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RBB all set to hold its 1st AGM
KATHMANDU, AUG 14 -
Rastriya Banijya Bank (RBB) is all set to hold its first-ever annual general meeting (AGM) within mid-September following its conversion into a company about three years ago.
The government-owned bank is yet to have its annual report of FY 2008-09, 2007-08 and 2006-07 to be endorsed by the AGM. “We will present the annual reports of three years in the AGM to be held soon for endorsement,” said Janardan Acharya, chief executive officer of RBB.
He expressed displeasure over the failure of the country’s largest bank to hold the AGM despite preparing the annual report on time.
As per the Company Act, a company should hold its AGM within six months of the completion of the fiscal year.
RBB is now entitled to follow the Company Act. Earlier, it was operating under its own Act. Acharya said the bank tried to hold the first AGM before the election to the constituent assembly, but the government asked it to adjourn it, saying that it would be better to hold the AGM after the new government is formed.
“Frquent change in thte bank’s board in the latter years delayed the process further,” said Acharya.
The bank is entitiled to pay fines for failing to hold the AGM to the Offie of Company Registrar for four years. “We are going to pay fine soon,” Acharya said.
On the other hand, its auditing also takes time compared to other private sector banks because the Office of the Auditor General (OAG) audits the bank’s financial transactions that usually get delayed.
According to the RBB, the OAG appointed auditors in September last year for the auditing for the FY 2008/09. “We want auditors to be appointed as soon as possible this year for the auditing of transactions made in the FY 2009/10,” said Acharya.
As per the non-audited balance sheet of RBB, it earned a net profit of Rs. 2.01 billion last fiscal year, which is an increase of Rs. 1.92 billion the previous fiscal year. The bank’s non-performing loans also decreased to to 9.75 percent from 15.68 percent 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.
Posted on: 2010-08-15 08:00
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