Prabhu Bank

Prabhu Bank – Retail Banking and Branchless Banking in Manang, Rukum and Achham



Most rural areas of Nepal have small populations scattered over VDCs that are difficult to reach.  Also, the absence of financial institution in those areas has led to people in the area deprived of formal access to finance. Also the geographic landscape of these areas which is quite challenging further provides challenges to the local population of the area. Most of the population in such area are dependent upon agriculture and most of the youth work abroad as migrant labour.


Challenges Faced

Low presence of formal financial institution has led impacted the daily lives of the local population. The population has to rely on informal money lenders or local financial institutions which charges high interest rate and charges. Also these rural populations also usually lack strong financial literacy to make balanced financial decisions to improve their livelihoods.


Sakchyam’s Intervention

With Sakchyam’s support, Prabhu Bank will establish a total of 3 new branches at Chame of Manang Distict, Rukumkot of Rukum and Kamalbazar of Achham district. With the support Prabhu Bank also plans to establish 15 BLB points in these three districts. These areas have huge potential to develop as commercial hubs. Prabhu Bank will also leverage its experience of working with bottom of the pyramid and will ensure the people living in remote locations have access to funds especially to invest in productive areas such as agriculture sector, low cost housing and it will also facilitate the locals to get the services provided from the government social security fund without much hassle.


Likely Impact

The new bank branches and BLB’S will cater to the numerous banking needs of the local population. Also the local women entrepreneur and farmers will have access to a number of segment-specific financial products that the bank will offer. Also agro business firms, SMEs and MSMEs will be able to benefit from existing and new financial products that will be designed to meet specific and seasonal needs; general households will have a trusted financial institution to receive and route their remittance, along with having various saving options. Through the partnership, Prabhu Bank will disburse over NPR 438 million loans and bring in more than 15,000 small deposit account holders into the formal financial system.


Latest Update on Sakchyam – Prabhu Bank Partnership

As of September 2017, Prabhu Bank have,

  • 3 physical branches and 12 out of 15 BLB touchpoints operational.
  • 1976 beneficiaries reached through financial services
  • NPR 11.65 million loan disbursed