Nabil, Mega, Century and Machhapuchchhre Banks functioning without CEO; whom to blame?
Sun, Feb 25, 2018 4:00 PM on Latest, Featured, Corporate, Stock Market,
With the NEPSE indices going down and growing liquidity crunch in Nepalese Economy, the need for outstanding leadership in banks and financial institutions has become more critical. But contradictory to what we need, currently four commercial banks have an empty chair behind the CEO’s desk. These banks namely are: Nabil Bank, Century Bank, Mega Bank and Machhapuchchhre Bank.
As per the NRB directives, a CEO can’t take the position of CEO in another bank before six months of his/her resignation. Similarly, the banks can’t operate without CEO for more than three months. Like all the other directives, these also exist for a reason and as of now these directives have become the reason for an empty position.
After completing two tenures as CEO at Mega Bank, Mr. Anil Keshari Shah, resigned his position. Currently, Ms. Anupama Khunjeli is looking after the operations at Mega Bank as the Acting CEO, which effectively has left the seat for CEO empty. However, as per the directives as mentioned earlier, Mega Bank has to appoint a new CEO before the completion of three months after the resignation of Mr. Shah.
Similarly, after resigning from Mega Bank Mr. Anil Keshari Shah has joined the team of Nabil Bank as the Deputy CEO. He was actually supposed to be appointed as the CEO, but because of the directive mentioned above he has to complete a cooling period of six months before taking that position. However, after the resignation of Mr. Sasin Joshi (Ex. CEO of Nabil Bank) Mr. Shah is functioning as the acting CEO of the bank.
But if we put together both the directives, Nabil Bank has to fill in the position of CEO within 3 months but Mr. Shah can’t take a CEO’s position for 6 months. Unless they can find a loop, Mr. Shah can’t be appointed as the CEO of Nabil Bank, without appointing someone else till the cooling period.
Similarly, the other bank in our list without a CEO is Century Bank, which is in a more critical situation than others. The bank had appointed Mr. Jeevan Bhattarai as the acting CEO of the bank on Ashwin 01, 2074, which counts to a tenure of 5 months and 12 days today. This clearly violates the directive of NRB, which requires the bank to hire CEO before 3 months after the resignation of the last one.
The last on the list, Machhapuchchhre Bank is still in between having or not-having a CEO. According to the rumors, Mr. Niraj Kumar Shrestha, has resigned from his position as the CEO and the bank hasn’t appointed a new one. However, upon contacting the officials at Machhapuchchhre bank, they mentioned that his resignation isn’t final yet and he is currently on a leave. As of now the bank is being managed by Mr. Arjun Thapa, Deputy General Manager.
Given the current market situation, four large banks with no CEO is not a good sign. There might be various internal and external reasons for this, but none is good enough to justify leaving such big organization without leadership. Even if the market for eligible CEOs is thin outside, banks must consider looking for one amongst themselves and creating a new era of qualified CEOs who have grown inside the same organization, who knows its culture, its environment and its people. In such critical times, what can these banks do? Please leave your suggestions below.
Similarly, after resigning from Mega Bank Mr. Anil Keshari Shah has joined the team of Nabil Bank as the Deputy CEO. He was actually supposed to be appointed as the CEO, but because of the directive mentioned above he has to complete a cooling period of six months before taking that position. However, after the resignation of Mr. Sasin Joshi (Ex. CEO of Nabil Bank) Mr. Shah is functioning as the acting CEO of the bank.
But if we put together both the directives, Nabil Bank has to fill in the position of CEO within 3 months but Mr. Shah can’t take a CEO’s position for 6 months. Unless they can find a loop, Mr. Shah can’t be appointed as the CEO of Nabil Bank, without appointing someone else till the cooling period.
Similarly, the other bank in our list without a CEO is Century Bank, which is in a more critical situation than others. The bank had appointed Mr. Jeevan Bhattarai as the acting CEO of the bank on Ashwin 01, 2074, which counts to a tenure of 5 months and 12 days today. This clearly violates the directive of NRB, which requires the bank to hire CEO before 3 months after the resignation of the last one.
The last on the list, Machhapuchchhre Bank is still in between having or not-having a CEO. According to the rumors, Mr. Niraj Kumar Shrestha, has resigned from his position as the CEO and the bank hasn’t appointed a new one. However, upon contacting the officials at Machhapuchchhre bank, they mentioned that his resignation isn’t final yet and he is currently on a leave. As of now the bank is being managed by Mr. Arjun Thapa, Deputy General Manager.
Given the current market situation, four large banks with no CEO is not a good sign. There might be various internal and external reasons for this, but none is good enough to justify leaving such big organization without leadership. Even if the market for eligible CEOs is thin outside, banks must consider looking for one amongst themselves and creating a new era of qualified CEOs who have grown inside the same organization, who knows its culture, its environment and its people. In such critical times, what can these banks do? Please leave your suggestions below.
