NRB to take action against the NDB chief

The Nepal Rastra Bank (NRB) had proceeded for the legal action against the Chairman and the board members of the Nepal Development Bank.

Addressing the Thursday press meet, the NRB Governor Mr. Dipendra Bahadur Kshetry said that Amar Gurung, Chairman of the NDB and other board members will be charged against their act of bringing the bank to this state. The NDB chairman and other board members were found guilty and involved in the co-operative business. As per the NRB regulation, single person cannot be engaged in different institutions of similar nature.

The NDB had also rejected to accept the NRB paper of questioning on the current financial situation of the bank and the appropriate reason of not liquidating the bank. Mr. Governor further denied the NRB decision of approving the NDB to issue right share, despite its degrading situation, but the Deputy Governor Mr. Krishna Bahadur Manandhar said that the decision was passed by the then NRB working committee in the view that the NDB would improve after the issuance of the right share.

The Governor however accepted that the NRB failed in the case of NDB to protect and maintain its financial health. As for the deposits of the general depositors, the court will appoint the liquidator and decide the matter later.

However the general depositors will be getting their deposits back as per the latest report, the total deposits at the NDB is around 80 million and thanks to the NRB regulation to maintain the adequate balance in the account of NRB. The NDB is able to refund the deposits of the depositors, with the Accounts, NDB is maintaining with the NRB and other financial institutions, said the NRB.
Source:
Jambnews Service