Kathmandu, December 21:

If commercial banks ever face survival threats or management inefficiency, it will primarily be due to poor corporate governance. As number of banks and financial institutions is increasing, the market, on the contrary, is facing more difficulties. The bankers, in such a bottle neck competition, urge the state to create more investment opportunities in the areas where financial institutions can prosper.

“Strong and healthy banking sector will definitely help boost national economy,” comments Sashin Joshi, chief executive officer (CEO) of Nepal Industrial and Commercial (NIC) Bank Ltd in an exclusive interview with The Himalayan Times.

Despite limited market, NIC Bank has been powerfully driving its operations and transactions utilising the available resources to their maximum. “NIC is the only commercial bank to be ISO 9001:2000 certified for its quality management system by United Registrar of Systems (URS), UK under United Kingdom Accreditation Service in 2006,” Joshi informs. However, the quality certification is valid only for a period of one year as URS audits the bank’s progress and activities on yearly basis. “Some of the key factors in boosting NIC bank’s performance are attributed to outstanding human resource, innovative approach, understanding of the market dynamics and unwavering adherence to best practice of governance,” thinks Joshi.

“If NIC bank operates like it is being operated today, it will soon register a record outcome, keeping investors and customers happy,” says the confident banker. “It will emerge as a model bank.” Joshi no doubt holds a strong leadership quality that has driven the bank to a sound financial position. “The business sector is currently on ‘a wait and watch’ mood as there is no clear indication from the government on various issues like inve-stors’ security and property rights,” comments Joshi. However, he seems optimistic in a changed environment. According to him, “government has to clarify its vision on economic policy so that business co-uld survive and expand.”

“The time is running out to identify new areas for investment and encourage the market forces to function,” he opines adding that the government should remain only as a regulator and let the private sector do their job properly and honestly. “To increase the market pie for banking sector, colossal investment in infrastructure, tourism and hydro-power are urgently required, wh-ich ultimately could bring a turnaround in the economic growth within a few years time,” he says.

“Sound and safe environment has to be created to motivate the foreign investors to invest on infrastructure as the government alone cannot invest the huge amount needed for infrastructure,” says Joshi adding that without enough foreign direct investment, the economy will face tro-ubles to take off smoothly. “Even in hydropower, capital subsidy is required to boost investment.”

Talking about non-performing assets, Joshi adds, “Due to poor corporate governance, conflict of interest and poor management skills ratio of non-performing assets has increased.” In a bid to fulfil the market requirements and advance the banking operations on a sustained basis, NIC bank is all set to come out with new products and services in the near future. Earlier schemes such as NIC Life Saving Account, NIC Shikshya Kosh and NIC Ghar Subidha have got well-response.