Citizen Bank International enters 12th year of operation with a bang; posted net profit of Rs.1.17 arba on Q3 report with 15% CAR

Citizen Bank International celebrated its 11 years of successful operation among a program today at its head office, Narayanhiti Path, Kathmandu. The bank also presented awards for directors and staffs who have dedicated themselves to the bank for a tenure of over 10 years. The program also highlighted the Corporate Social Responsibility (CSR) deeds the bank had done during this fiscal. Providing their assistance in diverse areas, the bank has donated a total of around Rs. 90 lakh. During this tenure the bank has established its network of 68 branches and 68 ATM outlets all over the country. The bank is currently serving over 3 lakh 35 thousand.

According to the 3^rd quarter report of 2074/75 published by bank, it has collected total deposits of Rs 60 arba 25 crore and disbursed loans worth Rs. 55 arba 82 crore. Similarly it has reported a net profit of Rs. 1 arba 98 lakh, which compared to last year is higher by 14.39%.

At the closing of the program one of the shareholder presents suggested bank to merge with other will institution with good earning so that Citizens Bank on its next report will be able to generate Rs 2 arba net profit for its Rs 8.08 arba paid-up capital shareholders. Similarly, the shareholder also suggested other ways that could probably uplift Citizens Bank to top 3 or 4.

As a response to this Mr Rajan Singh Bhandari, CEO of the bank said that they are not willing to take any aggressive measures. He said, “Bistarai hidxau, tara daro paila tekxau (Translation: We’ll walk slowly, but each step we take will be strong so that at times of crisis we can maintain our status). Merger and acquisition was the step taken by most Financial Institutions when the NRB increased the minimum paid-up capital to Rs. 8 arba. This was done in order to make BFIs more fundamentally strong and to consolidate the market. We also did few mergers with small banks, however our aim wasn’t to find an earning organization which will boost our net profit. We merged with the ones that were in problem or who needed us. So now that we’ve met our requirement, we aren’t planning for any merger rather we are aiming to create strong fundamentals. As a commercial bank fully owned by Nepali, we are doing well and even under such liquidity crisis in market we are maintaining 15% Capital Adequacy ratio (CAR) and 78% CCD ratio. We are optimistic regarding our future and I think we’ll be able to reach Rs 2 arba Net profit on our own.”