January 12: Nepal Bankers' Association had decided to study the profit and interest rates of banks as well as the salary provided to the staffers after concerns from different quarters of the society that the banks were making excessive profits and charging high interest rates.
The association has formed a study team under the coordination of CEO of Agriculture Development Bank Anil Kumar Upadhyay.
The team will prepare a comparative analysis of perks and facilities, profit and interest rates of banks in Nepal with other South Asian banks and also with the banks across the globe.
Chairman of Nepal Bankers' Association Bhuvan Dahal said that the comparative analysis is essential cast away any doubts regarding the banking practice in Nepal.
“The perks and salaries of bank employees have started making headlines these days. Even the finance ministry has shown interest in this topic. Therefore, we have decided to study this issue,” said Dahal.
“We believe that giving good remuneration to the staffers will bring good results to the company. It will also check corruption. This practice should be adopted not only by banks but also by other institutions,” he added.
This is the first decision taken by a meeting of the office bearers of the association on Thursday after newly-elected chairman Dahal assumed office.
Nepal Bankers' Association has also formed separate committees to restructure the statute of the association and to initiate lobbying for amending the Banking Offence Act. The association said it wants amendment to the act to ensure that innocent people do not get punishment.
The association has concluded that former CEO of Bank of Kathmandu faced action in bad loan case despite being innocent due to the weaknesses in law.
The association has formed a committee headed by Rastriya Banijya Bank’s CEO Kiran Kumar Shrestha to press for law amendment.
“Those involved in scams and irregularities in the banking sector should be punished but innocent people should not be framed,” said Dahal.
“Therefore, we decided to press for amendment of the act,” he further said.
Likewise, a committee headed by CEO of Nepal SBI Bank Anukul Bhatnagar has been formed for the statute amendment of the association. The association has realized the need for statute amendment to further strengthen the banking sector, to increase access to finance and to make the association stronger.
Although the new executive committee of the association was elected about a month ago, the executive committee members took charge of office only on January 4.