Rastriya Banijya Bank celebrated its 59th anniversary, what did CEO Shrestha said ?

Kathmandu : Rastriya Banijya Bank has celebrated the 59th anniversary day on the  occasion of crossing 58 years of its service.

The Chief of Rastriya Banijya Bank Executive Officer (CEO) Kiran Kumar Shrestha said that Rastriya Banijya Bank has achieved historic success.

On occasion Addressing the anniversary ceremony of the bank he informed that the National Commercial Bank has historically been able to give dividends to the government.

He said that RBB has been giving regular dividends to the government since the financial year 2075/76. He opined that RBB, which was established on 10th magh 2022 B.S (23th January 1965 A.D.) under the full ownership of the government, is one of the leading banks in the country and the only bank that provides banking education to the common Nepali citizens is the National Commercial Bank.

Similar to his statement :

First of all, I would like to express my warmest welcome and greetings to everyone here on behalf of the bank at this anniversary ceremony held today on the occasion of this bank completing 58 years and entering its 59th year.

While entering the third quarter of the current financial year, signs of hope have started to be seen in the economy and the overall banking sector. The growth of deposits in the banking sector is satisfactory, the liquidity situation is improving and the interest rate is decreasing, so the possibility of credit expansion is becoming strong. Published figures have shown that the arrival of foreign tourists has increased significantly by December 2023. Due to this, with the increase in income generation, employment and economic activities in the tourism sector, the possibility of investment by banks in this sector is increasing. Similarly, with the major variables of the external sector of the economy such as remittance inflow and the increase of foreign tourists, the expectation that the economy will move forward in a positive direction is mentioned in the review of the monetary policy.

On the other hand, in order to strengthen internal economic activities through the banking sector, Nepal Rastra Bank has made the guidelines on current construction loans more flexible, increased the limit of residential house loans, and loosened the existing risk burden provisions for share mortgage loans, real estate loans and hire purchase loans due to the expansionary policy arrangements from the banking sector. It can be expected that loan disbursement will gradually increase.

Likewise, if emphasis can be placed on the reconstruction of the structures affected by the recent earthquakes in Karnali and Sudurpaschim provinces, it seems that economic activity will become more sustainable. Through the positive effect of these policy and operational arrangements, the economy will become more dynamic and the overall business of the bank will expand and the important indicators of the banking sector such as deposits, loans, profits and decreasing bad loan ratio etc. will be improved.

Now, on this special day, I would like to say something about the glorious history of the bank. 58 years ago on this day B.S. Established on January 10, 2022 under the full ownership of the government, this bank has gone through countless ups and downs and reached today.This bank, which has built an image as one of the leading banks in the country, has been making contributions from teaching banking habits to the citizens of Nepal to boosting the country’s economy.The objectives of the establishment of this bank are to boost the national economy by expanding transactions in the banking sector, providing financial services and facilities, mobilizing the country’s financial resources, revenue collection and facilitating trade and commerce to support economic growth and development.

The bank has been fulfilling these objectives at every step. In the history of nearly 6 decades, Rashtriya Comercial Bank Limited has been facing various challenges. It is known to us that it even reached a state of crisis of existence at one time.After the financial reform program launched in collaboration with the Government of Nepal, the World Bank and the International Monetary Fund (IMF), we have gradually overcome those stressful times and reached the present situation.

As a result of the financial sector reform program, the bank has been able to strengthen the country’s banking sector and reach its current heights due to strong institutional governance, strong bank operation system, proper management of bad loans, strategic resource management, proper management of employees and dedication to customer service. According to the policy of making the public institutions owned by the Government of Nepal public limited companies. This bank was registered as a limited company on 6th Baisakh 2063. (19 April 2017 A.D), Currently, the company is operating in accordance with the Act.  On  2075 Baisakh, (April-May 2019 A.D), NIDC Development Bank merged with this bank and started integrated business.

The bank has taken various corrective actions in the last few years. The bank has been emphasizing on maximum resource mobilization and business expansion. The bank’s branch network has been extended to all 7 provinces and 77 districts and district headquarters of the country.

With the slogan of ‘Clean and Smart RBB with Consolidation’, the bank will focus on organizational structure, employee conduct, corporate governance, customer service, information technology upgradation, capital growth, physical infrastructure, marketing and re-branding of the bank, bad debt management, recruitment of new employees, productivity. Improvements have been made in aspects such as growth, compliance and risk management.

As a result, the bank It succeeded in becoming the commercial bank that earned the highest profit in 2074/75, 2075/76, 2076/77 and 2078/79, and  (2018/19, 2019/20, 2020/21, 2021/22, 2023/24)  the commercial bank that paid the highest tax in 2074/75. (2018/19) A.D.)

For the first time in its history, the bank has been able to give dividends to the government since the financial year 2075/76 (2019/19 A.D), and the bank has succeeded in continuing this practice.