanship of President Mukunda Raj Khanal. The meeting reviewed 32 agenda items and endorsed a series of strategic, financial, governance and member welfare decisions aimed at strengthening institutional performance and improving services to members.
The Board reviewed the institution's financial performance up to the end of May/June 2026 and expressed satisfaction with the overall progress. It resolved to further strengthen financial operations and approved loan disbursements totaling Rs. 29.79 million made between June 17 and July 25, 2026.
The meeting also approved the admission of eight new share members, expanding the cooperative's membership base. Decisions of the Staff Credit Management Sub-Committee and the Staff Accounts Management Sub-Committee were formally endorsed. In addition, the Board approved the closure of the accounts of three members upon their request.
As part of its member welfare programme, the Board approved death relief assistance of Rs. 5,000 each to the families of four share members and maternity nutrition support of Rs. 6,000 each to two female share members. The cooperative also resolved to procure necessary office stationery through a competitive quotation process and approved a monthly fuel allowance for a field employee.
The Board fixed the date for the 17th Annual General Meeting (AGM) to be held on September 19, 2026 (Saturday) at the Nepal Cultural Association Hall, Dillibazar, Kathmandu. Members will be informed through telephone, written notices and newspaper publication.
To strengthen institutional governance, the Board appointed external and internal auditors for the current fiscal year and constituted a Cooperative Dispute Resolution and Loan Recovery Sub-Committee. The committee has been mandated to study cooperative-related disputes, facilitate settlements, strengthen loan recovery and submit recommendations to the Board.
The meeting also approved secured loans to eligible members after completing the required legal and documentation procedures. In line with loan recovery measures, the Board decided to publish public notices for borrowers who have failed to repay loans within the stipulated period, including notices related to collateral auction where applicable.
To support members facing genuine financial hardship, the Board approved waiver requests for loan penalties submitted within the prescribed period. It also decided to distribute free QR stands to members operating retail businesses to promote digital payment systems and strengthen cashless transactions.
Among other major decisions, the Board approved the use of an online cadastral map system, initiated amendments to the cooperative's bylaws in line with prevailing cooperative legislation, sanctioned an advance fund to facilitate members' savings withdrawals, and authorized the purchase of an NTC SIM card for institutional mobile banking services.
The Board further introduced long-term business loan schemes in coordination with the National Cooperative Bank at a concessional interest rate of 7.5 percent under four business loan categories. It also approved the installation of CCTV cameras at the office, directed the preparation of a loan penalty waiver procedure, endorsed the Chief Executive Officer's periodic report, decided to operate staff salary accounts through Prime Commercial Bank Limited, and required regular reporting of loans involving board members, sub-committee members and employees.
In support of staff welfare, the Board approved concessional employee vehicle loans at 7 percent interest with repayment periods ranging from one to five years. Concluding the meeting, the Board stated that the adopted decisions would strengthen institutional governance, improve financial discipline, enhance member services and support the cooperative's long-term sustainable growth.

