http://www.bachansaving.com.np/

Bachan Saving and Credit Co-operative Ltd., Dillibazar-30, Kathmandu (2026)

25/04/2026

PEARLS Report Analysis (Cooperative Financial Performance Assessment)
The PEARLS indicators provide a comprehensive evaluation of the financial health, efficiency, and sustainability of the cooperative. Based on the presented data, the institution shows a mixed performance with strengths in liquidity and moderate financial structure, but serious concerns in asset quality and growth indicators.

1. Effective Financial Structure
The financial structure is generally stable but shows room for improvement in institutional capital.
• Net Loans/Total Assets: 78.62% (Standard: 70–80%)
✔ Indicates strong credit deployment and efficient utilization of assets in lending activities.
• Savings Deposits/Total Assets: 68.09% (Standard: 70–80%)
⚠ Slightly below standard, suggesting dependence on other funding sources or under-mobilization of savings.
• External Credit/Total Assets: 3.80% (Standard: 10%)
❌ Below standard — this is a key weakness, indicating insufficient institutional reserves and long-term financial buffer.
Summary: Financial structure is operationally stable but institutionally weak due to low reserve capital.
2. Asset Quality
This is the most critical concern area.
• Total Loan Delinquency: 22.59% (Standard:

25/04/2026

Bachan SACCOS reports satisfactory financial performance, focuses on loan management and policy reforms -CEO Report

Kathmandu, Dillibazar — Bachan Savings and Credit Society Cooperative Ltd. has reported that its financial and institutional performance up to the month of February/March, 2026 remains satisfactory, while emphasizing stronger loan management, membership expansion, and policy reforms.

According to the management report presented by Chief Executive Officer Dr. Dess Mardan Basnet, the institution has prioritized making its financial activities more effective through improved governance, credit management, and operational reforms.

The Board of Directors meeting held on March/April, 2026 (Chaitra 6, 2082 B.S.) approved several key decisions, including loan approvals, membership admissions, decisions of various sub-committees, loan classification system improvements, and consolidation of similar savings schemes. The board also decided to issue 35-day repayment notices to overdue borrowers and initiate collateral auction procedures where necessary.

The report states that loans worth more than NPR 23.6 million were approved between Magh and Falgun 2082. During the same period, three new members were added to the cooperative. Total savings reached over NPR 232.6 million, while total loan investment stood at over NPR 268.6 million.

To strengthen loan recovery, the cooperative has implemented measures such as phone follow-ups, household notices, and legal recovery procedures. Out of 10 defaulter cases, recovery has been made from 2 borrowers, while others remain under process.

However, the report also highlights several challenges, including incomplete recovery of long-outstanding bad loans, delays in court-related recovery cases, restrictions on expanding service counters due to government directives, and difficulties in implementing cooperative education programs in schools.

The institution has outlined future reform plans, including expanding financial literacy and cooperative education programs, improving member quality and regular savings, expanding microfinance groups, and activating a loan recovery task force.

Meanwhile, the cooperative has participated in the national cooperative strengthening program and has successfully obtained licensing from the National Cooperative Regulatory Authority.
The report shows that the average interest rate on savings stands at 8.62%, while the lending rate is 13.59%, resulting in a spread of 4.97%.
The institution has reaffirmed its commitment to transparency, accountability, and sustainable financial management, aiming for further institutional strengthening in the coming days.
PEARLS Analysis Highlights Financial Strength with Rising Risk Concerns in Cooperative Sector
A recent PEARLS-based financial assessment of a cooperative has revealed a mixed performance, showing both stability and emerging risks in key financial indicators.
The report indicates that the institution maintains a strong liquidity position, controlled operating costs, and healthy lending activity, reflecting short-term financial stability and efficient resource utilization. Net loans stand at 78.62% of total assets, while liquidity remains above the required standard at 21.51%, ensuring adequate cash flow management.
However, the analysis raises serious concerns in asset quality and growth performance. Loan delinquency has surged to 22.59%, significantly above the acceptable benchmark of 5%, indicating weak credit discipline and elevated financial risk. Membership growth remains extremely low at 0.19%, while total assets have declined by 0.39%, signaling stagnation in expansion and institutional slowdown.
Institutional capital is also reported below standard at 4.22%, reflecting weak financial buffers for long-term sustainability. Additionally, no dividend distribution has been recorded, which may affect member motivation and participation.
Experts highlight that while the cooperative’s short-term financial management remains stable, urgent corrective measures are required in loan recovery, capital strengthening, and membership expansion to ensure long-term sustainability.
The overall assessment concludes that without immediate reforms in credit risk management and institutional capital development, the cooperative’s financial stability may face increasing pressure in the future.

