StanChart may be interested in acquisitions
Mon, May 9, 2011 12:00 AM on Others,
KATHMANDU, May 9:
Standard Chartered Bank (SCB) is interested in acquiring financial institutions in Nepal. However, it is waiting for the right time, according to a board director and ex-chief executive Sujit Mundul, who has seen Nepali financial sector’s evolution for the last eight years and he termed the period as eventful. He recently retired as the chief executive of the bank.
He, however, did not elaborate on the acquisition plan. “Other big South Asian players will also be coming to Nepal once the country stabilises,” he said. He said he is hopeful that some kind of synergy will emerge that will promote convergence of thoughts for economic development.
Nepal has every thing that a country needs to grow economically despite the current political transition, Mundul said, adding that the people will be investing in Nepal as there is a huge potential in the service sector and agriculture.
“The country is unstable and passing through a turbulent phase but Nepal has the right atmosphere and climate to develop itself as a medical tourism centre and educational tourism centre,” he said, adding that international educational institutions could come to Nepal and offer non-academic courses like they have been offering in Singapore and Bangkok.
Similarly, Nepal as an agrarian economy has a huge scope for floriculture as one can find many varieties in Nepal as geography and climate are favourable, he said. “Financial institutions, especially microfinance institutions can help promote such smallscale industries that can export apples of Jumla and oranges of various districts.
“Juice and pulp industries could be established at regional level and can be exported to India,” he suggested, adding that financial and non-financial institutions should chip in to help such industries that could propel growth.
“The central bank should be bold and take stringent action to clean up the mess in the financial sector to make it able to contribute to the economy,” he said, adding that the number of banks and financial institutions are still more in Nepal and there is no option to merger. “But transparency is the key to merger.”
Similarly, the chief executive’s pay and perks — that have been the most debated issue in the banking sector — should be linked to performance and should not be applied generally.
Though, he did not disagree on the central bank’s guideline for chief executive’s pay and perks, that he hoped that “it could reduce gap between the high level official’s pay and perks and low level’s but it should not be stiff.”
During his last eight years, he relived West Bengal’s Naxlite movement in Nepal. West Bengal has come a long way and Nepal will also come out of this phase,” Mundul, who hails from Kolkata, said.
Even after retirement, he will be active in Nepal operations as a board director and chairman of Risk Management Committee that makes him visit Nepal for 10 days a month, apart from his involvement in Kathmandu School of Management, writing, sketching, and his love for social service.
Source: THT
Standard Chartered Bank (SCB) is interested in acquiring financial institutions in Nepal. However, it is waiting for the right time, according to a board director and ex-chief executive Sujit Mundul, who has seen Nepali financial sector’s evolution for the last eight years and he termed the period as eventful. He recently retired as the chief executive of the bank.
He, however, did not elaborate on the acquisition plan. “Other big South Asian players will also be coming to Nepal once the country stabilises,” he said. He said he is hopeful that some kind of synergy will emerge that will promote convergence of thoughts for economic development.
Nepal has every thing that a country needs to grow economically despite the current political transition, Mundul said, adding that the people will be investing in Nepal as there is a huge potential in the service sector and agriculture.
“The country is unstable and passing through a turbulent phase but Nepal has the right atmosphere and climate to develop itself as a medical tourism centre and educational tourism centre,” he said, adding that international educational institutions could come to Nepal and offer non-academic courses like they have been offering in Singapore and Bangkok.
Similarly, Nepal as an agrarian economy has a huge scope for floriculture as one can find many varieties in Nepal as geography and climate are favourable, he said. “Financial institutions, especially microfinance institutions can help promote such smallscale industries that can export apples of Jumla and oranges of various districts.
“Juice and pulp industries could be established at regional level and can be exported to India,” he suggested, adding that financial and non-financial institutions should chip in to help such industries that could propel growth.
“The central bank should be bold and take stringent action to clean up the mess in the financial sector to make it able to contribute to the economy,” he said, adding that the number of banks and financial institutions are still more in Nepal and there is no option to merger. “But transparency is the key to merger.”
Similarly, the chief executive’s pay and perks — that have been the most debated issue in the banking sector — should be linked to performance and should not be applied generally.
Though, he did not disagree on the central bank’s guideline for chief executive’s pay and perks, that he hoped that “it could reduce gap between the high level official’s pay and perks and low level’s but it should not be stiff.”
During his last eight years, he relived West Bengal’s Naxlite movement in Nepal. West Bengal has come a long way and Nepal will also come out of this phase,” Mundul, who hails from Kolkata, said.
Even after retirement, he will be active in Nepal operations as a board director and chairman of Risk Management Committee that makes him visit Nepal for 10 days a month, apart from his involvement in Kathmandu School of Management, writing, sketching, and his love for social service.
Source: THT
