Kathmandu, January 24:

Acting governor Krishna Bahadur Manandhar has underscored the need of state-owned financial institutions like Rastriya Banijya Bank (RBB) to enhance competitive stren-gth and improve service delivery to sustain in curr-ent cutthroat competition.

Addressing a programme today organised to mark the 43rd anniversary of the bank, he said that no businesses, including banks could survive unless they enhance their competitive strength, provide on time service delivery, adopt modern technologies and cost effective measures. “The financial market is one of the most competitive sectors in Nepal, where 23 commercial banks, 58 development banks and 80 finance companies are in existence,” he said, adding that the state-owned largest commercial bank -RBB no more enjoys monopoly.

“Private and joint venture banks are also increasingly expanding their presence in rural areas lately. However, RBB still has its competitive strength in its wide branch network, which needs to be exploited properly,” he added.

Earlier today, Manandhar inaugurated an ATM counter at RBB head office premises and launched e-banking service.

Highlighting the details of reforms of the bank in the last five years, Janardan Acharya, CEO at the RBB said the significant achievement made so far was to reduce to NPA from 72 per cent to 28 per cent and earnings of profit worth Rs 5.69 billion.

“The bank made Rs 160 million net profit during the first quarter of the current fiscal year and has set a target of Rs 1.70 billion for the entire fiscal year,” he said.

RBB has also offered voluntary retirement scheme (VRS) in four rounds and has been able to reduce its employees’ strength to 3,119 from 5,527 in the past five years.

“The productivity of employees has gone up during the period, as RBB provided various trainings and skill enhancement opportunities to more than 2,500 employees,” he added.

Acharya also informed that the bank has computerised 78 of its branches with bringing over 80 per cent of total banking transactions under computer system, while 40 branches are connected under ABBS system. SMS banking service is also available from 56 branches. RBB already has two ATM counters and soon install 10 ATMs as well as reopen seven branches within this fiscal year.

Dr Bhola Nath Chalise, RBB chairman stressed on the need of enhancing competitive strength, cutting cost of business and improving human resources to compete with others.

As a part of the bank’s social responsibility, Dr Chalise announced the establishment of RBB CSR Fund and contributed Rs 5,00,000 to support diarrhoea and tuberculosis patients in mid and far western Nepal.