Kathmandu, Feb. 13 -- Nepal Infrastructure Bank, the first bank established as a public-private partnership, received its operating licence from Nepal Rastra Bank on Monday. The financial institution aims to fill the infrastructure funding gap, and is expected to come into operation by June.

The government moved to set up Nepal Infrastructure Bank with the objective of financing infrastructure projects. It will own 10 percent of the bank's stock, and the rest of the capital will be put up by the private sector.

The central bank has relaxed the rules for Nepal Infrastructure Bank, and it will be allowed to issue loans up to 90 percent of its credit to core capital and domestic deposits ratio. The ceiling for commercial banks is 80 percen...