9 Commercial banks of Nepal under Action of Nepal Rastra Bank

Apr Wed 2023 02:27:32

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9 Commercial banks of Nepal under Action of Nepal Rastra Bank

Kathmandu. Nine commercial banks have come under the supervision department's action. In the third quarter of the current financial year, a total of 9 commercial banks have been penalized for working against the rules of the National Bank.

Out of which 6 commercial banks have been fined for not maintaining the credit-deposit ratio (CD ratio). Nabil Bank, Global IME Bank, then Century Bank (currently Prabhu Bank), Nepal Bank, Nabil Bank, Krishi Bikas Bank and Himalayan Bank were penalized for not maintaining CD ratio.

Rastra Bank gave Nabil Bank Rs 646,450, Global IME Bank Rs 442,460, Prabhu Bank Rs 284, Himalayan Bank Rs 7172, Krishi Bikas Bank Rs 6958 and Nepal Bank Rs 18 lakh. 59 thousand rupees fine has been paid.

The Central Bank has also fined the National Commercial Bank Rs. The then NCC Bank (currently Kumari Bank) provided more than one subsidized loan to the same group, did not provide adequate provision for losses in some loans and changed the premium rate of the loan, the National Bank alerted the then Chief Executive Officer.

Similarly, the then Chief Executive Officer of NCC Amritcharan Shrestha was fined Rs 5 lakh after approving the loan beyond his authority. Also, the then Chief Executive Officer was alerted to the fact that Kumari Bank at that time had provided subsidized loans without justification and provided interest rates higher than those published on fixed deposits.