NRB Governor Again - Bijaya Nath Bhattarai

"I am back home," said reinstated Governor Bijaya Nath Bhattarai today, promising to continue the fight against the financial mafia. "The support of my colleagues was my moral strength," he said addressing Nepal Rastra Bank (NRB) employees, were waiting for him all day.

Right after taking charge, Bhattarai said monitoring and supervision capacity of the central bank have to be enhanced. "Mushrooming banks and financial institutions have not contributed to the real sector's growth," he said adding that the increase in number had encouraged unhealthy competition. He was also against urban-centric banks and financial institutions. "There are more opportunities in semi-rural areas," he said.

Bhattarai opined that the country needs a few but strong banks and financial institutions rather than many weak ones. "Merger and Acquisition (M&A) should be encouraged to make stronger banks," he added. Asked if the Monetary Policy announced by his predecessor could be changed, he said it is the central bank's policy, and it would not make any difference who brings it. "It is a team that works on it and change of governor will not have any impact on it," said Bhattarai.

"Whatever good work that my predecessor Kshetry did, I will continue," he assured. "Others like the liquidation of Nepal Development Bank (NDB) I need to look into. NDB should have improved when NRB declared it a problematic bank, but it did not improve and today it has been sent to the court for liquidation," Bhattarai added.

The continuation of financial sector reform programme, good governance, accountability, transparency, lowering the NPA of Rastriya Banijya Bank and Nepal Bank Ltd, shareholder access to information are some of challenges for NRB, according to him. On the occasion, the then NRB executive director Surendra Bahadur Pradhan said that it took them two years and 15 days to get justice. "The financial Mafiosi and conspiracy against the central bank and its honest employee has been defeated," he said advising NRB employees to keep their morale high.

An emotional Pradhan also thanked the media and NRB employees for supporting him and Bhattarai throughtout the cooked up case against them. The CIAA had filed a case at the Special Court against Bhattarai and Pradhan on June 29, 2007. The Special Court sent the case to the Supreme Court after it could not decide unanimously. The Supreme Court on July 15 acquitted them.