National 6 (Spotlight Weekly)

Banking And More

Finances apart, the NIBL is focusing on key areas of customer satisfaction creating an image of a reliable bank within a short span

By A CORRESPONDENT

Unlike typical crammed space one is likely to encounter in counters of most of the banks, the Nepal Investment Bank Limited (NIBL) offers a breath of fresh air as it has focused on space creations to provide the customers with the maximum possible comfort.

NBL office : Distinct

The spacious and multiple teller counters; sprawling parking lots; spick and span environment and cordial staffs greet the customers. Paintings of Nepalese artists hug the walls of neatly decorated office counters and rooms. Just recently, the bank has completed the renovation of its Head Office at Durbar Marga. It has invested Rs 20 million for infrastructure build up and internal decorations.

Ever since then Nepal Indosuez Bank transformed into Nepal Investment Bank Limited in 2002, the bank management has been able to display impressive progress.

The NIBL offers a number of distinct services. It is the first bank to offer 365-day banking. For the benefit of the customers, the bank has introduced year-round service without a break.

It is the first bank to introduce Visa electron debit card. The bank is a primary member of VISA. This service has been particularly helpful to those Nepalese who visit India as they no more need to carry loads of cashes when going for educational or medicinal purposes. It is also evolving as a Nepali bank with truly global connections. Holders of dollar account can use the debit card in countries around the world.

Plus there is no hassle in getting the debit card. Being a customer (depositor) in the NIBL is enough. All the depositors are given this card on request. They only need to pay Rs 200 a year for this additional service. It is as simple as that. No wonder, the bank is the leader in the debit card. It already has 14,000 members who have received the card.

The NIBL is also the first non-governmental bank that introduced the concept of providing loans against gold or silver.

Customers can also pay the bills of their mobile phones to the Nepal Telecom through the ATM. This has reduced a lot of hassles for the customers who now do not need to go to the Nepal Telecom’s offices and stand in serpentine queue to pay their bills.

For the sake of its customers, the bank plans to set aside special counters for customers with deposits over Rs 1 million. Likewise, separate counters will be made available for those customers whose deposits are in between Rs 100,000 to Rs 1 million. However, the bank wishes to ensure quick services to all its customers.

Even though these services appear to be cosmetic ones they go a long way in winning over the hearts and minds of customers especially when they come backed up with strong financial vital statistics.

The bank has the authorized capital of Rs 1 billion (recently raised from Rs 590 million). Its paid-up capital stands at Rs 295 million. As per the bank reports, in the year 2060/61 (2004), the bank managed to earn net profit of Rs 153 million, an increase of 30% over last year 2003 when it was declared the Bank of the Year.

The total deposits as of June 2004 stood at Rs 11.52 billion – a remarkable 45.5% increase from the previous year-end. Similarly, the lending increased to Rs 6.92 billion – an increase of 20%.

Most importantly, the bank has been able to maintain the ratio of non-performing assets (NPAs) at 2.4%, one of the lowest in the industry and well within international norms. Owing to its handsome progress, the 18th Annual General Meeting (AGM) of the bank held on January 13, 2005, decided to give 15% dividend to its shareholders from the profits as well as approved the call for a rights issue of 1:1.

At present, the bank has 12 branches including outside the Kathmandu valley in Birgunj, Banepa, Biratnagar, Butwal, Jeetpur, Pokhara and Bhairahawa. There are over 325 staff members in total working hard to translate the motto “The Bank With A New Look” into reality.