01/08/2026

Strong Liquidity: Cooperative improves management and financial operation

The latest management CEO Report (covering the period up to May/June 2026) by Dr. Dess Mardan Basnet, Chief Executive Officer of Bachan Savings and Credit Cooperative Society Ltd., indicates that the institution remained profitable while maintaining adequate liquidity. However, the high proportion of overdue loans, weak membership growth, and low institutional capital indicate the need for immediate corrective action.
According to the report, the cooperative earned a total income of Rs 83,400,544 during the reporting period, while its total expenditure stood at Rs 74,160,481. As a result, the institution recorded a net profit of approximately Rs 9,240,063.
The cooperative earned Rs 62,509,211 from loan investments alone, accounting for nearly 75 percent of its total income. This indicates that the institution’s earnings are highly dependent on lending activities. Although the cooperative remained profitable, it recorded in loan-loss provision expenses.
Loan investment within the standard, but quality remains weak
According to the report, the cooperative’s total loan investment stood at approximately Rs 260,794,823. Members’ savings deposits amounted to Rs 239,330,233, share capital stood at Rs 37,142,500, and reserves and other funds totalled around Rs 52,730,867.
Under the PEARLS financial monitoring indicators, net loans represented 75.83 percent of total assets, which falls within the recommended standard of 70 to 80 percent. Savings deposits represented 69.59 percent of total assets, slightly below the minimum standard of 70 percent.
External borrowing accounted for only 1.32 percent of total assets, significantly below the maximum limit of five percent. This indicates that the institution is not heavily dependent on external credit.
Member share capital represented 10.08 percent of total assets, meeting the minimum required standard. However, net institutional capital stood at only 7.47 percent, while the minimum recommended level is 10 percent.
Institutional capital helps a cooperative absorb possible losses, maintain long-term stability, and manage financial crises. The cooperative should therefore increase institutional capital by retaining an appropriate portion of its profit in reserves.
Overdue loans at a critical level
The most serious concern identified in the report is the proportion of overdue loans in the total loan portfolio. Loan delinquency reached 18.58 percent, while the PEARLS standard requires it to remain below five percent.
This indicates that although the cooperative has invested an acceptable proportion of its assets in loans, the quality of its loan portfolio and repayment performance remain weak.
An increase in overdue loans can raise provision expenses, reduce distributable profit, weaken institutional capital, and affect the institution’s ability to provide new loans and services to members.
The report recommends classifying overdue loans according to the length of delay and preparing separate recovery plans. Loans may be grouped into those overdue for up to 30 days, 31 to 90 days, 91 days to one year, and more than one year.
Each category should have a responsible employee, a recovery target, a deadline, and clearly defined legal or administrative action.
Loan recovery process intensified
The cooperative said it had intensified loan recovery through daily telephone follow-ups, household visits, written notices, publication of notices in national newspapers, and collateral auction procedures.
Fourteen borrowers received seven-day notices, and all cases remained under process. Similarly, 12 borrowers received 15-day notices. Six of them settled their accounts, while six remained under process.
Nine borrowers received 35-day notices. Three settled their accounts, while six remained under the recovery process.
Auction proceedings were initiated against six borrowers. Five reportedly settled their accounts, while one auction process was suspended.
This shows that borrowers responded more positively after stricter legal and administrative measures were initiated. However, the overall delinquency ratio remains at 18.58 percent, indicating that individual recoveries have not yet sufficiently reduced the total credit risk.
Strong liquidity, but weak institutional growth
The cooperative’s liquidity-to-total-savings ratio stood at 27.35 percent, well above the minimum standard of 15 percent. This indicates that the institution has adequate capacity to meet savings withdrawals, payments, and immediate financial obligations.
Operating expenses represented 2.88 percent of total assets, remaining within the maximum standard of five percent. Non-earning assets and non-earning liquid assets also remained within the prescribed limits.
However, annual membership growth was only 0.39 percent, compared with the minimum standard of 15 percent. Total asset growth was also limited to 1.79 percent.
This indicates the need to attract quality members, reactivate inactive members, strengthen regular savings campaigns, and increase member participation.
Interest rates revised
The cooperative reduced the interest rate on collateral-backed loans from 12.99 percent to 11.99 percent. It also reduced the fixed-deposit interest rate from nine percent to eight percent.
According to the report, the average market savings interest rate was 8.30 percent, while the average lending rate was 12.86 percent. The difference between the average savings and lending rates, known as the interest spread, stood at 4.56 percent.
The revised lending rate may make the cooperative’s loans more competitive in the market. However, management must ensure that the reduced rate still generates enough income to cover deposit costs, operating expenses, provisions, and possible credit losses.
Corrective action required
The report recommends strengthening household-level loan recovery campaigns, conducting cooperative and financial literacy programmes, expanding regular and children’s savings schemes, and focusing on the selection of quality members.
It also recommends increasing institutional capital by retaining an appropriate portion of annual profit, strengthening reserves, controlling unnecessary expenses, and reducing losses arising from bad loans.
Overall, the cooperative remains profitable, maintains adequate liquidity, and has low dependence on external borrowing. However, its long-term financial stability will largely depend on its ability to reduce overdue loans, improve loan appraisal and monitoring, strengthen institutional capital, and increase meaningful member participation.

