February 18: Nabil Bank’s Chief Executive Officer (CEO) Gyanendra Prasad Dhungana has said that banks will not be able to pay dividends next year unless the economy picks up pace.

CEO Dhungana said this while speaking at an interaction programme organized by the Female Economic Journalists Association (FEJA). He said that the problems that were never seen in the past are now seen in the economy and their impacts on banks are clearly evident.

He said that there has been a slump in purchase and sales as well as borrowing in the market and the overall economy is in crisis. As a result, the banks’ recovery has been badly hit, he said.

“If there is no improvement in the economy, banks and financial institutions will have to face more problems,” he warned.

He said that the practice of reducing the size of the budget rather than increasing the capital expenditure in the country is not correct. He said this will not help revitalize the economy. He said that the economy is in crisis as people are compelled to take loans for day-to-day expenses.

Sharmila Thakuri, president of the Female Economic Journalism Association, said that the interaction was held to support women's capacity development. The event was inaugurated by Acting Governor of Nepal Rastra Bank Dr Neelam Dhungana. Nabil Bank was the co-host of the interaction programme.