Kist CEO quits over spouse bank fraud case

ShareSansar, June 9:

The CEO and board director of Kist Bank, Kamal Gyawali, tendered his resignation following the arrest of his wife by the Central Investigation Bureau (CIB) of Nepal Police on a bank fraud charge. Kist Bank board meeting accepted Gyawali’s resignation on Saturday.

Gyawali has stated in his resignation letter that he took the decision to protect the bank’s reputation and cooperate with the police investigation.

After Gyawali’s exit, Bal Narsimha Gharti, who was appointed as the bank’s deputy CEO by Saturday’s board meeting, will take charge as the bank’s acting CEO. Gharti has held different positions at different banks in his 16 years long career in the banking sector.

The CIB had arrested Gyawali’s wife and the proprietor of Jamko Publication Kishore Dhakal after investigation revealed that the duo secured a loan from Siddhartha Development Bank illegally.

It was found during the investigation that Jamko Publication had secured a business loan of Rs 130 million from Siddhartha Development Bank by overvaluing a plot of land that was worth Rs 60 million.

The money was moved later to Gyawali's wife's account in Prime Commercial Bank. The loan amount and interest that currently stands at around Rs 30 million have not been paid so far.

Sources said the central bank and the board had been putting pressure on Gyawali to resign. Gyawali had been a part of Kist Bank since its establishment in 2003.