25/04/2026

Cooperative Approves NPR 27.25 Million in Loans, Sets New Financial Measures

Kathmandu, April 19, 2026

The 102nd meeting of the Board of Directors of Bachan Savings and Credit Cooperative Ltd., held on April 19, 2026 (Baisakh 6, 2083 B.S.), has endorsed a series of key financial and administrative decisions aimed at strengthening institutional performance and governance.

Reviewing the financial report up to April 13, 2026 (end of Chaitra 2082 B.S.), the board concluded that the institution’s overall financial condition remains satisfactory, while emphasizing the need for more effective financial operations in the coming days.

During the meeting, loan investments totaling NPR 27,252,000 disbursed between March 20, 2026 and April 19, 2026 were formally approved. The board also endorsed the membership of seven new shareholders admitted within the same period.

Decisions made by both the Staff Loan Management Sub-Committee and the Staff Accounts Management Sub-Committee in multiple meetings held between mid-March and mid-April 2026 were ratified.

Among policy decisions, the cooperative approved the printing cost of the New Year 2083 calendar and introduced a provision allowing members to convert their savings into share capital while taking loans. Additionally, loan applications worth NPR 12.8 million submitted by seven members under various categories were approved.

In a move to attract deposits, the board decided to provide an annual interest rate of 8 percent on fixed savings exceeding NPR 2,499,999 for a one-year term.

Addressing loan recovery, the cooperative resolved to issue 35-day notices to five defaulting borrowers and proceed with property auction (sealed bidding process) for nine borrowers who failed to repay despite prior notice. Similarly, public notices will be issued to seven unsecured defaulters.

On the administrative side, Ms. Pavitra Punmagar of Kailali District has been appointed as Office Assistant on a six-month probation period effective March 30, 2026.

The board also introduced stricter collateral requirements, mandating that land pledged against loans must have a minimum 30-foot road access and be evaluated through technical assessment.

On the occasion of the cooperative’s 17th Foundation Day held on April 11, 2026, the institution reported total income of NPR 121,250 and expenditure of NPR 463,915 from programs including member education, picnic, and calendar unveiling.

Furthermore, the draft Procurement and Supply Policy 2083 will be finalized and implemented following approval in the upcoming board meeting. The Chief Executive Officer’s progress report covering activities up to mid-April 2026 was also presented and endorsed.

The cooperative stated that these decisions are aimed at ensuring financial discipline, improving service delivery, and strengthening member confidence.

12/04/2026

Welcome Address on the Occasion of the 17th Anniversary of Bachan Saving and Credit Cooperative Society Ltd. by Dr. Dess Mardan Basnet, Chief Executive Officer(CEO).

Greetings and Significance of the 17th Anniversary Program

Respected Chief Guest, distinguished guests, members of the Board of Directors, sub-committee members, valued members, and all stakeholders present—I extend my warm welcome and heartfelt greetings to you all.

Today, we are gathered here to celebrate the historic moment of the 17th anniversary of our cooperative institution. This is not just a celebration, but also an opportunity to reflect on our past achievements, honor our contributors, and move forward with renewed commitment toward the future.

On this occasion, it is a matter of great pride to honor our senior members devoted to the cooperative, outstanding savers, exemplary borrowers, best-performing groups, and individuals from committees and sub-committees who have significantly contributed to the development of the cooperative. Likewise, our efforts to empower members through cooperative education and financial literacy programs are equally important.

