Kathmandu; Today is the last day of Chaitra, 2076 and also it is the closing day of the third quarter for the banker. The whole world economy is affected due to this COVID-19 and lockdown. Many countries are under lockdown for many weeks and it is directly effecting on the economy. At present, the preparation of the third-quarter financial report to banks and financial institutions is in full swing. However, the bankers say; there will be a decrease in income and profit as the business is stagnant beyond the last 1-month due to lockdown.
‘Due to the failure of the customer to come to the bank, the income of the foreign exchange has not been as high as the date. Currently, on one hand, the business is stagnant and on the other hand, the borrower’s instalment has also been extended to pay till last quarter i.e on Ashadh 2077, “said Bhuwan Kumar Dahal, Chairman of Nepal Bankers’ Association. At this time, the bank’s business is stalled due to lockdown. Chairman of the Nepal Bankers’ Association Dahal said that; there was no other transaction than normal payment at the bank. According to him, the impact will be reflected in the third quarter financial statements.
Banks have been encouraging digital banking in lockdown. However, there was not much difference in income from the digital transaction. According to Sunil KC, Chief Executive Officer (CEO) of NMB Bank, the banking business, tourism and transport business are stagnant, which will affect the third quarter. He added that; there will be minimizing in income & profit because currently there was no new guarantee issued, lack of additional deposit and debt collection. ‘Employees were frequently followed up to collect pre-existing loan instalments and interest. It was about getting loans up. In the last one month, such work has also stopped.
This time, the bankers are thinking of preparing the quarterly report and submitting it to the Nepal Rastra Bank but they are thinking not to make public. However, the spokesman of the Nepal Rastra Bank Gunakar Bhatt said that the current arrangement could not be broken. “However in international practice but here is a provision for banks to provide information about financial reports through daily newspapers. Banks cannot hide business information. It must be transparent and public, ‘Bhatt says.