‘Economy overcrowded with banks’

K.R Iyer, Chief Executive Officer of Nepal Industrial & Commercial Bank Ltd. (NIC Bank), started his banking career in 1966 with the State Bank of India. Iyer also served Exim Bank of Tanzania Ltd. as a managing director. Since June 1998, Iyer has been associated with the NIC Bank as its Chief Executive Officer. Iyer, with more than 33 years of experience in banking sector, is committed to promote his institution. While talking to The Rising Nepal, at his office at New Road in different issues related to business and economy, Iyer says, ‘There is much room for improvement.’ Excerpts.

TRN - How do you evaluate the overall economy of the country ?

Iyer - In fact, the overall economy of the country is not pessimistic. It is gradually advancing with the growth of new industries and technology. As a banker, I am very hopeful about steady progress and ready to support new industry which is technically new and help promote economy.

TRN - To what extent does NIC Bank differentiate itself from other private banks ?

Iyer - Well, NIC is not the bank of different nature, but we have tried to make it a little different from other joint venture banks. It is not a joint venture. And from the very beginning we have given top priority to provide banking services to all kinds of people even in the areas where other private banks have failed to provide service. We have opened four branches within one year and two more branches are in the pipeline.

Though the prime objectives of private banks are of the commercial one in nature, the NIC feels its social responsibility too. Hence it provides services to all clients without any discrimination. We provide our service even to poor and small savers living in different parts of the country.

TRN- What is the objective of the NIC Bank ?

Iyer - The mission of the bank is to contribute to the national development by providing effective banking services to trade and industry that help prop up country’s overall economy.

TRN- What are the priority areas of your bank ?

Iyer - I have already told you that besides earning profit, the NIC Bank really aims to contribute something to Nepal’s economy by making investment in industries that help accelerate economic growth. I am always ready to invest in the core industry with new technology that can substitute import in a significant manner.

TRN - General public have a perception that NIC Bank mainly deals with the big business houses and industrialists. If it is true, how do you provide services to the general clients ?

Iyer - No. In fact, the NIC has been established for all. Even small savers can deposit their savings in our bank. But, whatever the transaction you do, that is overtly or covertly related to the economic activities. It is, of course, we deal with big business houses and industrialists.

TRN - How do you observe Nepal’s stock market ?

Iyer - It is still at the incipient stage. But it is gradually picking up along with the economic development. It takes time.

TRN- Since past couple of weeks, NIC has hit the market stock market. What could be the reason behind the overwhelming response of the investors in the NEPSE ?

Iyer - The profit earned by the NIC Bank in a short span of time could be the main reason of attraction. As a matter of fact, the investors evaluate an organisation on the basis of performance and annual turnover. I should take it as the reflection of investor’s response.

TRN- How can your bank help open up new industries ?

Iyer - As I have already told you that NIC is always positive in the areas of technology transfer and core industries with new improvements. The performance of commercial banks also depends upon its approach and the style of management.

TRN- Having looked at your turnover, one can say that NIC Bank is one of the successful private banks in the country. What could be the reason behind your success ?

Iyer - Well, there could be various reasons behind this. But the fast decision making process, maintaining confidentiality of clients and data base system could be some of them. Our parties (clients) do not have to go through a long process while dealing with us. It is done very promptly at the level of managers.

TRN- What are the constraints that you have been experiencing ?

Iyer- Till now I have not come across any specific problems. But lack of proper data (data of business houses) create some problems while assessing their real financial strength. Their system of keeping two types of records has created problems for banks. In most of the cases, they do not provide reliable and meaningful data.

TRN- What do you think about the role played by the central bank ?

Iyer - Nepal Rastra Bank (NRB) has played a very positive role in regulating the banking system. It is very effective. Besides, the government has encouraged banking sector to a great extent.

TRN- What do you think about establishing more banks ? Isn’t it enough ?

Iyer- Of course. It is getting overcrowded at present. There is a need to take a break.

TRN- How do you observe the banking system in Nepal ?

Iyer- The banking system in Nepal is much more advanced. Since Nepal has one of the best telecommunication services in the region, banking system can still be better.

TRN - Are you going to introduce any new programmes for your clients ?

Iyer - The NIC Bank does not have any such programme right now. But it keeps providing better services to all. Our main motto is to provide service to all the people and contribute something to the national development.

TRN- Prime Minister Girija Prasad Koirala is visiting India very soon, so what could be the possible economic issues for discussion ?

Iyer- Among many issues to be raised, the Nepalese delegation can press India to eliminate unnecessary tariffs on Nepalese goods going into Indian markets.