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Everest Bank duping customers

By Our Reporter
As Nepal is suffering from lack of adequate investment in manufacturing and employment generation sector, Everest Bank Limited, a joint venture partner of Punjab National Bank of India is found to be duping customers charging them with high interest rates.
The general depositors are never paid attention and they are deprived of competitive interest provided by other banks. The Nepal Rastra Bank is maintaining a hush-hush on this matter. About one million customers of the bank are kept in oblivion as the motive is to accumulate profit sans service.
The bank claims of serving its shareholders handsomely. The total investment from a shareholder, amounting to Rs.13500 from the beginning till now, has multiplied more than 25 times and present value of these shares amounts to almost Rs. 3,45,800, despite non-performing asset is augmenting every day.
Managing director and chief executive officer of the Punjab National Bank, Sunil Mehta, in course of addressing the press on March 8 in Kathmandu crossed the limits and said, “The persons in authority in Nepal do not seem to be aware how to attract investment in North East India, the Government of India gives not only the tax advantage but even capital investment and transport subsidies. If you set up a plant in Sikkim, you will get – (i) 10 year income tax holiday, and (ii) Capital and transport subsidies.”
In Nepal, you get 5 years income tax holiday (compared to 10 years in Sikkim), if the promoter investment is not less than NRs.100 crores. He further said so bluntly adding that the present labour laws of Nepal bothers the potential investors. The industrial labourers are not just coolies, they are mostly machine operators, quality control staff as well as persons trained to do maintenance of machines. Interfering into the internal policy matter of Nepal, he said, “Presently, to employ Indians in Nepal, you have to get the approval of the Labour Ministry. This should be changed, so that the local authorities (such as CDOs) can issue work permit for limited periods to such Indian workers. The present Labour Law allows the unions to put their demands every two years. This is very bothersome. This should be increased to at least five years, or such period as the union and the management may agree.
MD Mehta was aided and abetted by CEO Someshwar Seth, Chairman BK Shrestha, Board of Directors’ Arun Man Sherchan, Bal Gopal Baidya, Sunil Gopal Shrestha and Nirmal Kumar Bista. Both the Indians, MD and CEO, declined to respond to the queries relating to customer care service, well-being of the depositors, hassle-free prompt service. The bank gradually becoming undependable, inconsistent and feeble.

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