Search for NBL, RBB CEOs

Bankers from within the country and abroad have applied for the top posts of country's largest and oldest banks - Rastriya Baniyja Bank (RBB) and Nepal Bank Limited (NBL). In response to the vacancy placed by Nepal Rastra Bank on Dec. 23 to fill up the posts of Chief Executive Officers in RBB and NBL, more than 12 Nepali and foreign top level bankers have sent their applications, said NRB sources.

The central bank took over the management of the two banks in 2002. The deadline for the application ended on Friday midnight. Sources confirmed that even former CEO of Nepal Bank Limited J Craig McAllister has also applied for the top post of one of the banks. McAllister during 2002-2006 was the CEO of NBL when the bank's management was handed over to the management ICC bank of Ireland.

During almost the same period, RBB management was also handed over to foreign management and a team led by Bruce F Henderson had led the bank from 2003-2007. The two banks were brought under foreign management as part of reform process and it was supposed to be completed in two years. Nonetheless, the two troubled banks still are under reform process. NRB sources said three Bangladeshi nationals also have applied for the posts.

Any aspirant CEO is eligible to apply in both the banks, according to NRB. According to an NRB official, even the Indian, Sri Lankan, Bangladeshi and American bankers have shown interest to apply as well. "The application deadline was open until Friday midnight. So, even after the closure of the office Friday afternoon, there could have been some more online applications received. So, the number of applicants may be higher, which will be confirmed once the bank opens on Sunday," said the NRB official.

Senior employees of NBL including, Acting Deputy General Managers Kiran Kumar Shrestha and Mahesh Sharma Dhakal also have been learnt to have applied to get the top rung of the banks. "CEOs currently working in different banks in Nepal though had not applied until Friday noon," said the source. This is fifth successive attempt by NRB to fill up the posts. Earlier, the central bank failed to recruit anyone for several reasons including lack of adequate applications. In some cases, NRB could not tap banker with sound financial and technical qualifications required for the posts. The term of Janardan Acharya, who is currently leading the management at RBB, is expiring on Jan. 15. Acharya said that he has not applied for the post citing reasons that it would be problematic to apply for post he currently is serving.

NRB source said the central bank extended his term till Jan. 15 so that a new management can be in place after the hiring procedure completed. But, Acharya expressed ignorance about any such NRB decision. According to NRB, a selection committee headed by the deputy governor and comprising representatives from the Ministry of Finance and Office of Auditor General has been formed, which will select the appropriate candidate for the job. The committee will at first evaluate the technical qualifications of the candidates and negotiate with the potential CEOs for salary and benefits. "The selection process can be completed within a month," said the source.

But, the source could not confirm whether the process will be concluded before the new governor assumes office and it will be completed after the new governor is appointed. The two banks are yet to recover from their negative net worth amounting to Rs. 5.59 billion in case of NBL and Rs. 14.34 billion in case of RBB.
Source:eKantipur