Super Laghubitta Bittiya Sanstha Ltd Declared as Problematic Financial Institution By Nepal Rastra Bank

Super Laghubitta Bittiya Sanstha Ltd, Tulsipur, Dang declared a Troubled OR problematic financial institution by Supervisory Nepal Rastra Bank (NRB).

According to the general on-site inspection and the special inspection carried out based on the financial statements of the end of Ashoj 2078, Super Laghubitta Bittiya Sanstha Ltd.'s chairman and board of directors were directly involved in loan misappropriation by creating fictitious borrowers for personal gain at the expense of the company.

The microfinance company was required to abide by clauses (a), (b), and (c) of Regulation 3 of 2074 governing the immediate corrective action of banks and financial institutions on date 2078/12/02 since the capital adequacy ratio was negative by 10.31%.

If there is any justification for not declaring the company problematic under Section 86B of the Nepal Rastra Bank Act, 2058, the company has to appeal for the same.

However, the company's justification was found to be insufficient; as a result, the company has been designated as a troubled financial institution under Section 86B of the Nepal Rastra Bank Act, 2058.