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| Kathmandu, Thursday September 26, 2002 Ashwin 10, 2059. |
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ICC Bank submits detail
mgmt plan
Post Report
KATHMANDU, Sept 25 As per the final agreement signed between
Nepal Rastra Bank (NRB) and Irish ICC Bank regarding the management hand-over of Nepal
Bank Limited (NBL), the ICC Bank has submitted a detailed management plan of the NBL to
NRB.
J Craig, Chief Executive Officer (CEO) of the
NBL today presented three sets of detailed management plan to Rajan Singh Bhandari, Chief
of the Banking Operation Department of the NRB on the last day of the extended deadline.
The NRB had earlier extended the deadline of
submitting the report by 20 days after the ICC bank requested for it citing need of some
extra time for a comprehensive study to prepare the report. As per the agreement, the ICC
bank had to present a detail management report within 45 days of the takeover of the
management of NBL.
In its detailed management plan, the ICC bank
presented separate reports on financial evaluation, budget, and management planning.
"All the proposed planning would be implemented after it is passed from the
management committee of the NBL," Bhandari said.
After series of lengthy and controversial
saga, the NRB had signed an agreement with the Irish ICC bank to hand-over the management
of NBL, the oldest and one of the financially bankrupt commercial bank of the country.
During the crucial hand-over negotiations, both the sides had to review the terms and
conditions of the final agreement after six months of management take-over of NBL by the
ICC Bank.
As per the agreement, the ICC Bank has to
bring down the existing Non Performing Assets (NPA) of the bank, which is currently at
around 40 per cent, to 10 per cent within the contract period of two years.
Similarly, as per the agreement, the ICC Bank
will also be responsible for the default of any loan investment extended after it takes
over the management of the NBL. The government had decided to hand-over the management of
the two largest banks, NLB and Rastriya Banijya Bank (RBB) after KPMG Barnet, an
international auditing firm, declared the banks as technically insolvent.
During the global tender call for the
management transfer of the NBL, three international consultative firms had competed, which
include PriceWater-HouseCoopers, ICC Bank and Ernst and Young International.
PriceWaterHouseCoopers had quoted the lowest price demanding US $ 4.95 million while the
ICC Bank and Ernst and Young International had quoted US $ 4.98 million and US $ 8.69
million respectively.
However, due to some serious technical problems in the tender
of the lowest bidder, the government invited Irish ICC Bank for the final negotiation of
NBL management hand-over.
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