Kathmandu Post

Business»

NBL claims making Rs 315m profit this FY

KATHMANDU, DEC 24 - The ICC management team, which has been running Nepal Bank limited (NBL) - one of the two financially-wracked public banks, under two-year management contract, has claimed that it would generate an operating profit of about Rs 315 million during the current fiscal year.
Addressing a press meet organised by the management team to disseminate various progresses achieved during its 11-month tenure, top officials of the bank also said that given the frail economic situation the progress made by the bank is remarkable.
As a result of hard efforts made by the management team, the annual loss of the bank has been reduced by over 90 per cent to Rs 280.98 million from the loss of Rs 3 billion incurred during fiscal year 2001/02, said J. Craig McAllister, Chief Executive Officer of the bank.
"Despite the lingering economic sluggishness, the current pace of loan recovery has been very good and equally encouraging and this has raised hope that the bank will make operating profit during the current fiscal year," he added.
Defending the recent publication of big loan defaulters in the local dailies, he said that the publication was carried out under the directives of central bank and added that following the publication of the names, the response of defaulters has been increased.
"Some of the defaulters, who have long been ignoring the bank’s request to payback the loans, have started coming to the bank and negotiate," he added.
Bharat B Karki, Coordinator of the Management Committee, defended the bank’s recent request to Nepal Stock Exchange to delist its share from transaction. "Since the market value of the share didn’t represent the true financial condition of the bank with negative net profit of seven billion rupees, we made the request to prevent general public from possible financial loss," he said.
Presenting a rosy progress made by the foreign management, a progress statement issued on the occasion claimed that gross recoveries of the principal and non-performing loans including Rs 2.9 billion cash has gone up to Rs 4.9 billion.
The number of the employees of the bank has been reduced by 1,473 through the Voluntary Retirement Scheme (VRS) and new computerised accounting system is being installed in 44 branches of the bank.
Likewise, the new management has changed the fund management system and has increased its investment in government securities to Rs 13 billion from Rs 5 billion.
Similarly, it was also informed that a new internal audit procedures of international standards has been introduced and branches are being examined for potential future income generation and extending services level to the community.
It was also said that the Maoists have altogether looted about Rs 240 million cash and gold from 24 branch banks, but concerned official were quick to add that almost all the loss has been covered by cash in vault insurance scheme.Posted on: 2003-12-25 04:51

---