History and Achievements

Our cooperative was established in the year 2066 B.S. (2009/2010 A.D.). It was founded by university students, teachers, and social workers, under the leadership of founding chairperson Professor Laxman Mohan Dhoj Joshi and followed by 30 founder members.

The primary objectives at the time of establishment were to develop a habit of saving among members, provide affordable and accessible loans, and build an economically self-reliant community. The cooperative also aimed to mobilize savings from urban areas and promote investment in semi-urban and rural areas.

The core philosophy of this cooperative is to create peace and prosperity in the community through emotional and financial literacy.

Over the years, we have achieved remarkable progress in membership expansion, savings mobilization, loan disbursement, and institutional development. These achievements have made our mission more effective and meaningful.

Key Achievements
Current Share Capital: NPR 35,803,800
Reserve and Other Funds: NPR 46,217,427
Savings and Deposits: NPR 233,048,243
Loan Investment: NPR 265,155,234
Bank and Cash Balance: NPR 51,400,775
Total Members: 1,509
Female: 724
Male: 782
Institutional: 3
Borrowing Members: 352
Balance Sheet as of Magh 27, 2082 B.S.: NPR 344,057,218
Contribution of Members and Leadership

The success of this journey is largely due to the invaluable contributions of our founding members, Board of Directors, staff, and all members. It is because of everyone’s trust, cooperation, and dedication that the cooperative has reached this level. On this occasion, I express my sincere gratitude to all.

Role of the Cooperative in the Community

Bachan Saving and Credit Cooperative (Bachan SACCOS) has played a vital role in promoting savings, providing accessible credit, developing entrepreneurship, empowering economically, and ensuring financial inclusion. Beyond financial services, the cooperative has fulfilled its social responsibilities and played a leading role in community development.

Future Vision

Our commitment is to strengthen the cooperative further over the next 10 years by promoting equal savings, reducing loan interest rates, expanding equitable share ownership, ensuring transparency, good governance, equal participation of members, and sustainable development.

Status of Cooperatives in Nepal

The cooperative movement in Nepal is expanding rapidly. Currently, there are 32,965 primary cooperatives operating across the country, with over 10.9 million citizens directly involved.

Global Status of Cooperatives by Continents
Asia and Pacific
Over 600 million members
Around 1.5–2 million cooperatives
Key sectors: agriculture, dairy, rural credit, microfinance
Africa
About 500,000 cooperatives
Over 100 million members
Key sectors: agriculture, SACCOs, rural finance
Europe
140–150 million members
176,000–180,000 cooperatives
Key sectors: banking, agriculture, retail, social cooperatives
North America
Around 130 million members
45,000–50,000 cooperatives
Key sectors: agriculture, credit unions, energy
South America
Around 60–70 million members
90,000–110,000 cooperatives
Key sectors: agriculture, dairy, savings and credit, production
Australia and Oceania
Over 10 million members
1,700–2,000 cooperatives
Key sectors: agriculture, banking, insurance, retail
Global Overview
Around 1.1–1.2 billion people worldwide are cooperative members
Approximately 12–15% of the global population
Cooperatives generate over 280 million jobs globally
In many countries, cooperatives contribute 5–10% to GDP
Thus, cooperatives are considered a key pillar of the global social economy.

Closing Message
Finally, let us reaffirm our commitment to strengthen the cooperative by maintaining unity, trust, and cooperation among all members.

Today, as we celebrate this anniversary, we recognize that this institution—built on the principles of trust, cooperation, and mutual support—has significantly contributed to increasing savings, providing affordable credit, and promoting economic development in the community. This success has been made possible by the contributions of founding members, the Board of Directors, staff, and all members.

Let us move forward with transparency, accountability, and unity to further strengthen our cooperative in the days ahead.

I would also like to extend my heartfelt best wishes to all members and well-wishers of our cooperative for a prosperous, peaceful, and inclusive New Year 2083.

Thank you! Long live cooperatives!

