Krishna Bahadur Adhikari, Chief Executive Officer (CEO), Nepal Bank Limited
How have you been taking the pace of Nepal Bank?
We have our own pace. We have been completing routine tasks on time. If you are talking about results, then Nepal Bank has a good pace. We have 1 billion debt and a deposit of 2 billion. Profit is not the only priority for us. This year’s profit has also slightly contracted than the previous year. Our base interest rate is still below. In terms of NPL ie Non Performing Loan as well, we are in the middle level. Capital is strong and healthy in case of adequacy.
We have our own system, culture and pace. Rather than following how others are walking, we are moving forward in ways we can take the bank ahead in the long run and strengthen people’s confidence.
After coming to the leadership of the bank, what are the agendas you have set?
It has been three months since I have become CEO. However, I have been looking after the CEO works for the past nine months, including my work as officiating CEO. After I assumed office, I first worked on strengthening our internal ‘mechanism’. I also worked on to amend policies so as not to confuse the staff and to ensure that the work system was the same. The policies that were formulated 14-15 years ago were still being implemented. Hence, we have modified 12 policies.
Some policies are in the process of revision and formulation. These days, the whole banking system is based on technology. We are working on how we can improve the technology. We are making some changes to the bank’s organizational structure for faster and more effective work. If these things can be effectively managed, it can result in many positive changes.
Is there any problem with Nepal Bank connecting with people?
Currently, the service of Nepal Bank is of high level in the banking sector. However, we get to hear in public that ‘it is a government bank and the service is the same’. But it’s not like that. We are working to change the perception through the customers in Nepal Bank.
Employees who enter Nepal Bank have gone through a very difficult process to get through. Here, we have excellent staff from abroad and Nepal. Employees’ dedication to the bank is high because of which bank services are highly dedicated to customer service. That will be a huge support to take the bank to a higher level.
We can see competition among the banks to attract customers. How much is Nepal Bank paying attention to this?
We don’t go for cheap ‘marketing’. We have our own system and customs. It’s not that services provided by other banks are not provided by Nepal Bank. From traditional banking systems to ‘modern’ technology-friendly products, we have been providing all. The attractiveness of Nepal Bank is that we have given them the highest interest in terms of which the deposit customers should also get the highest return. Although Nepal Bank gives one percent less interest compared to other banks, public confidence in Nepal Bank stands the same. However, we have given the highest interest.
When it comes to debt, the bank that provides debt with the cheapest interest rate is Nepal Bank.
If the intention is to make more profit, then raising one percent interest rate on one trillion debts makes a profit of one billion. Even when we raise that one percent, we will still be cheaper than other banks. Our objective is the minimum interest on the loan and the highest interest on the deposit.
What is difference in responsibility of a government bank and other banks for the country and its people?
The difference between government and private banks is that private banks are very focused on profits. There is a pressure of shareholders as they invest for profit. However, as we have major ownership of the government, we have to fulfill some aspirations of shareholders, following the policy rules of the government and serving the general public.
We are the first bank in Nepal. Furthermore, the name of the country is associated with us as Nepal Bank. Therefore, it is the responsibility of Nepal Bank to lead the implementation of state policy rules while balancing services and trade. We believe in the responsible role of banks.
What role does Nepal Bank play in the journey of growth and prosperity?
We believe that businesses should develop in Nepal. If the possibilities of tourism, agriculture, hydropower sector, and all others are developed, then it will create employment opportunities as well. Revenue from the state also comes from this, business will bloom. With the manpower and raw materials consumed here, we reckon that we will increase support for the biggest traders. As a result, the manpower here will be utilized and resources will be mobilized to make the current slogan ‘prosperous Nepal, happy Nepali’ successful. In these cases, the bank will always extend its support.
During your tenure, where do you aim to reach Nepal Bank?
I envisage Nepal Bank to be a competent, healthy and strong one by maintaining institutional governance. We have an internal goal in business growth.
We are happy standing in the 26th, fulfilling our internal goals. Doing good to others means the economy of the country is good!
So what is the goal of the bank?
Whatever statistics are in place by Ashar end, 2076, it will double in the next four years. If this is fulfilled, we will be happy even if it stands on the 26th. It will be the state’s win then. It will not be reliving even if we come first if we do not accomplish our goal. In that sense, we are not in the race for the first or second, on the basis of money.
Similarly, we will strengthen our technology. For that, we will not hesitate to invest.
We will raise a feeling that this is a bank for all Nepalis. For that, We will make our service qualitative. In that way, Nepal Bank will become the kind of bank that will give moral and practical inspiration to other banks in the next four years.
What do you say in the end?
All the employees of the bank are qualified and competent. With the best use of their potential, there will be no problem for Nepal Bank to move forward. We will always be dedicated to the client’s financial development. We provide fair returns to depositors and also provide loans to clients at a reasonable interest rate. We expect your love and faith for the same.