NRB to contract out NBL management

Nepal Rastra Bank (NRB) has decided to contract out Nepal Bank’s management to a team of Nepali professionals, initially for a period of two years.
The central bank today called for bids with technical and financial proposals by February 22. Interested Nepali individuals, firms, companies having qualifications, eligibility and adhering to the terms and conditions can submit their bids, according to the bank.
“The management team should include chief executive officer, chief credit officer, treasury manager, chief operating officer,” said K B Manandhar, acting governor.
The bidders may form their teams by optionally including one foreign consultant with hands-on international experience.“The initial contract will be for two years, but it may be extended mutually,” Manandhar said. The bidders must also submit tax clearance certificates and individual self-declaration of proposed candidates for being eligible and qualified to participate legally and work full time.
It will take another one month to completely hand over the contract as it will take time for verification process and for obtaining no-objection from the World Bank, which has been assisting the financial sector reform programme, Manandhar said.
“The NBL management contract is part of the financial sector reform programme that startedin 2002.”The troubled Nepal Bank Ltd is being managed by a team headed by Dr Binod Atreya under the supervision of the central bank. NRB appointed Dr Atreya’s team about six months ago, when the foreign management team of the Bank of Scotland (Ireland) Ltd, ICC Consulting decided to walk out suddenly, unhappy over NRB’s decision to extend the contract for another three months.
An unaudited report proves that Nepali management team is capable of handling the bank as its financial health has been improving, Dr Atreya said.
The foreign management team has downsized staff, computerised 44 branches, prepared operational and HR manual. Reform has also helped modernise the ailing bank and made it more professional and reduced non-performing assets from a whopping 59 per cent to 13 per cent.
The bank, apart from injecting fresh blood, has also started reinstating its branches that were displaced due to the armed conflict.