Gopal Tiwari

Kathmandu, March 3:

Employees of Nepal Bank Ltd (NBL), one of the largest commercial banks in Nepal, have started protesting against the decision of the new management led by CEO Craig McAllister, regarding the ‘rules and regulations’ of compulsory retirement scheme (CRS) that is likely to be introduced following the voluntary retirement scheme (VRS). To carry forward the CRS, the management has earmarked Rs 320 million. Section officer of NBL, Kishor Nepali talking to The Himalayan Times, said that the new management has breached an earlier agreement re-ached with employees regarding CRS.

Tarak Bahadur KC, human resource chief of the bank, however denied the accusation and said that there had never been any agreement between the management and the employees regarding CRS. He added that if the bank does not get the required number of employees to retire under the Voluntary Retirement Scheme (VRS) which aims at retiring 1,200 employees, the bank management will be compelled to opt for CRS. “Over 2,000 employees in NBL are protesting against this decision and a debate is going on in the bank with the foreign management,” informed Nepali. “A total of 1,100 employees are being laid off,” he said. The authorised spokesperson of NBL Ajay Nepal, refused to speak to The Himalayan Times on the issue.

Secretary general of Nepal Bank Employees Union (NBEU), Premal Khanal said in the earlier provisions made by NBL, employee could work until the age of 58 years. But later, the bank management has changed it and fixed no time which is terrorising the employees. Khanal also said that a draft has already been prepared for the implementation of CRS, but employees do not agree to it. Despite two years of reform, problems are yet to be resolved, accused Khanal, a senior level officer at the bank. “The bank still has over 50 per cent non-performing assets (about Rs 10 billion) despite the management having promised to bring it down to a single digit within two years,” Khanal added. Only Rs 2 billion in deposits has been increased in the last two years that stands at Rs 36 billion today, he informed. Similarly, two years ago, the credit flow was to the tune of Rs 21 billion which is only Rs 17 billion now. The new management has already closed down thirty branches in rural areas in the last two years, denying people of banking services and causing loss of employment, he accused.

Despite oppositions, it is clear that some such harsh steps will ensue, as the financial reforms process takes its own course.