THT 10 years ago: Commercial banks invest close to 28pc

Kathmandu, June 19, 2006

In an exclusive discussion, Shovan Dev Pant, CEO of Lumbini Bank Ltd (LBL) said that the average growth in investment in commercial banks stands at 27.82 per cent during the last fiscal.

The growth rate in loans and advances by commercial banks stood at 13.38 per cent during the last fiscal, said Pant.

Similarly, the deposit growth rate in commercial banks during the last five years had decreased to 9.81 per cent until the last fiscal year, according to Pant.

Against this background, LBL has started reform initiatives making short-term, medium-term and longterm plans. During the reform process in the coming four years, Pant said that the bank has projected to maintain a 85 per cent cash deposit ratio.

It will push towards registering a 15 per cent growth in the bank’s lending portfolio, said Pant.

When asked as to how he would be rescuing the bank from troubles like its huge NPA, he replied, “Massive reforms are underway which would bring a turnaround in the bank in a few years.”

During the projection period, the bank management has planned to increase its investment portfolio growth by 15 per cent with effective service delivery, he says.

In one of the initiatives taken by the management to turn the bank around, Pant informed, “The management is going to replace the existing software gradually and about Rs 2.5 million has been earmarked annually in the budget.”

Constitution drafting committee needs no govt letters, says AG

The recently formed Constitution Drafting Committee headed by retired Supreme Court Justice Laxman Prasad Aryal, being a committee formed by political parties, need not wait for letters from the government to start its job, Attorney General Yagyamurti Banjade has said.

“Their help was asked by the political parties and as such, there was no need of any formal letter from the government for the commission to start work,” Banjade said, adding, “The members of the committee can start work.

The government can provide staff, office and other infrastructure if they need.” Banjade said the political parties should provide support if they want. Banjade also argued that there was no question of the committee members taking oath of office as the committee is not a government body.

The Attorney General added that the committee members being legal experts, the parities sought their help to prepare the draft but the draft they prepare will not be the final document.

“The political parties would make the draft final and would send it to the government to declare that as the interim Constitution,” he said.

He added there is confusion over who will announce the Constitution.