Government may not privatise RBS soon

Himalayan News Service

Kathmandu, May 8:

Chairman of Rastriya Beema Sansthan (RBS) Deep Basnyat speaking to mediapersons her today ruled out the possibility of privatising RBS in the near future stating that "it has been generating profits and is economically sound." Basnyat dismissed the rumours about its privatisation and said that the corporation is planning to modernise itself with the installation of new technology. He said that RBS management is going to computerise its accounting system to make the insurance transactions more effective in the days ahead. Basnyat said that there are technical errors in accounting system which are creating delays at times. "The management of RBS is also thinking to segregate the life and non-life insurance business after making proper rules and regulations," he added.

RBS has planned to increase the capital of non-life and life insurance amounting to Rs 100 million and 250 million respectively, he said adding that "the internal fund is sufficient to increase the capital." In the category of non-life insurance, the government occupies 47.56 per cent, Nepal Rastra Bank 29.26 per cent, Nepal Bank Limited 10.98 per cent and general public 12.20 per cent, according to RBS statistics. Similarly, in life-insuracne segment, the government has 27.78 per cent, Nepal Rastra Bank 55.55 per cent and Nepal Bank Limited 16.67 per cent.