Laxmi Laghubitta
Bittiya Sanstha Ltd. 

 Kapan Marag, Maharajgunj, Kathmandu, Nepal
Tel:+977-1-4373682  /  4370548            

Fax 977-1-4374234 
Email: info@laxmilaghu.com.np/ info@llbs.com.np

Introduction

Laxmi Laghubitta Bittiya Sanstha Limited (LxLB), a microfinance subsidiary of Laxmi Bank Limited (a commercial bank of Nepal), is a national level microfinance institution licensed by Nepal Rastra Bank, the central bank of Nepal. It is the first microfinance institution to be registered as a subsidiary of a commercial bank in Nepal. Registered as a limited company on 30th November 2010, LxLB received operating license from central bank as "D" class (National Level) financial institution on 6th March 2012 to operate under Bank and Financial Institution Act 2003. It started formal microfinance operation from June 4, 2012 from its first branch office located in Battar, Nuwakot.

As a professional microfinance institution, LxLB has developed customer friendly financial products and services and plans to reach large number of clients in un-served and underserved areas. It focuses on livelihood business, micro-enterprise and small and medium scale enterprises with an aim to benefit and empower the low income group of Nepal.  The Program principle of LxLB includes:
•    Scaling up to achieve the goals of impact and sustainability;
•    Operating under market realities including charging a market based interest rate and full cost recovery; and
•    Regular monitoring and evaluation to improve program quality and measure the impact on clients.

LxLB has its Head Office in Kathmandu, Nepal and provides microfinance services to low income group through its branch offices located in different parts of the country.

Generally LxLB establishes branch network to market and sale its product and services through the branch offices. However, LxLB realize this traditional model of service delivery would not be sufficient and also would not bring scale fast enough. It intends to use technology to develop alternative distribution channel. It will use mobile microfinance banking (M-banking) to serve existing customer better and reach new customer.

The paid of capital of LxLB is Rs. 220 million. The distribution is as under:
•    Laxmi Bank Limited                -      70%
•    General public including staff -      30%