08/07/2026

Logo of Bachan Savings and Credit Cooperative Society Ltd.

The logo of Bachan Savings and Credit Cooperative Ltd. is a visual symbol of the institution’s identity, values, objectives, and cooperative principles. It represents unity among members, mutual support, trust, economic prosperity, social responsibility, and the institution’s commitment to sustainable development. As the official emblem of the cooperative, the logo also reflects its history, reputation, and future direction.

The two hands shown at the top of the logo symbolize protection, cooperation, trust, and mutual support. They communicate the message that the institution is always committed to the welfare, security, and progress of its members.

The human figures placed within the hands represent the unity, participation, and collective efforts of the members. They highlight the cooperative belief that true strength does not lie in individual effort alone, but in collective action and mutual cooperation.

The ears of paddy and green leaves on both sides of the logo symbolize productivity, prosperity, greenery, and economic development. They reflect the institution’s goal of improving the living standards of its members and promoting their economic empowerment.

The circular shape at the bottom of the logo represents unity, continuity, stability, and institutional strength. It expresses the cooperative’s commitment to long-term development, sustainability, and continuous progress.

The green color used in the logo stands for hope, growth, prosperity, trust, and a positive future. It reflects the institution’s ongoing efforts toward the economic and social upliftment of its members.

The year “2066” written at the bottom of the logo indicates the establishment year of the institution. It represents the cooperative’s proud history, experience, credibility, and continuity.

The logo shall be used in the institution’s official correspondence, reports, brochures, publications, promotional materials, website, social media, digital platforms, office buildings, branch offices, notice boards, identity cards, certificates, and other institutional materials. Its original form, proportion, color, and design must not be altered. It cannot be used for commercial, personal, or unauthorized purposes without prior approval from the institution.

Overall, the logo of Bachan Savings and Credit Cooperative Ltd. reflects the cooperative philosophy of achieving sustainable development through members’ unity, mutual cooperation, trust, economic prosperity, and social responsibility.

08/07/2026

Strengthening: NCBL Recognises Positive Transformation under PROTECT Programme

Bachan Savings and Credit Cooperative Society Ltd. (Bachan SACCOS) has demonstrated remarkable progress in institutional governance, financial discipline, member-focused services, and regulatory compliance, according to the latest PROTECT Virtual Assessment Report prepared by the National Cooperative Bank Limited (NCBL), Department of Grading.
The assessment was conducted under NCBL’s PROTECT (Provincial-level Programme for Regular Institutional Testing and Enhancement) initiative, which aims to support cooperative institutions in improving their operational standards, financial sustainability, governance practices, and overall institutional development. The report was prepared based on a virtual review, discussions with the institution, and an analysis of improvements achieved after the previous physical assessment.
According to NCBL, Bachan SACCOS has made significant improvements in several critical areas. The institution has been actively working towards reducing overdue loans, initiating necessary recovery measures, including legal procedures where required, and has committed to bringing overdue loans within acceptable limits. The cooperative has also started maintaining loan-loss protection provisions as per regulatory requirements, ensuring stronger financial risk management.
NCBL appreciated the cooperative’s efforts in strengthening financial management practices, including revision of savings and loan interest rates, maintaining adequate loan security provisions, and improving member accessibility through simplified membership procedures. The institution has also successfully managed inactive members and continued implementing member-oriented initiatives such as cooperative education, financial literacy programmes, and community engagement activities.
The report further highlighted Bachan SACCOS’s commitment towards good governance and regulatory compliance. The cooperative has initiated the revision of its bylaws incorporating provisions of cooperative laws, regulations, and directives. Regular discussions of policies and procedures in board meetings, registration with the National Cooperative Regulatory Authority, and membership with the Credit Information Centre were also recognised as important institutional achievements.
NCBL acknowledged Bachan SACCOS as a member-centric cooperative institution rooted in community values, highlighting its continued focus on serving members and strengthening its identity as a cooperative owned and guided by its members.
NCBL Provides Roadmap for Further Growth and Upgradation
While appreciating the progress achieved, NCBL has provided several recommendations for further institutional strengthening. The bank has encouraged Bachan SACCOS to continue expanding its membership base, increase members’ share capital participation, strengthen institutional capital, and focus on qualitative and quantitative growth of the balance sheet.
NCBL has also suggested adopting a strategic approach towards regular savings mobilisation, effective recovery of overdue loans, expansion of accessible small-loan services, and increasing credit outreach among members. The report emphasised the importance of maintaining sound financial practices and ensuring long-term sustainability through disciplined financial management.
In the area of institutional development, NCBL recommended regular updating of operational policies and procedures with member participation, periodic review of annual plans and budgets, continued investment in cooperative education and financial literacy programmes, and strengthening documentation and reporting systems through digital platforms such as COPOMIS.
The report further encouraged Bachan SACCOS to develop a long-term strategic plan, align annual policies and programmes with institutional goals, establish performance-based management systems, and promote employee accountability through clear work responsibilities and regular performance evaluations.
Commitment Towards Excellence
Concluding its assessment, NCBL appreciated the strengths demonstrated by Bachan SACCOS and encouraged the institution to continue building upon its achievements while implementing the recommended improvement measures through a systematic action plan. NCBL also expressed its commitment to providing necessary support for the cooperative’s continued growth and advancement.
The recognition from Nepal’s leading cooperative banking institution reflects Bachan SACCOS’s continuous commitment towards transparency, responsible governance, member empowerment, and sustainable cooperative development.

