NRB bars Rising Development Bank from issuing bonus shares

CHITWAN, FEB 17:

The Nepal Rastra Bank (NRB) has barred the Rising Development Bank (RDB) from distributing bonus shares to its shareholders.

The bank had asked for permission for distribution of bonus shares after distribution of general shares.

But the NRB prohibited saying its deposit at the Himalayan Finance was unsafe, and said that it would only permit to distribute the bonus shares after its recovery.

The shareholders will not get the bonus shares after Rs. 30 million deposited by the then CEO of the bank, Bhanu Kandel, at the finance was at risk, said a RDB source.

CEO of Himalayan Finance and other responsible board members are at large and other three office bearers are staffs are in police control. RDB established six years ago has earned a profit of Rs. 60 million.

Source: THT