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News item 24-1-2007 |
Finance minister Dr Ram Sharan Mahat today expressed
satisfaction over reforms
being carried out at the
largest, state-owned
commercial bank, Rastriya
Banijya Bank (RBB).
Addressing a programme
today, organised to mark the
42nd anniversary of RBB, he
stated that cash recovery
and restructuring of loans
in the past four years have
shown a positive sign of
recovery. “I think reforms
have raised hopes for RBB
and its customers,
especially from rural
areas,” he added. Dr Mahat,
however, cautiously
underscored the need for
speeding up restructuring of
big loans, saying that
reforms cannot be said to be
very successful without
recovering the loans from
wilful defaulters. “This
success should be taken as a
motivating factor. With
this, a journey has begun
and RBB still has to travel
a long way to become vibrant
and a strong financial
institution,” he said. “It
is the right time for
expansion in rural areas.
Now we should focus on
generating opportunities
from unexploited areas,” he
added. Dr Mahat also asked
the bank management to
re-open closed branches in
rural areas in order to
revive financial activities.
Earlier, he gave away awards
and prizes to winners of
various sports events
organised by the bank. He
also handed over scholarship
to Nepal Disabled Federation
and financial assistance to
Pashupati Bridhashram.
Highlighting the details of
reforms in the bank, Bruce F
Henderson, chief executive
officer at RBB said the
significant achievement made
so far was to reduce NPA
from Rs 16 billion from July
2003 to Rs 7.5 billion by
mid-January this year. Of
the total loans and advances
worth Rs 24.8 billion as of
mid-December 2006, the
performing portion has gone
up to Rs 16 billion.
More about the Rastriya
Banijya Bank reforms
Other banking news and
articles:
Rastriya Banijya Bank
privatisation
(24-1-2007)
Agricultural development
bank to issue shares
(19-1-2007)
Bank of Kathmandu opens
in Janakpur
(18-1-2007)
Everest Bank opens
Nepalgunj branche
(16-1-2007)
Siddhartha Development
Bank (14-1-2007)Himalayan bank reports
profit growth
(12-1-2007)
Lumbini bank reports
profit (12-1-2007)
Global Bank in Kathmandu
(11-1-07)
Nepal Bangladesh bank
back on track (11-1-07)
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