Speaking at a program organized in Kathmandu capital on Sunday to mark the bank's 51st anniversary, acting CEO Bhesh Raj Panthi said that the government-owned bank was working toward forming merchant banking institution to help in the development of capital market as well as microfinance institution to provide banking service to the backward and deprived communities of the rural areas.On the occasion, Panthi also highlighted the achievements made by the bank which landed into trouble some years ago due to huge non-performing loans (NPL). He said that cumulative loss of the bank come down below Rs 1 billion in mid-January compared to Rs 23.56 billion some 15 years ago.
As part of the modernization plan, acting CEO Panthi said that electronic transaction accounts for 30 percent of the total transactions of the bank. He also said that the bank was planning to take e-transactions to 50 percent in the near future.
NPL level of the bank, which was as high as 60 percent at some time, came down to 3 percent as at second quarter of 2015/16.
RBBL is the leading bank in terms of mobilizing deposit and loans. According to the bank, its deposits stood at Rs 112.8 billion and loans at Rs 77 billion at the end of the second quarter i.e. mid-January.
Panthi also said that the bank has floated Rs 510 million at five percent interest rate in line with the government plan to provide subsidized agro loans at six percent interest rate. The loans under subsidized commercial farming scheme accounts for nearly 48 percent of the total loans floated by bank and financial institutions (BFIs) so far.
Meanwhile, the state-owned bank also organized various programs like financial literacy rally, blood donation program, felicitation of its staff members, among others, to mark its 51st anniversary.
Panthi also said that the bank was moving ahead with a strategic plan to make it more competitive in the banking industry while also supporting the government in its aim of economic development.
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