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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
</tr>
</tbody>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
</p>',
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
</p>',
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
</tr>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
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Tulasi R. Gautam, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. Excerpts:
It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped?
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.
If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank?
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger.
The financial condition of your bank does not seem to have improved very much after the merger. What is the reason?
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank.
In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it?
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.
You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming?
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned.
Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion?
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.
After the merger there is generally chaos among the staffs. How did you manage it?
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.
How do you evaluate the present situation of commercial banks?
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good.
What are the existing problems in the banking sector?
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.
It is said that banking sector suffers lack of skilled manpower. Is it true?
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well.
These days the operational risks are getting high in banking sector. How do you consider this?
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk.
Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this?
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.
What is the likelihood of further mergers with Machhapuchchhre as one of the parties?
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
</p>',
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
</tr>
</tbody>
</table>
<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
</table>
<p>
</p>',
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
</tr>
</tbody>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
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<b>Tulasi R. Gautam<br />
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
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<b>Tulasi R. Gautam<br />
</b>CEO<br />
Machhapuchchhre Bank Limited</td>
</tr>
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<p>
<strong>Tulasi R. Gautam</strong>, CEO, Machhapuchchhre Bank Limited (with which Standard Finance Ltd was merged on 9th July 2012) talks to The Corporate’s Yagya Banjade and Sweta Sharma about the achievements of his bank and the overall situation of commercial banks in Nepal. <strong>Excerpts:</strong></p>
<p>
<strong>It has been a year since the merger of Standard Finance into Machhapuchchhre Bank. How has that merger helped? </strong></p>
<p>
It was the largest merger of two independent organizations in Nepal till recently. And the results to date are good. We received quite good response from the market. All the assimilation was done before I joined the bank. The most encouraging point is the branch network. We now have 54 branches with one extension counter and 65 ATMs covering 29 districts. Talking about business, the loan rate was 16 billion and today it is 21 billion. I call this ‘an average growth’ in the context of our banking sector. We have more than 350,000 customers. According to our latest data (1st July 2013), we have 21.16 billion loan outstanding, 25.51 billion in deposits and the CDC ratio is 76.25 per cent. We have paid up capital of 2.47 billion. Considering all this, I can say we are doing quite well.</p>
<p>
<strong>If Nepal Rastra Bank (NRB) really asks banks to increase the paid up capital further, what will be the situation of your bank? </strong></p>
<p>
NRB will definitely give a time frame to banks for increasing the paid up capital. Some banks may be able to generate the capital on their own. Those who cannot will opt for merger. </p>
<p>
<strong>The financial condition of your bank does not seem to have improved very much after the merger. What is the reason? </strong></p>
<p>
It is not necessary that after merger the financial condition should improve drastically. The merger adds figures on some parameters and that definitely has helped uplift the financial condition of the bank. The board of directors and the management team contribute equally to uplift the situation of a bank. </p>
<p>
<strong>In the third quarter of current fiscal year, your bank’s bad debt was 2.73 per cent which is considered high. What do you think about it? </strong></p>
<p>
Yes, this year we are looking for improvements. After merger, there have cropped up several issues that need to be settled and we are working in managing that. I believe that a bad debt of 2.73 per cent is quite high and in next year we will reduce it to 1.5 per cent.</p>
<p>
<strong>You brought into some staff from Nepal SBI into Machhapuchchhre in a number of key positions. Are more people coming? </strong></p>
<p>
There were enough staffs when I entered this bank. But for few key posts we needed some new employees. So four people from Nepal SBI and one from Sanima came and joined us. But it was not pre-planned. </p>
<p>
<strong>Staffs that were earlier in Standard Finance are working in Machhapuchchhre two levels below where they were in Standard Finance. What has been the repercussion of that demotion? </strong></p>
<p>
It cannot be called a demotion. We can call it ‘adjustment of the post’ and that adjustment was at maximum to two levels considering the profiles of the individuals. None of the staff have left the organization due to this reason. This issue was being settled in a participatory manner among staffs themselves before I was appointed.</p>
<p>
<strong>After the merger there is generally chaos among the staffs. How did you manage it? </strong></p>
<p>
When two organizations merge, the work culture also gets merged and there will be problems in hierarchy. The major difference is in the system as both organizations have their own system of working. In this situation, there should be high level of understanding among staffs. In my view, if the merger is between organization of similar level then there will not be any problem except in the CEO level. Next point I learnt is that if the merger is going to happen, staffs will feel some sort of insecurity about their job. But a proper communication will remove that feeling of insecurity. Transparency in the system will help.</p>
<p>
<strong>How do you evaluate the present situation of commercial banks? </strong></p>
<p>
Some banks which have huge investments in real estate are facing some problems in loan recovery. Few banks which solely focus on banking are doing good. Overall, in my view, the situation of commercial banks is quite good. </p>
<p>
<strong>What are the existing problems in the banking sector? </strong></p>
<p>
The first and foremost problem is our unstable economy. The liquidity is highly fluctuating and unpredictable. If the government budget comes in time, things might go smoothly for banks as well. We need new avenues for lending with new business coming in the market.</p>
<p>
<strong>It is said that banking sector suffers lack of skilled manpower. Is it true? </strong></p>
<p>
It is not like that. We are doing a good business for long. That would not have been possible without skilled manpower. For past three years, new commercial banks have not started as NRB has stopped giving license to new commercial banks. This shows that till now there are skilled people who are operating banks quite well. </p>
<p>
<strong>These days the operational risks are getting high in banking sector. How do you consider this? </strong></p>
<p>
It is due to some promoters working for their own benefit. Next reason could be reckless lending. The software and system are also responsible for increase in the operational risk. </p>
<p>
<strong>Nepal Rastra Bank has drawn the line between bankers and businessmen. What are your comments on this? </strong></p>
<p>
It would have been better if in the first place businessmen were not allowed to enter banking sector at all. Initially they opened the door and now they want the businessmen out. This has created some discomfort but overall this directive from NRB might be for the good of banking sector though it is yet to be finalized.</p>
<p>
<strong>What is the likelihood of further mergers with Machhapuchchhre as one of the parties? </strong></p>
<p>
Some developmental banks and financial institutions have approached us with merger proposals. But as we are just fine tuning the organization after the merger of Standard Finance into us, we are not moving towards another merger for now.</p>
<div>
</div>
<table align="right" border="0" cellpadding="1" cellspacing="1">
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<p>
</p>',
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