Gurkha to return deposits from today

Thu, Jun 2, 2011 12:00 AM on Others,
KATHMANDU, JUN 02 -
After a month-long closure, crisis-ridden Gurkha Development Bank will start to return deposits from Thursday.

The newly formed board announced on Wednesday that the bank will remain operational from 10 am to 1 pm for banking transactions. Gurkha has also fixed the amount to be withdrawn. Depositors can withdraw Rs 5000 to Rs 100,000 on the basis of their existing deposits amount in the bank. Those having outstanding deposits of up to Rs 50,000 can withdraw Rs 5000 and those having more than Rs 5 million in outstanding deposits will get Rs 100,000. One can withdraw deposits for the second time only a week after the first withdrawal, the bank said. The bank has suspended its any branch banking, ATM and account closure services for the time being. Gurkha said as individual deposits of up to Rs 200,000 have been insured, depositors should worry.

Newly elected Gurkha Chairman Prem Bahadur Begha said at a press meet here that they are determined to revive the bank and have also initiated reform process. As a part of the reform process, Gurkha has appointed Tulasi Prasad Upetri as advisor and Krishna Kumar Bhattarai as chief executive officer. The central bank, however, is yet to approve their appointment. “We are positive to their appointment,” said a senior NRB official.

Gurkha said three more top-level officers could be appointed as per the agreement signed between the new management team and the bank. It said the reform process will complete in three phases. “In the first phase, we are currently recovering loans and blacklisting defaulters,” said the bank in a press release. “We can get rid of the ban on short-term business transactions by NRB soon.” In the second phase, an environment will be created where the bank can carry out all sorts of transactions that it used to conduct before the crisis-ridden declaration. “After that, the bank’s capital structure will be strengthened through rights shares issuance and strategic partnership,” reads the press release.

The central bank had declared Gurkha crisis-ridden on March 25 after its financial health worsened because of financial misappropriations by its directors. The central has banned Gurkha from collecting deposits and providing loans, among others, while giving it six-month timeframe to improve its financial situation.

Source: Kantipur