RBB posts Rs 1.68b net profit

Kathmandu, August 17:

Rastriya Banijya Bank (RBB), the only state-owned commercial bank, has earned a net profit of Rs 1.68 billion during the fiscal year 2006-07.

The bank’s deposits rose by nine per cent and loans by 9.29 per cent during the year, as against the previous fiscal, states a bank press release here, today.

As of the mid-July 2007, the bank collected Rs 50.34 billion in deposits and extended loans of Rs 25.39 billion, while it made an investment to the tune of Rs 12.71 billion.

The bank’s management is being handled by foreign management team for the last four years under the Financial Sector Reform Programme.

The bank has been able to cut down the volume of defaulted loans from 70 per cent to 29 per cent during last four years since the reforms started. The recovery of loans disbursed by the new management team is more than 99.5 per cent, claims the release.

The bank has already computerised 71 branches and started SMS banking services in 28 branches and anywhere branch banking service from 16 branches while nine of its branch offices are providing 365-day banking. The same number of branches are providing evening services.

RBB has been serving a total of 1.2 million depositors and 125,000 loan customers through its 114 branch offices, spread over 63 districts in the country. The bank has also opened its counters in Doha and Dubai to facilitate inward flow of remittances.

The bank plans to reduce its NPA level to 24 per cent by January next year and open or reopen 10 branches in potential locations within this fiscal year.