Gurkha withdrawal to begin by end of next week
Mon, May 16, 2011 12:00 AM on Others,
KATHMANDU, May 16:
Gurkha Development Bank will allow deposit withdrawal by the end of next week.
“The bank has appointed new consultant and CEO but is waiting for approval from the central bank to hand over the management,” said Karna Thapa, assistant general manager of the bank. “The new management will let the depositors withdraw their money,” he said, informing that the bank has appointed professional consultant Tulsi Prasad
Upreti and Krishna Kumar Bhattarai as CEO.
The bank was closed since last month after it was unable to meet the pressure of deposit withdrawal after it was declared problematic by Nepal Rastra Bank on March 25. “We have been performing other regular business like issuing cheques except for collecting and withdrawing deposits and giving out loans in our branches,” he informed.
The bank had opened its branches to allow deposit withdrawal by rationing the amount of deposit that can be withdrawn from an account based on the balance held by the depositors from April 25. “However, that system was difficult to implement due to pressures so that we stopped withdrawal till new management takes over,” he pointed out.
The bank had informed that it has started loan recovery and the promoters have also agreed to put Rs 330 million for Calls in Advance. “The bank has been able to recover Rs 120 million in this month alone, thus we are hopeful that we will soon be able to meet the withdrawal demand,” he added.
The national level class ‘B’ financial institution operates through 21 branches across Nepal.
According to the latest data, the bank has total deposit of Rs 3.74 billion and loans worth Rs 4.15 billion. By the time the bank was declared problematic its non performing asset stood at 17 per cent.
The Special General Assembly of the bank had elected a six-member board of directors led by Prem Bahadur Begha on April 11, as per the instructions of the central bank.
The bank’s financial irregularities came in to light after one of the bank’s borrowers accused its former chairman D B Bomjan and other officials of embezzling his funds in January. On further probe from the central bank, the bank was found to be involved in few more shady lending. The poor governance had deteriorated its financial health compelling the central bank to take stringent measures.
Some more development banks and finance companies are also under radar central bank’s radar for their shady deals and poor corporate governance that has been a phenomenon in the financial institutions lately.
Source: THT
Gurkha Development Bank will allow deposit withdrawal by the end of next week.
“The bank has appointed new consultant and CEO but is waiting for approval from the central bank to hand over the management,” said Karna Thapa, assistant general manager of the bank. “The new management will let the depositors withdraw their money,” he said, informing that the bank has appointed professional consultant Tulsi Prasad
Upreti and Krishna Kumar Bhattarai as CEO.
The bank was closed since last month after it was unable to meet the pressure of deposit withdrawal after it was declared problematic by Nepal Rastra Bank on March 25. “We have been performing other regular business like issuing cheques except for collecting and withdrawing deposits and giving out loans in our branches,” he informed.
The bank had opened its branches to allow deposit withdrawal by rationing the amount of deposit that can be withdrawn from an account based on the balance held by the depositors from April 25. “However, that system was difficult to implement due to pressures so that we stopped withdrawal till new management takes over,” he pointed out.
The bank had informed that it has started loan recovery and the promoters have also agreed to put Rs 330 million for Calls in Advance. “The bank has been able to recover Rs 120 million in this month alone, thus we are hopeful that we will soon be able to meet the withdrawal demand,” he added.
The national level class ‘B’ financial institution operates through 21 branches across Nepal.
According to the latest data, the bank has total deposit of Rs 3.74 billion and loans worth Rs 4.15 billion. By the time the bank was declared problematic its non performing asset stood at 17 per cent.
The Special General Assembly of the bank had elected a six-member board of directors led by Prem Bahadur Begha on April 11, as per the instructions of the central bank.
The bank’s financial irregularities came in to light after one of the bank’s borrowers accused its former chairman D B Bomjan and other officials of embezzling his funds in January. On further probe from the central bank, the bank was found to be involved in few more shady lending. The poor governance had deteriorated its financial health compelling the central bank to take stringent measures.
Some more development banks and finance companies are also under radar central bank’s radar for their shady deals and poor corporate governance that has been a phenomenon in the financial institutions lately.
Source: THT
