Banks to adopt austerity measures as COVID-19 hits businesses

banks-to-adopt-austerity-measures-as-covid-19-hits-businesses

, JUNE 28

With their financial position being hit and expected to be hit even harder in the coming months due to the pandemic, (BFIs) are falling back on including not renewing the agreement of those working on contract basis, reducing allowances of staffs and bringing down the administrative costs.

While a few banks have already stopped renewing agreements of those working on contract basis for fixed terms, others are looking into possible austerity measures in a win-win situation for both banks and the workers.

“Downsizing staff and reducing the salary is the last option and we are not looking into this at present. However, bankers are studying effective austerity measures that could be adopted which will benefit both banks and staffs,” said Bhuwan Dahal, chief executive officer of Sanima Bank and also the president of Bankers’ Association () — the umbrella organisation representing 27 commercial banks in .

NBA has formed a dedicated committee under the coordination of Anukool Bhatnagar, managing director of Nepal SBI Bank, to study possible austerity measures that banks should adopt to cope with the crisis situation. “The committee is expected to submit its report by mid-July and banks will adopt measures recommended by the committee,” informed Dahal.

Dahal informed that ‘work from home’ trend has helped banks reduce operation cost to some extent, especially transportation and fuel-related costs and banks are also explorin


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