Kathmandu. Commercial banks, which have aggressively expanded the bank’s branches, are planning to reduce the bank’s branches. Banks are planning to reduce the number of customers going to branches with the increasing digital banking.
According to nrb data, banks have 5,056 branches so far. Amidst declining income and rising expenses, banks have reached the branch cut scheme. Chief Executive Officers (CEOs) of commercial banks have calculated that the annual expenditure of banks and financial institutions will be saved by cutting branches.
The CEO of a bank told Singha Durbar, “Rastra Bank has a plan to promote digital banks, with the increase in the use of mobile banking and digital banking, the number of customers coming to the branch is also decreasing. Employees working in that branch can be shifted to other jobs. ”
According to the CEO, 20 commercial banks can reduce up to 400 branches. It is estimated that rs 2 billion will be saved in the banking sector from this reduced branch. Bankers say that the employees will not be inconvenienced by the branch cut. Around 2,000 bankers migrate annually.
Bankers say that stopping the recruitment of new employees for a few years will not make it difficult for the employees. A CEO said, “It is not necessary to reduce the branch and remove the employees of the bank, but the employees who have come from the branch cut can be employed in other jobs. It also increases the bank’s ability to function. Every year, 2,000 employees migrate from the banking sector and there will be no problem if new employees are not hired for a year. ”
Bankers have also demanded that the upcoming monetary policy review should open the way to reduce bank branches. According to the banks, it costs an average of Rs 5 million annually to operate a branch. Although there has been a significant increase in expenses with the increase in the number of branches, the income and profit have not increased accordingly.
Therefore, commercial banks have now demanded the Rastra Bank to include the provision of cutting branches in the monetary policy. At present, banks have opened bank branches in all 753 local levels.
Once upon a time, bankers were competing with each other to open branches. Banks with many branches had taken advantage to increase deposits due to high interest rates. But now the deposits in banks and financial institutions have increased and the flow of credit has decreased.
How many branches of a bank
According to nrb data, two commercial banks are operating more than 400 branches so far. Nic Asia Bank has the largest number of branches in the country with 479 branches across the country.
Similarly, Global IME Bank has been ranked second in terms of operating the highest number of branches. The bank has so far opened a total of 424 branches.
Similarly, Prabhu Bank has 377 branches, Rastriya Banijya Bank 354, Kumari Bank 353 and Nepal Investment Mega Bank 338 branches.
Similarly, Nepal Bank has 290 branches, Nabil Bank 288, Krishi Bikas Bank 287, Laxmi Sunrise Bank 284, NMB Bank 212, Citizens Bank 200, Himalayan Bank 197, Siddhartha Bank 197. Prime Commercial Bank operates 194 branches, Machhapuchhre Bank 178, Sanima Bank 133, Everest Bank 133, Nepal SBI Bank 123 and Standard Chartered Bank 15.
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