Friday, July 15, 2011

Vibor does the right thing

After getting rescued by the central bank following liquidity crunch, Vibor Bikas Bank has done the right thing by merging with Bhajuratna Finance Savings, a category ´C´ financial institution. With a competent and knowledgeable CEO, Ajay Ghimire, I think Vibor will emerge strong after this merger. Before that happens it still has to bring its balance sheet in order though and decrease the proportion of risky loans/credit in its loan portfolio. More BFIs should aim for merger by following Vibor’s positive move. Else, without a consolidation of BFIs in the financial sector, a deeper financial crisis in inevitable.

Congratulations to Vibor and Bhajuratna!

No comments:

Post a Comment