Since CIT implemented its five year strategic plan, there have been visible changes in the institution. The facts and statistics being disseminated by CIT signal the same. The five year strategic plan we have devised has tried to establish three pillars of our professionalism—the first is saving, second investment and third capital market service. There are positive indicators on these three pillars. It is two years since strategic work plan was implemented. Looking back, while there have been some positive changes, there are also challenges ahead. Our main responsibility today is to ensure achievement and to overcome challenges in the days to come.
There are possibilities of attracting more savings if we can expand our saving schemes. If we can expand the number of branch offices, more people will participate in CIT’s schemes. We have taken a leap in saving collection. In fiscal year 2073/74 alone, we have collected savings worth more than 17 billion rupees. The total amount of saving money has reached one trillion (kharab) rupees. The main challenge is investment management of this saving. It is necessary to enhance internal capacity of our human resources. This is another challenge. Around two third of our saving is deposited in banks as fixed deposit. This is our compulsion. We should have been able to contribute to national economy and job creation with this fund, or at least provided a vision for this, but we have not been able to do so.
We need to work to explore our internal potential, investment opportunities and potential areas of investment. Considering this need, we had a study conducted on diversifying our investment. This study has identified the possible areas of investment. We need to review our investment policy in line with finding of this study. We need to amend the existing acts and laws so as to take a leap in investment management. If we can do this, it will provide opportunities to invest in new areas. CIT needs to invest in public private partnership projects, tourism development projects, roads, railways, rope ways etc. Thus an amendment is required for it in credit investment policy.
Our third pillar—capital service—needs to be enhanced as well. The CIT Act has given it due importance. CIT has been working as a manager for opening and selling shares, issuing IPO, and working as a registrar. The existing CIT Act has clearly defined how to facilitate sell and purchase of stock in security market, how to make capital market stable and permanent, and how to make capital market mobile and dynamic. We need competent human resources to do this job. We have sent a proposal to NEPSE to work as a stock dealer of shares. Once this proposal is approved, this laxity in capital market is expected to come to an end.
The CIT needs to play a vital role in providing incentives and encouragement to new companies, and listing them in stock exchange. The strategic plan has also envisioned this. The number of clients has increased considerably. There are 48,000 participating offices/organizations. Those contributing to savings have reached 608,000 clients. This is the proof of expanding network as a savers in various schemes of CIT. Thus we can say this office has assumed great importance in itself. This is the result of our credibility in and among the clients. This is because the CIT provides security and protection to the savings and its clients. I am confident that the number of people and firms participating in CIT will increase even more in the days to come. CIT is perhaps the only institution with the largest number of clients and participants. This shows the importance of CIT as a trust worthy trustee of Nepal.
We believe the trust reposed on CIT by our clients and firms is our main asset. We are in the process of expanding our branch offices outside of Kathmandu Valley, where its central office is located. But there is a challenge to further enhance our information technology system and thus address the aspirations of our clients.
Executive Director/Chief Executive Officer
Citizen Investment Trust
|ESG Retirement Fund (Deposit)||7.5%|
|ESG Retirement Fund (80% Loan)||9%|
|Insurance Fund (Civil Service)||6.5%|
|Insurance Fund (Teachers)||6.5%|
|Insurance Fund (NARC)||6%|
|Insurance Fund (Nepalese Army)||4.5%|
|Insurance Fund (Armed Police Force)||4%|
|Insurance Fund (Nepal Police)||4%|
|Citizen Unit Scheme (Individual)||8%|
|Citizen Unit Scheme (Corporate)||5.5%|
|Investors A/C Scheme||As per income|
|Gratuity Fund Scheme||As per income|