NDB’s Pun wants to sell his shares

Patron of ill-fated Nepal Development Bank (NDB) Uttam Pun, who had a powerful influence on the bank, has resigned from his post after the 'prospective investors declined to invest' until he remains in the bank.

The Annual General Meeting of the bank held about three years ago had elected Pun as patron of the bank, a post created for him. The patron cannot enjoy voting rights but Pun is considered to have great influence in the bank's decision making as his group still has a majority stake in the bank.

Bank sources said that he is also ready to sell all his shares in the bank. "I am ready to pull out from the bank completely if the bank comes into operation at the hands of others," NDB chairman Amar Gurung quoted him as saying at a meeting with directors and employees on Friday.

Given Nepal Rastra Bank (NRB)'s decision to request the Appellate Court for permission of liquidation of the bank after the central bank was not convinced with the NDB's clarification, Pun took the above move.

Given the suspension of all transactions of NDB shares by the Security Board of Nepal, his shares is unlikely to be sold anytime soon. Before selling promoters' share, the promoter should take NRB's approval.

The earlier management led by Sunanda Shrestha had left the bank citing 'non-cooperation' from Pun and his aides in following NRB directions. Pun has the shares worth Rs. 1.6 million in the bank.

Shrestha, who was a former CEO of the bank, said that two big parties are keen to invest in the bank. "They want no presence of Pun at all," he said. Pun has been facing allegations of being key figure behind the fall of the bank.

However, NRB suspects his move was guided by influencing the court decision given central bank's decision to go ahead with the liquidation plan.

NRB executive director Gopal Kafle said that neither Pun's resignation as patron nor his intention to sell his shares will help to revive bank's health. "The bank is badly in need sufficient capital injection," he added.

Before taking the final decision to ask the court to allow for liquidation of the bank, a number of groups had approached NRB with various proposals which the NRB had rejected.

Shrestha-led group had also approached asking NRB to take control of the bank, remove Pun from the bank and recover the non-performing loans before they invest capital in the bank, according to an NRB official.

Earlier, the promoters including both Shrestha and Pun led groups didn't invest in right shares. Only Shrestha and Pun had invested a little from the respective groups which resulted in poor subscriptions of right shares.
Money back demanded

KATHMANDU: Ordinary depositors and shareholders of Nepal Development Bank (NDB) have asked Nepal Rastra Bank (NRB) to give back their deposits and the money invested they invested in rights shares recently before the liquidation process of the bank begins.

"First off all we want continuation of the bank's operation," said Kirti Madan Joshi, president of NDB Victims' Association (ad-hoc committee) in a press meet on Saturday.

"If there is no alternative other than liquidation, we must be given our deposits at the earliest."

Given that the liquidation process may take a long period, they asked the central bank to clarify when they would get back their money.

They also raised suspicion over NRB's motive saying that it could be plot to let the bank's promoters clear from this mess as the central bank decided to liquidate the bank as emergency measure.

They also complained their attempts to meet Prime Minister Madhav Kumar Nepal, Nepali Congress president Girija Prasad Koirala and Maoist chairman Puspa Kamal Dahal failed as all of them didn't respond positively.
Source: EKantipur