Enervated RBB flexes fiscal musles

KATHMANDU: Rastriya Banijya Bank (RBB) has profit Rs 2 billion at present. But, negative NPA level has not decreased, and this indicates that despite the improvement phase negative networth Rs 14.68 billion is a challenge for the bank in days ahead.

Speaking at the 45th annual aniversary programme of RBB, Finance Minister Surendra Pandey said, “In the present context, government has been finding different ways for capital injection to minimize the negative networth of the bank.” But, he also said it was not possible to inject capital worth Rs 16 billion at once. He added that the government injected capital in Nepal Bank Limited at first, and thereafter then only in RBB. “After the impact of capital injection in NBL, RBB is next in the row,” he said. The current deposit mobilization of RBB is worth Rs 6.67 billion, which according to the minister is not so bad.

RBB president Narayan Subedi said that there

should no political interference while opening branches of the bank. RBB CEO Janardan Adhikari said the bank is hopeful that its capital plan would be accepted soon so that the bank can convert its negative networth to positive.

According to RBB’s internal audit, the Maharajgunj branch stood first on the basis of performance in banking services this year. Minister Pandey handed over Rs 750,000 to the family of a former employee of RBB (Sindhuli branch) Ganesh Bahadur Shrestha, who lost his life during an attack by an unknown gang.

The bank has also provided employment opportunity to Late Shrestha’s son.

Altogether 37 employees of RBB were awarded for outstanding work.