Kathmandu, March 9:

As he sat relaxing in the presidential suite of Hyatt Regency solving a Soduku, he looked far from the professional banker with over 40 years of experience in Indian’s key public sector banks. The next moment Satish Chander Gupta chairman and managing director (CMD) of Punjab National Bank (PNB) straightened himself, back being a true professional, handling a volley of questions in an exclusive talk with The Himalayan Times with ease.

A visit to Kathmandu for the inauguration of Everest Bank Ltd’s 20th branch, incidentally, happens to be the last lap of the CMD’s tenure as his term ends on May 31, 2007.

“Banks in Asian countries are yet to undergo radical changes and financial sector reforms here, still have a long way to go,” he began, giving an insight into the backdrop for the growth of banking sector in Nepal.

“Nepal, I feel lacks depth in its financial sector. This needs to be addressed immediately because without it, economic development cannot come.”

In the next breath, however, he expressed full faith on the policy makers of Nepal who he felt had the required vision and commitment to give top priority to the needs of the common man. They need to solve these everyday uncertainties that is currently plaguing Nepal so as to gain the trust of the business community.

Talking about PNB’s commitment to Everest Bank Ltd (EBL), in which PNB holds 20 per cent share, the chairman said that PNB is strongly behind EBL, sharing its ATM network and wide banking experience.

“EBL is on the right path and its growth has been fairly good so far. But there is tremendous

scope for improvement,” he said. The bank needs to focus on expansion particularly in rural pockets or “unbanked” areas and fulfill its corporate social responsibilities.

Lauding EBL’s record in reducing its net non performing assets (NPA) to zero and earning a good reputation in the market, Gupta hinted at increasing the bank’s effectiveness through acquiring another bank.

But when queried on rumours of a possible merger between EBL and Nepal Investment Bank and Bank of Kathmandu, he preferred to skirt the issue with, “That is entirely up to the board of directors and its chairman to decide.”

Regarding hydro power projects, Gupta stated the bank’s role would be that of a financer. “I feel they have to adopt a consortium approach to handle hydro-power projects. It will require a close involvement of the central bank to evaluate the credibility of interested parties,” said Gupta.

Before the tet-e tete came to an end, one could not avoid the question: What next after of his tenure at PNB in May? Ruling out on an extension for even a day, the seasoned banker surprisingly appeared unprepared for his retirement.

“I haven’t decided yet what to do, but after a few months of unwinding I might look at getting back to what I do best, solving Soduku and banking,” was his parting shot.