27/03/2026

CEO Report (January /February, 2026): Cooperative Board Reviews Financial Progress and Launches New Member Support Initiatives

The Board of Directors of the cooperative recently held its meeting to review the institution’s financial and operational performance and to make important decisions aimed at strengthening governance, improving services for members, and ensuring long-term financial sustainability.

During the meeting, the Board reviewed of the CEO Report about the financial activities of the institution up to the end of January/February, 2026 and expressed satisfaction with the overall progress. Management reported that continuous efforts are being made to enhance financial performance and improve operational efficiency. The Board also approved loan investments made between 2082/10/05 and 2082/11/01 totaling NPR 14,571,000.

The Board further approved the membership of five new share members, reflecting the cooperative’s growing trust and participation within the community. The newly admitted members are Laxmi Shrestha, Badrika Basnet, Rupa Raut, Kumar Fuyal, and Shukra Bahadur Baram.

In order to support members’ personal and business activities, the Board approved several loan investments. These financial services aim to assist members in expanding economic opportunities and improving their livelihoods.

The Board also reviewed the status of loan repayments and directed management to continue issuing 35-day notice letters to borrowers who have not regularly paid their loan installments. In cases where repayment is not made even after the notice period, the institution will publish public notices inviting sealed bids for the auction of mortgaged properties, in accordance with cooperative rules and regulations.

To further promote entrepreneurship and financial inclusion, the Board approved the launch of new financial products. These include the Retail Business Loan with a loan amount of NPR 95,000 at an interest rate of 10 percent for a one-year period with monthly installments, and the Small Individual Entrepreneurship Loan with a loan amount of NPR 25,000 at an interest rate of 9.99 percent for one year with interest payable monthly.

In addition, the cooperative will introduce a Member Welfare Savings Scheme, under which members will deposit NPR 1,000 per month. The institution aims to enroll at least 500 members in this program within the first year.

As part of its commitment to member welfare, the Board approved maternity nutrition allowances for two female members, Sunita Tamang and Srishti Thapa Kshetri. The Board also discussed support mechanisms such as death relief assistance for the families of members.

Several institutional development decisions were also made during the meeting. These include approval of decisions taken by the Staff Loan Management Committee and the Staff Accounts Management Committee, delegation of authority to the Recruitment Committee for staff promotion and performance-based evaluation, establishment of a Member Savings Refund Fund, and an increase in remuneration for employees working in the Accounts Section and Office Support. The Board also decided to print 2,000 copies of the wall calendar for the New Year 2083 and begin preparations for celebrating the cooperative’s 17th Anniversary.

The Board also discussed ongoing challenges such as difficulties in recovering old loans, delays in court-related loan recovery cases, and restrictions affecting the expansion of service counters. Efforts are being made to address these issues and strengthen institutional operations.

Reaffirming its commitment to transparency, financial discipline, and member-centered services, the cooperative continues to work toward strengthening the cooperative movement and supporting the economic well-being of its members and communities.

26/03/2026

Empowering Members and Enhancing Operations: Highlights of the 101st Board Meeting

The 101st meeting of the Board of Directors was held on March 20, 2026, where several key decisions were made to strengthen the organization’s operations, financial management, and member services.

Financial Activities:
The Board reviewed the organization’s financial activities up to the end of February 2026 and found them satisfactory. Members resolved to continue proactive efforts to enhance the effectiveness of financial operations.

Loan Approvals:
A total loan of NPR 2,36,45,000 was approved for disbursement during the period February 14, 2026, to March 18, 2026. Additionally, multiple loans were sanctioned to individual shareholders, secured against their registered properties, with specified durations and interest arrangements.

Membership Approvals:
Three new share members were welcomed:

Navaraj K.C.
Lekhnath Ghimire
Gaitri Kumari Kutuwal

Subcommittee Decisions:
Decisions from the Employee Loan Management and Employee Accounting Management Subcommittee meetings were approved, and the Appointment Committee’s resolutions from March 3, 2026, were confirmed.

