NRB determined to liquidate NDB

Nepal Rastra Bank (NRB) has stated that it will not reconsider liquidating Nepal Development Bank (NDB) even if any party wants to inject money to revive the sick bank.
The central bank made its stand clear in response to the claims of NDB's promoters that two big groups were willing to invest in the bank.
"It is too late even if any party wants to inject double the required capital in the bank," said Dipendra Bahadur Kshetry, NRB governor. "NRB has made the final decision regarding liquidation."
The central bank has also decided to ask the Appellate Court to consider allowing it to return the money of NDB's ordinary depositors before liquidation.
"NRB will also appeal to the court in writing to consider the plight of ordinary depositors," said Kshetry, during his meeting with a delegation of NDB victims on Sunday. "The lawyers defending the NRB move will also argue in favour of ordinary depositors' interest during the hearing on the issue."
According to NRB, there are ordinary deposits worth Rs. 190 million in NDB,.
The governor said that NRB would file a case with the Appellate Court within this week after necessary preparations.
Kshetry added that the central bank had no authority to return their deposits immediately without a court order. NRB
has frozen all movable and immovable properties of the
bank and Nepal Cooperative in which the same promoters are involved.
Ordinary depositors have been asking the central bank to make arrangements for withdrawal of their money before the final verdict of the court on the case given their problems to run their day-to-day lives due to lack of money.
The depositors complained that they are facing hardship in paying their rent and schools fees for their children and buying essentials.
The bank's shareholders had asked NRB to consider running the bank under its direct control. The governor rejected the suggestion saying it was "impossible" at the moment.
The governor added that NRB was considering the strategic paper of Cottage and Small Industries Development Bank (CSI) which wants to invest Rs. 540 million to revive the bank.
"We may decide on CSI's
proposal too within this week,"
he said. The central bank has
also declared CSI a crisis-ridden bank.

Source: EKantipur