Exec: Restructure on table

THE National Development Bank will undergo restructure to generate more returns, says managing director Moses Liu.
Liu said it was part of State Enterprises Minister Sasindran Muthuvel’s initiative for State-owned enterprises.
Liu said during a dedication service for bank staff in Port Moresby on Tuesday “we are looking at either fully commercialising or partly commercialising operation”.
“We cannot continue to rely on the Government,” he said. “We should be operating as a private business.”
Liu gave the example of Bank South Pacific which did very well after being privatised.
“They are doing very well (now), (compared to) when the PNG Banking Corporation was there,” he said.
Liu said details of the restructure would be disclosed at the end of the first quarter.
He said last year, the bank loaned out K81 million to customers.
“It is the loan portfolio that we have got and the level of recapitalisation that comes from the Government is around the same, between say K20 and K30 million, on average. Therefore we sort of lend around the same figure.
“The NDB plans to expand its subsidiary, the People’s Micro Bank, throughout the country. The six branches are in Tari, Kundiawa, Lae, Mendi, Goroka and Wabag.
“We want to expand the NDB throughout the country.”