Gurkha Dev Bank under NRB radar

KATHMANDU, FEB 27: 

Nepal Rastra Bank (NRB) has again started keeping a close tab on crisis-ridden Gurkha Development Bank asking it to prepare a plan to strengthen its financial health.

“We are keeping the bank under our scanner as its condition has yet to normalise,” said spokesperson of the central bank Bhaskar Mani Gyanwali.

Gurkha Development Bank has been asked to prepare a financial plan to come out of the dump in which it has been lying for the past one year. “There is no deadline for problematic institutions to get back to its feet but the process should not be unnecessarily extended,” he said.

The development bank had been trouble due to bad corporate governance and rivalry among its board of directors. NRB had asked it to change its entire board of directors but even after the change, it does not seem to have improved on its corporate governance.

Source: THT