NBB boardroom battle: Chairman ousted

KATHMANDU, OCT 20 - 

In yet another boardroom battle at Nepal Bangladesh Bank (NBB ), Shambhu Sharan Kayastha has been abruptly removed from the post of chairman in less than two months of his appointment.

An NBB board meeting held on October 13 had decided to sack Kayastha and professional director Achyut Prasad Bajgain. The board appointed Jit Bahadur Shrestha as director from the promoters’ side and Madhav Upadhaya from the professional director quota.

Amid rumours that Shrestha has already been appointed to the chairman’s post, NBB CEO Gyanendra Dhungana said the bank hasn’t so far decided who would succeed Kayastha.

Shrestha is the brother of former director Laxmi Bahadur Shrestha, who had to leave the bank, promoted by the NB Group, after the central bank initiated action against him. Jit Bahadur Shrestha is former board member of Nepal Credit and Commerce Bank (NCC), from where he resigned last Friday.

Upadhyaya is the campus chief of Nepal Commerce Campus in Minbhawan, Kathamndu.

Kayastha was appointed as NBB chairman immediately after his term as NRB board member ended some two months ago. Kayastha’s appointment as NBB Chairman on the third week of August was seen as a ‘favour reciprocated’. Kayastha had reportedly favoured the NB Group when he was on the central bank’s board.

Kayastha now regrets his decision to join NBB. “This is the biggest mistake of my life,” said Kayastha. “I regret my decision.”

He, however, said he had no intention to challenge the decision in the court. “Although the court seeks a credible reason for the removal of a bank director, I am not going to fight for reinstatement,” he said.

According to Kayastha, during his tenure at NBB, he was never cooperated whenever he tried to check wrongdoings at bank. “I sought details from the management about loans that went to the promoters’ group,” said Kayastha. “But I was never provided with the details.”

A week after his appointment, Kayastha had opposed the appointment of two directors — Mukunda Dhungel and Bajgain. Kayastha terms their appointment ‘illegal’, saying the decision was taken by two of the four board directors.

“Blacklisted Bishnu Raj Adhikari and Indra Bahadur Thapa, who are considered to be loyal to the NB Group, took the decision in favour of their appointment, but I protested. Even the Bangladeshi director was not present then,” said Kayastha.

Sources at the Nepal Rastra Bank (NRB) also said Kayastha’s removal was a result of the confrontation between the two groups of Nepali directors at the NBB.

Kayastha then went on to give an interview to a newspaper, in which he said nobody would be spared, even the bank promoters, if they worked against the bank’s interest.

He believes these incidents were the major factors behind his removal. Kayastha was told repeatedly to resign, but he kept on rejecting. Then, a board meeting held on September 6 decided to remove Kayastha, which was held under the chairmanship of Mohammad Luftar Rahaman, in which Rahaman has not signed and the minute has not been registered. Another meeting held on October 13 again decided to remove, him but Kayastha said he was not informed about the decision formally.

NBB CEO Dhungana said the decision to remove Kayastha was taken a part of handing over the bank’s chairmanship to the Bangladeshi partner, given the Bangladeshi shareholder is in the process of taking over a majority stake in NBB.

“There has been an internal understanding that the Bangladeshi promoters would take the chairmanship of the bank before the bank’s annual general meeting slated for December,” said Dhungana.

Source: The Kathmandu Post