Government-owned Rastriya Banijya Bank says it will reduce its bad debts or non-performing assets to 28 percent by July 2007 from the current level of about 50 percent. Experts say the RBB will have to continue with its modernising bid in order to achieve that target. ?The bank would achieve its goal by adopting a modern banking approach,? said deputy governor of Nepal Rastra Bank, Bir Bikram Rayamajhi. RBB officials claim that the bank has recovered Rs 7.4 billion in cash over the past three years and completed restructuring of Rs 2.56 billion worth of loans. Officials also said the 41-year-old bank has been trying to automate 47 of its branches to improve performance and loan recovery. Under the financial sector reform programs of international financial agencies, the central bank has allowed RBB and the Nepal Bank Limited to be managed by foreign teams.