CIB nabs former chief of Baibhab Finance

KATHMANDU, March 6:

The Central Investigation Bureau (CIB) on Tuesday arrested Keshab Narsingh Rajbhandari, former managing director of Baibhab Finance Limited, on charges of extending Rs 60 million to a borrower by going against the norms set by the banking sector regulator.

Rajbhandari had extended a loan of Rs 60 million on security of 12 good-for-payment checks worth Rs 5 million each. The loan was issued on personal guarantee extended by Manoj Kumar Chaurasia, proprietor of Sari Enterprises. The good-for-payment checks were issued by Kuleshwor branch of H & B Development Bank.
As per the provision of Nepal Rastra Bank, banks and finance companies cannot extend loan against checks.

“Rajbhandari also did not take the consent of the finance company´s board prior to providing the loan and did not follow other due processes,” a CIB statement issued on Tuesday said. “Necessary investigation has already been initiated in this regard.”

Source: Republica