Corporate Development Bank removed from crisis-ridden institutions list of NRB

Nepal Rastra Bank has removed Birgunj-based Corporate Development Bank Limited (CORBL) from the list of crisis-ridden institutions after it showed significant financial improvements. As per the Problem Bank Resolution Division of Nepal Rastra Bank, the bank, which had been declared problematic on Poush 4, 2071, was declared non-problematic by the decision of the meeting of Nepal Rastra Bank held on Magh 18, 2074 after the bank showed commitment to show melioration following the entrance of new investors. Also, according to Nepal Rastra Bank, the bank has maintained its paid-up capital and capital fund as required by the NRB Directives. However, the central bank has directed CORBL to present its plan of capital increment upto Magh 17, 2076 within 35 days. Likewise, NRB has directed CORBL to maintain its core capital ratio at 10% until the required paid-up capital is not maintained and after the maintenance of the required paid-up capital, the core capital ratio to be maintained as per the NRB requirements. The management of Corporate Development Bank is now required to give high priority to credit collection and deposit repayment, to reduce the bad debts to the prescribed limit, to make efforts for the bad debts collection and to form an investigation committee to further investigate about the bad debts that could not be collected and whether such debts had been floated with the involvement of ex-officials of the bank. The bank has been directed by NRB to present the progress details regarding the above issues within 2 months. CORBL has maintained the paid-up capital of Rs 20 crore as of Asoj, 2074. However, it has to increase its capital upto Rs 50 crore as per the NRB Directives.