Differences have cropped up between Nepal Rastra Bank (NRB) and the foreign management of Nepal Bank Limited (NBL). The central bank is of the opinion that the foreign management has been able to perform in line with the reform objectives in the oldest bank of the country. But the NBL foreign management?ICC Group of Scotland?has blamed the government of not cooperating for the reforms. NBL Chief Executive Officer Craig McAllister complained that the government reform programs were not moving because the government had not yet formed the promised asset management company. The judiciary has also not cooperated with our reform process. But the NRB has blamed the foreign management of not making any progress compared to the reform plans. We had awarded the management contract with certain objectives. But, the progress is not satisfactory, said central bank governor, Tilak Rawal.
Under the financial sector reform program of the government, the management of the NBL was handed over to the ICC group for a two-year contract. Without extension, the foreign management now has only five months left. When the NRB and NLB signed an agreement almost two years ago, the condition was that the government would have to establish an asset management company and the foreign management would have to bring the 60 percent non-performing asset of the bank down to 10 percent. With time running out, it is almost impossible for the foreign management to do that and that is fanning criticism on its performance. The latest record shows that Rs 11 billion of the 18 billion in outstanding loans are non-performing.