Banking sector healthy: Governor

Governor of the Nepal Rastra Bank Deependra Bahadur Kshetry said the banking sector was not as weak as people perceive and appealed the public not to doubt over the banks´ financial health and capacity.

Contrary to what people tend to believe after the NRB took action against Nepal Development Bank (NDB), Kshetry said commercial banks are healthier and safer to deposit money.

Kshetry was in Pokhara after visiting NRB branches in Biratnagar, Janakpur, Birgunj, Nepalgunj and Dhangadhi. During the visit, he took stock of the financial positions of the banks and interacted with the bankers, investors and depositors.

During the interactions, depositors had mainly asked him if the central bank was landing its axe on other banks as well. But Governor Kshetry said that the financial health of all the banks and financial institutions were fine so far.

Kshetry also urged the promoters of banks and financial institutions to adhere to the financial discipline and comply with the directives of the central bank.

During his address, Kshetry also clarified the reasons behind taking actions against the NDB.

“NRB took actions against NDB because the bank management did not took reform initiatives we suggested and refused to adhere to the financial discipline,” he said, adding that other development banks, on the other hand, have been following NRB´s instructions.

Kshetry also stated that he had received anonymous threat calls after the central bank decided to take action against NDB. “The number of the caller does not appear on the mobile screen, which means, they belonged to ´distinguished persons´. I have not receives such calls these days though,” he added.

Khestry also stated that his tenure could end soon. Talking to myrepublica.com, he expressed doubt over continuing as governor in the new fiscal year, indicating that former Governor Bijaya Nath Bhattarai could be reinstated in the position.

Bhattarai was disposed from the post after Commission for Investigation of Abuse of Authority filed a case against him on the charge of financial anomalies. A final verdict on his case is scheduled for July 15. “I think this will be my last visit as the governor of NRB,” he told myrepublica.com.

Source: Republica