Transactions of BFIs nosedive as clients, staffers show reluctance to enter office

KATHMANDU, May 13:

Though most of the banks and financial institutions (BFIs) resumed normal operation on Wednesday, transactions fell significantly as only few clients approached the BFIs for banking services on the day.

Similarly, only a few staff members returned to their respective offices after a powerful quake jolted the country on Tuesday.

"Except three or four branches, all offices of our bank are operating as usual. However, it seems that staff and clients are a bit panicked. Their turnout was low on Wednesday," Krishna Prasad Sharma, CEO of Rastriya Banijya Bank Ltd (RBBL) -- a state-owned bank with a biggest network across the country—told Republica. "Though all services are available, the number of transactions went down significantly in both the worst and least-hit areas."

Fearing recurring tremors and aftershocks, Civil Bank Ltd operated its head office under open sky on Wednesday. "The situation inside the office went haywire on Tuesday after the earthquake. Staffers and clients ran outside the office leaving all the cash and documents unattended," Civil Bank's CEO Kishore Maharjan told Republica. "We operated under open sky on Wednesday to avoid such chaos."

Maharjan also said number of clients fell significantly in most of their branch offices. "In many branch offices, there were only three or four clients. Our staff members were also scared to enter into the office," he said, adding that most of the branches, except eight suffering physical damages, were operating normally on Tuesday.

Four banks, which Republica visited on Wednesday, wore deserted look. There were few staff members, and some had few or no client at all.

According to Anil Shah, vice president of Nepal Bankers Association (NBA), almost all BFIs resumed normal operation on Wednesday. "Transaction, however, was very low in most of the BFIs as only few clients approached the banks due to fear of earthquake," Shah, who is also the CEO of Mega Bank, told Republica. "There were some connection problems due erratic Internet service. Otherwise the ATM outlets were also functioning properly."

Meanwhile, BFIs are still struggling to take the stock of their branch offices in Dolakha. Araniko Development Bank's branch office is reported to have been destroyed with some human casualties. According to RBBL's CEO Sharma, they are yet to establish contact with their branch in Charikot to assess the damage due to Tuesday's fresh earthquake.

NRB ASKS BFIS TO REPORT DAMAGES

Nepal Rastra Bank (NRB) has urged all BFIs to report damages in their offices as well as impact on their assets by the earthquake.

"We have told BFIs to report their situation, including the impact of the quake on their loans and assets, as soon as possible," NRB spokesperson Min Bahadur Shrestha told Republica. "Most of the BFIs have said that they will need at least a month to submit report as they are still to study their assets and borrowers condition," said Shrestha. "We can tell how much impact the quake has made on their assents and how it is going to affect their balance sheets once after we get their reports."

Source: Republica