KATHMANDU, JUNE 28
With their monetary place being hit and anticipated to be hit even tougher within the coming months as a result of COVID-19 pandemic, banks and monetary establishments (BFIs) are falling again on austerity measures together with not renewing the settlement of these engaged on contract foundation, decreasing allowances of staffs and bringing down the executive prices.
Whereas just a few banks have already stopped renewing agreements of these engaged on contract foundation for fastened phrases, others are wanting into potential austerity measures in a win-win scenario for each banks and the employees.
“Downsizing staff and reducing the salary is the last option and we are not looking into this at present. However, bankers are studying effective austerity measures that could be adopted which will benefit both banks and staffs,” mentioned Bhuwan Dahal, chief govt officer of Sanima Bank and in addition the president of Nepal Bankers’ Affiliation (NBA) — the umbrella organisation representing 27 business banks in Nepal.
NBA has fashioned a devoted committee underneath the coordination of Anukool Bhatnagar, managing director of Nepal SBI Bank, to check potential austerity measures that banks ought to undertake to deal with the disaster scenario. “The committee is expected to submit its report by mid-July and banks will adopt measures recommended by the committee,” knowledgeable Dahal.
Dahal knowledgeable that ‘work from home’ development has helped banks cut back operation value to some extent, particularly transportation and fuel-related prices and banks are additionally exploring different measures to carry down operation value. “One way that operation cost of banks will come down is by not renewing work agreement of those staffs who are working on contract-basis for fixed term,” he added.
Nonetheless, Dahal mentioned that austerity measures ought to be a win-win scenario for all events.
“In the name of reducing operation cost we cannot take decisions that directly affect the livelihood of staffs. It is unfortunate that even big corporate houses booking huge profits are reportedly cutting down staff’s salary and downsizing their employees,” he talked about.
In the meantime, bankers are additionally getting ready to cut back the variety of ATM cubicles in a bid to carry down value. “Several banks have ATM stations that are located at very close distance from one another which might not be required now as people are increasingly preferring digital payment and mobile banking services. Cutting down number of ATMs will bring down operation cost of banks in terms of rent and machine import,” mentioned a banker searching for anonymity.
A model of this text seems in e-paper on June 29, 2020, of The Himalayan Occasions.
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