Citizens Investment Trust (CIT) has said that it was planning to introduce a financial instrument in the near future to utilize remittance income in infrastructure and development projects.

Speaking at a press meet held at CIT Office in New Baneshwar on Monday, Ram Kumar Pokharel, executive director of CIT, said they were in the process of preparing a legal basis to introduce the instrument. "Currently we are mobilizing deposits within the country. As we are also investors, we are preparing to mobilize deposits from migrant workers so that we can channelize such fund into national priority projects and other infrastructure projects," added Pokharel.

According to Pokharel, the semi-government company, which operates as investment trust, has mobilized Rs 58 billion in deposits and invested Rs 54 billion as of mid-March. Majority of CIT's investment is in the form of fixed deposits in various banks and financial institutions (BFIs) followed by lending to depositors of the company. It has deposited Rs 37.5 billion in fixed deposits of various BFIs. Similarly, it has lent Rs 8 billion loans to depositors of the company. Likewise, it has also made investment of Rs 2 billion in the Upper Tamakoshi Hydropower Project. Similarly, the company has also lent Rs 290 million as working capital to Janak Educational Materials Center Ltd. It has also made investment of Rs 4 billion in shares, debentures, initial public offering and capital as the promoter of various companies.

"The current challenge against the backdrop of liquidity surplus in the banking system is to increase return for the company," said Pokharel. "Our priority is to increase investment in various sectors where there is less risk and high return."

CIT is celebrating its silver jubilee on Tuesday.

Published on: 17 March 2015 | Republica