23/06/2026

Bachan Cooperative Strengthens Governance and Loan Management Through New Board Decisions

Bachan Savings and Credit Cooperative Society Ltd. has reported satisfactory financial and operational performance and has adopted a series of strategic decisions aimed at strengthening financial management, member services, and regulatory compliance.

The decisions were made during the 104th Meeting of the Board of Directors held on June 16, 2026 (Ashadh 2, 2083 BS). After reviewing the institution’s financial activities up to mid-June 2026 (Jestha-end 2083 BS), the Board concluded that the cooperative’s overall financial performance remained satisfactory and resolved to further enhance operational effectiveness.

The Board approved loan disbursements totaling NPR 28.866 million made between May 17 and June 16, 2026, and endorsed the admission of seven new share members during the same period. Decisions made by the Staff Loan Management Sub-Committee and the Staff Accounting Management Sub-Committee were also ratified.

In a move to support members, the Board approved additional loans totaling NPR 15.06 million for six members and introduced provisions under the “Regular Savings Member Welfare Scheme,” allowing eligible members to access interest-free loans after maintaining regular savings for at least one year.

The meeting also endorsed the implementation of recent amendments to the Cooperative Act, 2017, established a task force to prepare the Regulatory Compliance Plan 2083, and strengthened the use of credit information systems to improve risk management and governance.

To enhance market outreach and service delivery, the Board formed a Market Management Sub-Committee and approved the appointment of Mr. Sudip Dhital as Market Assistant Manager.

The cooperative also adopted measures to improve loan recovery. Notices will be issued to eight borrowers who have failed to make regular repayments, while public notices will be published inviting sealed bids for the auction of collateral properties belonging to ten defaulting borrowers. A third auction notice will also be issued concerning the collateral of two long-term delinquent borrowers.

As part of its member-friendly financial policy, the cooperative reduced the interest rate on collateral-backed loans from 12.99 percent to 11.99 percent, effective June 18, 2026. The interest rate on fixed deposits was adjusted from 9 percent to 8 percent. In addition, members who regularly save NPR 1,000 per month under the welfare scheme will receive an additional 0.15 percent interest on fixed deposits.

The Board further delegated authority to management at different levels to waive penalty charges on overdue loans under specified conditions, reflecting a balanced approach to loan recovery and member support.

According to the cooperative, these decisions demonstrate its commitment to financial discipline, sound governance, regulatory compliance, and the continued welfare of its members.