The management of Rastriya Banijya Bank (RBB) has said that the bank is planning to reduce the bad debt or non-performing assets (NPAs) to 28 percent by July 2007 from the existing around 50 percent.
Speaking on the occasion of the 41st anniversary of the bank, Bruce F Henderson, Chief Executive Officer (CEO) of the bank, said that the bank is committed to advance automation to 47 branches of the country to improve their performance along with rightsizing loan portfolios by increasing loan recovery, according to reports.
Henderson expressed satisfaction over the bank’s success in recovering over Rs 7.4 billion in cash over the past three years and restructuring of Rs 2.56 billion worth of loans.
Dr Manoj Shahi, chairman of the bank said, “We have greater challenges ahead to be the top banking institution in the country.” He stressed on the need to expedite the introduction of modern banking products to satisfy customers with effective and fast service delivery.
Speaking at the same programme, deputy governor of the Nepal Rastra Bank (NRB), Bir Bikram Rayamajhi, said that to achieve the target set by the new management team, employees have to fully support the bank’s network. “The bank would achieve its goal as a state-owned bank by adopting a modern banking approach,” he added.
The government had handed over the management of the state owned RBB to a foreign management team led by led by Bruce F Henderson.