StanChart's Response to BK Shrestha's Remarks
Our attention has been drawn to an interview featured in your publication’s March 2009 issue with Mr B K Shrestha, the Chairman of Nepal SBI Bank Ltd. A section of the interview quotes about movement of SCB Nepal deposit to other banks to the extent of USD 70 million (NPR 526 crores).
We have been forwarding your publication to our SCB Headquarters on a regular basis as it presents several aspects of the Nepali business and economy. Upon receiving the March issue, the Headquarter wants to know the depth and genuinity of the statement made by Mr. Shrestha. We have been asked to respond.
Subsequently, upon our inquiry and investigation, the statement about departure of our deposit to other banks has not been established. In fact, our deposit portfolio has grown by more than 4% in the first quarter and by over 13% to NPR 35 billion in the second quarter of this Financial Year. We have not been able to establish any clues relating to the statement, which is factually baseless and incorrect.
Keeping our long standing mutual relationship and also respecting our obligation to part right and correct messages to the readers and general public, we would have expected you to verify this message with us prior to publication. You may agree that misleading information contribute to tarnishing the image of both individuals and institution together with loss of credibility of the concerned media featuring such items.
Keeping above in mind, may I request you to please issue a correction to the above statement in your upcoming issue of April?
- Diwakar Poudel
Head-Corporate Affairs
Standard Chartered Bank Nepal Ltd.
What is IME model?
It was interesting to read about the life of Chandra Dhakal, who founded the IME and made a meteoric rise in the country’s banking industry.
The article mentions the IME model, but does not explain it. Would you please shed light on this model that you say was emulated by Malaysia and praised by the World Bank, IMF and ADB?
- Manoj Wagle
Dhumbarah
Self-employment drive's fear of failure
Three articles in March 2009 issue of Nubiz ( the cover story on branching out strategy of banks, the management article on chemistry of entrepreneurship and the comment on youth self-employment drive) had a common thread.
As the interview with Parshuram Chhetry (the CEO of Bank of Asia) Published in your Nepali language weekly Aarthik Abhiyan has rightly pointed out, the banks are branching out of the Kathmandu valley not only to collect deposits. They have seen clear opportunities for investment in those locations. The youth self employment scheme should provide such bank branches with more clients.
But as the article on chemistry of entrepreneurship points out, one of the main elements needed in the promotion of entrepreneurship is venture capital and that is totally missing in Nepal. Though some bankers till last year were heard talking of their plans to start venture capital financing, they are now silent.
Against this background, the government’s youth self-employment scheme is likely to prove to be a failure but unfortunately that failure will be visible only after a couple of years when the banks start complaining that the money they have lent out is not being repaid by the novice entrepreneurs.
Had the government brought out the rules allowing banks to start venture capital funds, it would have fulfilled the purpose in more scientific manner. Moreover, it should further the business incubation system that was reportedly started a couple of years ago.
In addition to these two steps, the government should bring out an Apprenticeship Law so that the employers would be encouraged to employ inexperienced people as workers who would gain experience and become employable.
- Bivha Nepali
Damauli
