Fourth NRB call for NBL chief soon

After the failure to appoint chief executive officer(CEO) for the Nepal Bank Limited (NBL), Nepal Rastra Bank (NRB) has decided to call expression of interest for the post for the fourth time.

Sushil Ram Mathema,executive director of NRB said NRB is in a process of consultation with the WorldBank (WB), the major donor for the financial sector reforms project in Nepal.

Currently, the NRB'sown team is handling the NBL management.

"The new tender will be called after obtaining 'no objection' letter from the World Bank," said Mathema, who also heads the financial sector reform project in the central bank.

NRB will appoint the CEO for one year with the provision of possible further extension if required.

Very few CEO aspirants showed interest to work in NBL in the earlier notices.

Although the tender called the third time had succeeded to attract three CEO aspirants, the process of selecting the CEOs from them could not move ahead as one of the competitors Suk Dev Shah did not present any required proposal,according to an NRB official.

"Shah's name was invalidated for his failure to submit proposal leaving competition between just twopeople," said the NRB official.

"The tender process could not move ahead as regulations required competition among at least three competitors."Shah's name has been proposed as the Nepal's ambassador for the United States by the previous government.

The NRB is in a mood tobe more flexible in qualifications of the CEO in the next tender. "We will also talk with the World Bank in this regard before setting the criteria," Mathema said.

"We want to create an environment for competitions among more individuals,"he said.

The last tender had opened doors for even lower ranking bank managers with relatively long experiences. "In the latest terms of reference even to the deputy heads of financial institutions could apply," said Mathema. But they had to have at least seven years experience in the banks and other required qualifications.

Since the WB will be paying for the CEO and his/her team, NRB has to consult with the WB before taking any decision regarding the new management.

External Affair specialist at the WB Rajeeb Upadhyaya said that WB would encourage handing over of the NBL management to professionals instead of NRB continuing to managing it.

He said that that the issue of demanding expression of interest from the aspirant CEOs would be settled through discussion with the concerned Nepali authorities.

The NBL has been in the NRB control for the last seven years as its financial health deteriorated due to huge default cases.

Although the proportion of its non-performing loans has decreased, its net worth is still negative making its financial health is still vulnerable.

"The new tenderwill be called afterobtaining 'no objection'letter from theWorld Bank."
Source:
Ekantipur