Banks and financial institutions plan for staff cuts to reduce costs when economic activity stops due to lock-down (covid-19).

Currently, contract employees are most affected in the banking sector. Banks and financial institutions are now cutting down on temporary and outsourced employees.

At present, 30 percent of the 100,000 employees working in banks and financial institutions are on temporary or outsourcing basis. That 30 percent is 30,000. At present, the employment of those 30,000 contract and outsourced employees is in a trap.

According to the NRB, there are about 70,000 employees in 162 banks and financial institutions in Nepal. Bank contract employees are also kept in these various branches. That number is three and a half thousand. At the same time, other outsourcing employees are also hired. A bank also has a minimum of 3 or 4 outsourced workers.

There are only two months left to start the fiscal year 2077/78. Banks and financial institutions that have been plagued by the Corona virus are less likely to renew their contracts for the 30,000 employees.