NRB Takes Action Against These 8 Commercial Banks for Violating NRB Guidelines
NRB takes action against these eight commercial Banks for violating NRB Guidelines.
Nepal Credit and Commerce Bank – Now Kumari Bank Limited:
Contrary to the integrated method for concessional loans, NCC granted more than one concessional loan to the same group, failed to provide enough loan loss coverage in some loans, and altered the premium rate in some loans in violation of NRB directives. A violation was discovered, and the Chief Executive Officer was notified in accordance with section 100's sub-section (2) (a) of the Nepal Rastra Bank Act of 2058.
When disbursing subsidized loans, Kumari Bank did not verify the loans' justifications, paid more interest on some fixed deposits than the published interest rate, failed to include sufficient loan loss provisions and risk weighting in some loans, and otherwise violated the NRB's instructions.
As the Chief Executive Officer approved the loan beyond his authority, Mr. Amritcharan Shrestha, the then Chief Executive Officer of Nepal Credit and Commerce Bank Limited, has been fined Rs. Five lakh.
Rastriya Banijya Bank – Under scrutiny, it was found that the bank was involved in a money laundering transaction and has been charged penalty worth Rs. 10 Lakh.
Century Commercial Bank: Now Prabhu Bank – For not maintaining the required ratio of loans and deposits i.e CD Ratio worth Rs. 2.84 Crores for the month of Shrawan and Bhadra.
Nepal Bank Limited: For not maintaining the required ratio of loans and deposits i.e CD Ratio worth Rs. 1.85 Crores for the month of Shrawan.
Nabil Bank: For not maintaining the required ratio of loans and deposits i.e CD Ratio worth Rs. 6.46 Crores for the month of Shrawan, Bhadra and Ashoj.
Global IME Bank Limited: For not maintaining the required ratio of loans and deposits i.e CD Ratio worth Rs. 4.42 Crores for the month of Bhadra and Ashoj.
Agriculture Development Bank: For not maintaining the required ratio of loans and deposits i.e CD Ratio worth Rs. 69.58 Lakhs for the month of Bhadra.
Himalayan Bank Limited: For not maintaining the required ratio of loans and deposits i.e CD Ratio worth Rs. 71.72 Lakhs for the month of Bhadra.
