Business»
RBB to lay off 300 employees
KATHMANDU, AUG 11 -
Rastriya Banijya Bank (RBB) is set to announce its seventh voluntary retirement scheme (VRS) within August to give retirement to 300 employees who have already served 15 years in the bank. The largest bank in the country plans to make a fresh recruitment of 200 staff following the VRS.
The RBB has about 2,650 employees currently employed in 126 braches including the head office. The management said the bank was overstaffed especially at the lower level.
RBB chief executive officer Janardhan Acharya said that the government-owned bank would announce the VRS programme as soon as possible after the bank’s board decides in this regard. “A new VRS is required to cut down overstaffing and it is aimed at blending old generation of staff with young blood with fresh recruitment,” he added.
RBB has already given retirement to around 2,000 employees under previous six VRS. Initially, the bank had around 5,700 employees and it came down to the current size with VRS and usual retirement due to age and service limit. RBB wants the lower level employees to go under the VRS because they are no longer needed in the technology driven banking activities in recent days. Acharya admitted that they are less likely to go because lower level employees find it difficult to get jobs following retirement.
The RBB will provide additional incentive of Rs 120 million for 300 employees in addition to normal retirement benefits. On the basis of ranking of staff, the RBB will provide from additional incentive of Rs. 200,000 to Rs 400,000 for taking retirement under VRS.
Net profit surges to Rs 2 billion
KATHMANDU: Rastriya Banijya Bank earned a net profit of Rs. 2.01 billion in the last fiscal year 2009/10 up from Rs. 1.92 billion. Its operating profit went up to Rs, 1.30 billion last year from Rs, 900 million the previous year. The net profit soared as right back provisioning was also included in the operating profit.
The bank reduced its non-performing loans (NPL) to 9.75 percent from 15.68 percent in the last fiscal year. The largest bank of the country also reduced its negative net worth to Rs. 9.95 billion from around Rs. 11.5 billion the previous fiscal year. Its deposits went up to Rs. 68.56 billion last year from Rs. 68.09 billion while credit flow increased to Rs. 35.74 b billion from Rs. 31.60 billion.
Posted on: 2010-08-12 07:52
Headlines
Advertisements
