Political stability key to banking sectors’ growth: Bamjan

Kathmandu, October 1:

Political instability has hit financial sector hard. On one hand, number of financial institutions is rising and on the other th-eir growth is limited.

“Banking sector has become more lucrative these days as people are putting their hard-earned money on the banks,” says D B Bamjan, executive chairman of Gurkha Development Bank, a bank promoted by the British Gurkhas. “And its more sensitive also,” he says adding that banks are responsible in boosting depositors confidence for a long-term growth.

Nepal Rastra Bank (NRB) has also brought rules and regulations to safeguard depositors’ interest. “But Development bank has more challenges as it has to compete with commercial bank and finance company both,” Bamjan says adding that they both poses challenges to Development bank. “But we are different form others,” he claims.

He is satisfied with the performance of Gurkha Development Bank as it is operating in its third year. The bank has collected a deposit of Rs 1.42 billion and it has invested Rs 1.19 billion. Gurkha is planning to open two new branches outside the Kathmandu valley within this year.

Apart from political stability, policy stability is also a must. “Policy stability is also key to growth. The changing policies have had negative impact to banking sectors’ growth,” he says.