Operational Improvements:

Info Developers Software was requested to classify loans by type for better tracking.
Consolidation of similar savings accounts into a single category was approved.
Office equipment procurement will follow a competitive quotation process, selecting the lowest-priced option.
Social Security contributions will be deducted from the remuneration of the organization’s legal advisor, Advocate Ram Datt Ojha, starting March 2026.

Compliance and Recovery:
Borrowers with irregular payments received a 35-day notice, and for those failing to repay, a public auction of collateralized properties will be announced.

Policy and Governance:
The “Regular Member Welfare Savings” plan provisions will be incorporated into the Member Relief Policy–2080 for final approval at the next Annual General Meeting. Payments for amended policies approved at the 16th AGM were also sanctioned.

Human Resource Decisions:

Monthly meetings under the Administration Branch were scheduled, led by Branch Manager Deshraj Banjara.
The newly appointed Loan Manager’s salary and allowances were finalized at NPR 19,750 per month.

Audits and Reports:
The internal audit report for the second quarter of FY 2025/26 (up to mid-January 2026) was approved, with a commitment to address identified gaps. The CEO’s report on organizational activities up to mid-February 2026 was also endorsed.

Banking Operations:
The Board requested the National Cooperative Bank Ltd. to regularly collect pre-determined installments for the 10-year loan of NPR 2,00,00,000, following a partial repayment of NPR 66,00,000 and ongoing interest deductions.

The meeting concluded with the decision that no further matters required discussion.

27/02/2026

Executive Summary of the Second Quarterly Report (Audit Report-Kartik, Mansir and Poush, 2082/083)

1. Introduction

Bachan Savings and Credit Cooperative Ltd. (established in B.S. 2066 in accordance with the Cooperative Act 2048) is located in Dillibazar, Kathmandu. The institution is registered with the Inland Revenue Office, Battisputali, and has obtained Permanent Account Number (PAN) 304301579.
The main objectives of the institution are to promote the economic, social, and cultural development of its members, encourage savings habits, promote investment in productive sectors, and strengthen the spirit of cooperativism. Its ambition is to promote inclusive financial activities within the community based on members’ contributions.

2. Structure and Membership
• Board of Directors: 9 members
• Total number of members: 1,504
o Female: 725
o Male: 776
o Borrowing members: 356 (23.67%)
Various sub-committees have been formed within the institution, including the Audit and Supervision Committee, Credit Sub-Committee, Education Committee, Budget Committee, Women Committee, Microfinance Committee, along with the management team.

3. Applicable Policies, Acts, and Regulatory Provisions
The institution has implemented 12 internal policies, including Savings Policy, Loan Policy, Employee Service Regulations, Share Policy, Risk Management Policy, and Member Relief Policy.
It is also required to comply with prevailing laws and regulations, including the Cooperative Act 2074, Cooperative Regulation 2075, Income Tax Act 2058, Labor Act 2074, and Regulatory Standards 2082.

4. Audit Details
• Audit Firm: S. Dahal & Associates, Chartered Accountants
• 2nd Internal quarterly audit for FY 2082/83 completed
• Examination conducted at the Central Office, Dillibazar

5. Financial Analysis
5.1 Sources of Investment
Description Amount Percentage
Share Capital 35.79 million 11.73%
Funds 31.83 million 10.43%
Savings and Deposits 237.56 million 77.84%
➡ The primary source is members’ savings (approximately 78%).

5.2 Loan and Investment Distribution
Description Percentage
Personal Loans 44.19%
Business Loans 34.16%
Other Loans and Investments Remaining
➡ 93% of total investment is concentrated in loan disbursement.

6. Major Findings
6.1 Financial Aspects
• Liquidity maintained above 15% of total savings liabilities (NPR 7.385 million above the required level).
• Some expenses lack attached PAN bills.
• Incorrect tax deduction at source (only 1.5% applied at an incorrect rate).
• Prepaid expenses not properly classified.
• Error in classifying repair expenses as intangible assets.

6.2 Weaknesses in Internal Control
• Cash held exceeding insured limit.
• Cash in transit not insured.
• Different interest rates applied to the same type of savings.
• Some savings accounts not maintaining minimum balance.
• Member identification details not updated.

