Kathmandu, March 19:

Rastriya Banijya Bank (RBB) has adopted modern marketing tools by introducing consumer loans to compete with the private banks. After the success of home loan, vehicle and educational loans in cheaper interest rates, RBB today announced mortgage loan, professional loan, personal loan and school loan in a competitive interest rates.

Speaking at the press interaction organised by RBB today, Bruce F Henderson, CEO of the bank said that the bank has done remarkable progress in terms of loan recovery and strengthening human resource development. Henderson seemed satisfied on the achievements during his tenure in the bank. According to him, the bank has opened its door for various investment opportunities like in development sector, infrastructure and consumer sector. “What is significant is that the bank has been able to recover cash of over eight billion rupees after the new management took over,” Henderson said adding that the bank is going to appoint new relationship managers with a view to give new vitality in its market set up soon.

Janardan Acharya, spokespersons at the bank while replying to a question about the slow pace of reforms said that the bank wants to see prompt response from judiciary and other administrative bodies to achieve success further. “We are in the right track and streamlining the human resource management,” he said. Talking about reduction of 600 staff of the bank introducing Voluntary Retirement Scheme (VRS) and induct some 300 fresh MBA graduates, he said that since the past 10 years, not a single appointment was made in the bank. The current number of staff at the bank stands at 3360.

Sudarshan Raj Pandey, audit manager of the bank said that the bank has a plan to invest upto Rs 350 million in mortgage loans, personal loans and professional loans. “However, if the demand increases, the management would be selective considering the market potentials,” he said. The consumer financing market has increased substantially in recent times and there is a huge potential as well, he informed.

Gopal Rajbahak, CFO said the bank has over Rs 40 billion deposit. “And the NPA has reduced to 50 per cent from its earlier 72 per cent from the time the new management took over,” said he. Anil Poudel, chartered accountant said that mortgage loan, which is for personal/business requi-rements is charged nine to 10 per cent interest rates, while the loan for development of residential /commercial complex is cha-rged 8.5 to nine per cent, professional loan upto two million is char-ged 8.5 per cent rate and school loans 6.5 per cent rate.