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News item 16-11-2007 |
Nepal Bank
Ltd (NBL) has
left its worst days behind
and is now moving ahead
aggressively, said Dr Binod
Atreya, co-coordinator of
the management team of the
first bank in Nepal.
Three months ago, when the
foreign management team
walked out, the central bank
sent a team headed by Dr Atreya. The unaudited report
for the first quarter shows
that Nepali management team
is capable in handling NBL
and its financial health is
improving. Established in
1937, NBL has — in its
seventy years of operations
— seen many ups and downs
and learnt lessons from the
past mistakes. After being
declared a sick institution
due to chronic bad loans
and continuous political
interference, government
thought of reforming it and
services of The Bank of
Scotland Ltd, ICC
Consulting was hired.
However, the foreign
management remained always
controversial. “The
situation is different now
and unions are cooperative,”
Atreya said adding that
cordial relation between the
management and unions is
very important in the
progress of the bank.
“Downsizing staff,
computerizing 44 branches,
preparing operational and HR
manual were some of the
positive outcomes of
reforms,” Dr Atreya said.
Reform has also helped
modernize the ailing bank
and made it more
professional and reduced
Non-performing Assets from
59 per cent. In the recent
days, the pioneer financial
institution has to compete
with new private banks that
are competitive, aggressive
and technologically
advanced. “We are also
upgrading our services,” he
said adding that NBL offers
all the products that the
private banks offer and that
also in competitive rates.
It offers many kinds of
loans and has ABBS. “NBL is
planning to add ATMs and
e-banking soon,” he added.
However, the operating cost
of the bank is — 62 per cent
in interest income — the
highest among all the
commercial banks. “We are
again bringing VRS to reduce
it,” he said adding that
injecting fresh blood is
also necessary for the
sound health of the oldest
bank.
Read more about the
restructuring of the Nepal
Bank
Other banking news and
articles:
Vibor Bikas Bank
launches Vibor Super
Yield Deposit
(14-12-2007)
Makwanpur Agriculture
Development Bank
provides new loans for
unemployed (29-11-2007)
Garima Development Bank
Limited opens in Waling
Bazaar (24-11-2007)
Nabil
Bank inaugurates nine
new branches
(13-11-2007)
More banks come into
operations in Nepal
(13-10-2007)
Nepal Merchant Banking
and Finance to become a
commercial bank
(19-10-2007)
Sunrise bank starts
operations (11-10-2007)
Everest bank starts
mobile banking
(27-9-2007)
Nepal Bank begins
remittance service
(26-9-2007)
Standard Chartered PLC
to acquire American
Express Bank (19-9-2007)
Excel Development Bank
issues shares
(20-8-2007)
Rastriya
Banijya Bank reports
profit (17-8-2007)
Ace Finance Company
upgraded to Ace
Development Bank
(15-8-2007)
birat
laxmi development bank
issues shares (8-8-2007)
Profit Capital Merchant
Banking & Finance
(27-7-2007)
Nbbil
bank provides dividend
(15-7-2007)
Total deposits at the
banking sector grew by
over 10 percent
(24-6-2007)
ADBL
reduces non performing
loans (8-6-2007)
Nepal Stock Exchange
suspends trading of
Nepal Credit and
Commerce Bank
(30-1-2007)
Development Credit Bank
results (29-1-2007)
Buddha on bank notes
(25-1-2007)
Rastriya
Banijya Bank
privatisation (23-1-2007)
recovery plan for bad
loans (1-1-07)
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Easy
money and Nepalese banks
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