Banks and financial institutions should help economy make productive

Banks and financial institutions should help economy make productive

Finance Minister Shankar Prasad Koirala requested the banks and financial institutions to help make economy productive. Addressing the 47th anniversary of Agricultural Development Bank Ltd, he said that the banks and financial institutions should play a lead role in transforming import-based economy into a production-based economy. "The state-owned banks should also become competitive," he said, adding that the government is planning to lower gradually its stake in the bank to make it more competitive and self dependent. "The government has adopted zero-interference policy in the public enterprises." Central bank governor Dr Yuba Raj Khatiwada, on the occasion said that the government intervention shouldn´t be taken otherwise. "The government has its responsibility toward depositors and tax payers," he said, adding that it has to keep vigil on the banks and financial institutions. Urging the bank to float agri-loan at lower interest rates, he said that the older institutions do not mean they are financially strong. "They should also look back at the society and get involved in the corporate social responsibility." Banking reform would help boost production, income, efficiency and good governance, said Nepal Bankers' Association (NBA) president Rajan Singh Bhandari. Chairman of the bank Pramod Kumar Karki, on the occasion, vowed to make the bank more competitive and efficient in service delivery. Briefing about the bank's plan of bringing strategic partner, chief executive of the bank Tej Bahadur Budhathoki said that the strategic partner will be inducted within September. currently, the government holds 51 per cent stake, whereas it plans to sell 30 per cent shares to the strategic partner. The bank – that has Rs 9.63 billion paid-up capital bank – has Rs 13 billion authorised capital. The bank has 243 branch network and is listed in the Nepal Stock Exchange. The bank's shares has been trading at around Rs 490 per unit. The bank has listed 31,930,000 units of its shares at the Nepse.
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