Rastriya Banijya Bank (RBB)
should explore market for itself and not wait for government decision, said
finance minister Shankar Prasad Koirala, addressing the 49th
anniversary of the RBB, here today.
The wholly state-owned bank
should explore market and expand as the time has changed and it has no
monopolhy market like earlier, he said, urging the bank to lend in the
productive sectors prioritised by the government.
"Though, the bank has
succeeded in deposit mobilisation, it has failed in lending, which is a serious
case," he said, adding that the bank should focus on expanding its lending
profile in the productive sectors. "The government encourages competition
in the financial sector."
Likewise, chief executive of
the bank Krishna Prasad Sharma said that the bank will focus on strengthening
its capital structure and recovering non-performing loans (NPL).
"The bank will continue
to reduce staff cost, expand its banking services and network, and prepare competitive
human resource," he said, informing that the bank's targets to increase deposit
mobilisation to Rs 121 billion and float Rs 78 billion loan within the next
three years.
The only wholly government
owned bank has mobilised deposit worth Rs 96 billion until mid-January, whereas its
lending stands at Rs 52 billion. With 148 branch network across the country, the
bank also provides services from its nine branchless banking offices and 80 ATM
outlets across the country.
The net worth of the bank has
been gradually increasing, said central bank governor Dr Yuba Raj Khatiwada, on the
occasion. "The bank should focus on
increasing non-interest income, Khatiwada said, adding that the balance sheet should
also be stronger.
Similarly, finance secretary
Shanta Raj Subedi said that the bank should now find its own market. "The RBB
has operational autonomy," he said, adding that it should however move
ahead according to policy and directives of the government and central bank.
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