6.3 Weaknesses in Legal and Regulatory Compliance
• 33% female representation not maintained in the Board (only 22.22%).
• Stabilization Fund amount not deposited with NEFSCUN.
• Social audit not conducted.
• Minimum 50% loan flow to productive sectors not maintained.
• Instances of loan disbursement against regulatory standards.
• No AML/CFT risk assessment conducted.

7. Conclusion
Although the institution appears to be in a satisfactory financial condition, improvements are needed in internal control systems, regulatory compliance, loan policy implementation, and accounting classification.
In particular, the institution should:
• Ensure uniformity in interest rates,
• Update member KYM records,
• Increase female representation,
• Enhance loan flow to productive sectors,
• Conduct AML risk assessment and social audit,
• Strengthen internal control systems.

27/02/2026

CEO Report( Decembrer/January,2026): Bachan Cooperative’s Old Loans Remains a Recovery through Co-operative Act, 2017

Kathmandu, Dillibazar — Bachan Savings and Credit Cooperative Ltd. has reported that its total loan investment reached Rs 275.4 million by the end of Fiscal Year 2082 (up to Poush). The cooperative is currently serving 1503 members and has mobilized total savings of Rs 237.5 million. The Bachan SACCOS has provided nearly equal membership of the male and female. The Cooperative also has reached the number of the Loaner members about 25 percent of the total members of the organization.
According to the management report presented by Chief Executive Officer Dr. Dess Mardan Basnet, the institution’s share capital has grown to Rs 35.784 million, while external borrowings stand at Rs 19.5 million. During the review period, the cooperative recorded total income of Rs 22.4 million against expenses of Rs 34.1 million, resulting in an operating loss of Rs 1.167 million. The loss has primarily been attributed to Loan Loss Provision (LLP) requirements. Management has expressed confidence that the loss will decline in the coming quarters.
The report notes that the cooperative’s loan delinquency ratio stands at 23.64 percent, a level considered high and requiring immediate corrective measures. However, the liquidity ratio remains at 21.52 percent, indicating a relatively stable short-term financial position. Membership growth during the period was recorded at 2.53 percent, while total assets grew by 8.78 percent.
During the reporting period, the cooperative approved loans exceeding Rs 34.8 million and admitted 11 new shareholder members. It also continued monthly periodic savings deposits at National Cooperative Bank Ltd. and operated regular savings accounts at Kathmandu Savings and Credit Cooperative Union Ltd..
Management has implemented service charges on liquidity loans, reduced the interest rate on employees’ accumulated leave savings, and established a 2 percent Employee Education and Training Fund. A 35-day public notice for the auction of collateralized properties has also been published in a national daily to strengthen loan recovery efforts.
Despite these measures, the cooperative acknowledged ongoing challenges, including the recovery of bad loans outstanding since Fiscal Year 2010 delays in the sale of auctioned land in Dhading . Recovery cases filed in court have also experienced delays.
To address rising delinquency, the cooperative has intensified its recovery drive through daily follow-ups, issuance of 7-day, 15-day, and 35-day notices, and initiation of auction proceedings where necessary. The Loan Recovery Task Sub-Committee has been mobilizing staff on a weekly basis (every Friday) to intensify follow-up and recovery efforts for borrowers of Bachan Savings and Credit Cooperative Ltd. with outstanding loans up to Rs. 100,000. Management has indicated that stronger enforcement measures are expected to improve recovery performance within the third quarter of the current fiscal year.
The cooperative further stated that no formal complaints have been received from members to date. Looking ahead, it plans to expand cooperative education and financial literacy programs, promote children’s savings schemes, and further strengthen its loan recovery task force.
The CEO’s management report was presented at the board meeting held on February 13, 2026.

Bachan Saving and Credit Co-operative Ltd.

25/04/2026

25/04/2026

25/04/2026

12/04/2026

27/03/2026

26/03/2026

27/02/2026

27/02/2026

Address

Website

Alerts

Contact The Business

Shortcuts

Share

Category