We won’t go for a merger unless we reduce our non-performing loan (NPL) which stands at 19%. If we are to go for merger, the merged entity should have NPL below 5% after adjusting for our NPL.
Grand Bank Nepal Ltd went into red in 2013/14 as its non-performing loan shoot up to 19 percent. Due to huge loan default, the bank provisioned Rs 1.93 billion for the possible loss which caused it a net loss of Rs 1.61 billion in the review period. This came as a shock to the investors who received 4.75 percent cash dividend a year earlier. Parshuram Kunwar Chhetri took charge of the bank in May this year when the bank was passing through a difficult phase. Sagar Ghimire of Republica recently talked to Chhetri to know about reasons behind the bank´s bad health and his recovery plans. Excerpts:
The bank was in a good shape until the third quarter. What went wrong in the last quarter?
It has been more than a year that stakeholders have been working to prepare a directive to facilitate the bullion industry of the country. The directive was aimed at expediting the growth of domestic bullion market by formulating a proper and inclusive monitoring standard. However, stakeholders have not been able to give final shape to the draft directive due to lack of understanding among stakeholders regarding purity level of gold, profit margin and ways to monitor bullion outlets. As a part of Nepal Republic Media´s fortnightly round table on emerging market issues, a round table meet was conducted on the prospects, needs and challenges of the domestic bullion industry. Sujan Dhungana presents excerpts of the discussion.
We should come to an understanding on purity level
The December agreement between Nepali Congress, CPN-UML, UCPN (Maoist) and Madheshi parties, which envisions, among other things, forming a High Level Political Committee (HLPC), has become a bone of contention now. While NC and UML have ruled out forming any political body outside CA, UCPN (Maoist) Chairman Pushpa Kamal Dahal has threatened to obstruct House proceedings if ruling parties don’t address his demand. Why such hard stance when parties should be working on war footing for timely statute? What is the relevance of HLPC when Maoist party heads by far the most important CA committee, Committee for Constitutional and Political Dialogue and Consensus (CCPDC)? UCPN (Maoist) treasurer Haribol Gajurel, who is also a close confidante of chairman Dahal, defended party’s stand in a conversation with Mahabir Paudyal and Ashok Dahal Wednesday afternoon.
Why do we need to revive HLPC at this hour when statute drafting process seems to be going toward positive direction?
Shashank Srivastava, the executive director, International Marketing and Product Planning of Maruti Suzuki, India was here in Nepal to study the automobile market and prepare for the launch of Maruti Suzuki Celerio. Sujan Dhungana of Republica met up with Srivastava to talk about Maruti Suzuki´s future plans and strategies in Nepal along with prospects and challenges facing Nepali auto industry. Excerpts:
Can you elaborate the purpose of your visit to Nepal?
This is the third time I´ve been here to Nepal. On each of my visit to Nepal, I´ve been witnessing that the automobile market of Nepal is growing significantly. Thus, as that of earlier visits, my visit to Nepal this time too aims to search ways and develop strategies on how the market of Maruti Suzuki can grow here. Likewise, my visit this time also intends to make necessary preparations to launch the Maruti Suzuki Celerio here in Nepal. We are preparing to unveil the new Celerio amid the NADA Auto Show next month.