Rastriya Banijya Bank Limited (RBBL) was established on January 23, 1966 under the RBBL act 2021 with full ownership of the Government of Nepal. Its head office is located at Singhadurbar Plaza, Kathmandu. The bank boasts a large network of 160 branches, 17 counters, 28 branchless banking and 72 ATMs. According to the 4th Quarter report of FY 2071-72, has the highest deposit collection among all the commercial banks of Rs.124.22 billion and also has the highest net profit among all banks of Rs.4.5 billion. The bank has an authorized capital of Rs.10 billion with an issued capital of Rs.9 billion and paid-up capital of Rs.8.59 billion.
The Government of Nepal is selling part of its shares of RBBL worth Rs.2.57 billion to the general public. This is not an IPO. Neither the capital of RBBL is going to increase nor is any premium generated from the issue (if shares are issued at a premium which seems to be the likely case), going to add to the bank’s reserves. All the money collected from the issue will go to the Government of Nepal.
Mr. Krishna Prasad Sharma, Chief Executive Officer Mr. Sharma holds a Master’s Degree in Business Administration, M.A. in Sociology and B.Sc. in Agriculture. He started his banking career in 2040 B,S. as an Agricultural Officer. He has worked in Rastriya Banijya Bank (RBB) for 3 decades in various capacities including Deputy General Manager for more than 4 and half years, department chief at various important departments including Human Resource, Branch Operation, Loan Recovery and Priority Sector Credit. He is the first ever CEO appointed from inside the Bank and selected through open competition. Mr. Sharma is also the Chairman at NLG insurance and Board Member at National Life Insurance Company Ltd. He was a member of BOD at Nepal Investment Bank Ltd., Credit Information Centre Ltd., Far Western Regional Rural Development Bank Ltd., Eastern Regional Rural Development Bank Ltd., Biratnagar, Mid Western Rural Development Bank Ltd., Nepalgunj and Credit Guarantee and Deposit Insurance Corporation Ltd.
Government nominates all members of the board including the chairman. The current Board members of RBBL are as follows:
The bank is completely owned by the Government of Nepal and the management has been known to be complacent in the past. However, the bank’s fundamentals have been slowly improving over the past few years. The bank’s reserves that was negative by Rs6.2 billion in FY 2070-71 has been reduced by over 70% in just one year and is currently negative by only Rs.1.69 billion. The bank plans to make its reserves positive by the second quarter of FY 2072-73. 
The bank’s Capital to RWA ratio which had been hovering below the NRB stipulated limit of 10% now stands at 10.34% as of Q4 2072 which is a very exciting news. The bank’s Capital to RWA ratio was 4.62% in FY 2070/71 and 2.94% in FY 2069/70. The bank has also managed to bring down its Non-performing Loans to just 3.38% from last fiscal year’s 6.38%. 
The bank’s CD ratio as of Q4 2072 stands at 61.05%. This is well below the NRB stipulated limit of 80% which shows that the bank has plenty of room to extend more credit. 
According to the 4 th Quarter report of 2072, the bank’s operating expenses have decreased by 30.41% and the bank’s operating profit has increased by 55.79%. The net profit of the bank has increased by an astounding 145.09%. But this increase in profit has largely been fueled by the sale of assets (promoter shares of Nepal Investment Bank Ltd.) rather than an actual increase in the bank’s core business or efficiency. The bank’s profit through normal operation is expected to be around Rs1.5 billion to Rs.2 billion each year for next five fiscal year. 
For investors, the bank’s dividend prospects do not appear very attractive. The bank is unlikely to distribute dividends in the immediate future. However, the bank's CEO forecasts a dividend of 20% for FY 2017 and 50% for FY 2020 AD.
The bank’s major challenge is managing its large pool of Human Resource. The bank is overstaffed and reducing its workforce will prove to be a difficult undertaking. Even if the bank manages to let go of its employees, the financial burden on the bank will not decrease for years to come due to the severance payments that will need to be made to them. The bank will also face challenges in adapting to changes in management practices and new technology due to its obsolete manpower. This will excessively hinder the bank’s ability to compete with other more efficient private banks.
