Kathmandu. Three commercial banks have come under the action of Nepal Rastra Bank. Central Bank has taken action against Himalayan, Kumari and Prime Commercial Bank. These three banks were penalized after violating the instructions issued by the National Bank. Himalayan, Kumari and Prime Bank have been prosecuted by the Rashtra Bank for not meeting the loan-to-deposit ratio in the fourth quarter of the last financial year 2079/80 and not making adequate provisions for loan losses.

The Central Bank fined Kumari Bank and Himalayan Bank Rs 59 Lakh 1 Crore 139 Lakh respectively for not maintaining the loan deposit ratio. On the other hand, the Chief Executive Officer of Prime Bank has also been made aware that he did not maintain adequate loan loss provisions and calculated the risk-weighted assets less than the actual amount, according to the Rastra Bank.

Bad loans of commercial banks are now 2.70 percent. The fourth quarter financial report of the last financial year 2079/80 published by commercial banks in operation has shown this. By the end of June last year, the bad loan ratio of banks has decreased. Bad loans were projected to reach 5 percent by the end of June. However, during that period, such loans were seen to be under control.