NRB looks into misdeeds of NB Bank promoter Adhikari

KATHMANDU, Nov 8: 

Nepal Rastra Bank (NRB) has launched investigation into malpractice of Bishnu Raj Adhikari, a promoter of Nepal Bangladesh Bank, who was found working in the capacity of the bank´s board director despite being blacklisted by the Credit Information Bureau (CIB).

“We have already asked the concerned department to conduct a thorough study on misdeeds conducted by Adhikari,” a high-ranking NRB official told Republica on condition of anonymity. 

He also informed: “Initial reports suggest that Adhikari is guilty. But we won´t be able to take any action against him until the investigation is complete.”

The central bank´s move comes a day after Republica exposed how Adhikari violated norms set by the regulator by continuing to work as a director despite being blacklisted on July 29 for defaulting on an outstanding loan amount of around Rs 70 million acquired in the name of Synergy Property Developer from Nabil Bank. 

Although his name no longer appears in the list - because he has since cleared the debt - the Bank and Financial Institution Act does not allow any blacklisted person to assume the post of board director of any bank or financial institution for at least three years from the day the person´s name is withdrawn from the list.

Documents obtained by Republica show that Adhikari was attending the bank´s board meetings as a director and taking crucial decisions till September 6, despite being blacklisted on July 29.

In one instance, Adhikari had signed the minute of the 209th board meeting of the bank held on August 27 to welcome newly appointed board director Mukunda Nath Dhungel and introduce Bangladeshi board director Mohammad Lutfar Raham and newly appointed chairman Shambhu Sharan Prasad Kayastha.

Adhikari had also signed the minute of 212th board meeting of the bank held on September 6 during which Kayastha was relieved from the duty for giving an interview to a business tabloid, ´Ajako Arthatantra´, which the board claimed damaged the bank´s reputation. 

Adhikari had stepped down from his post later in September after the central bank fined him Rs 500,000 and banned him from assuming the post of director in any bank or financial institution for at least five years after finding him guilty of causing financial losses to the bank while auctioning off a land pledged as collateral by a loan defaulter.

Source: Republica