NRB to let MGBB staff handle business
KATHMANDU, JUL 09 -
Nepal Rastra Bank (NRB) will give up its day-to-day role in the operation of the Madhyamanchal Grameen Bikas Bank (MGBB). The central bank will now hand over the task to senior staffers of the rural bank.
The NRB had taken over the rural bank’s management in May 2010 after irregularities at the hands of its promoters surfaced. The promoters had links with the banned United Life Insurance (ULI).
The NRB board on Friday decided to allow senior staffers of the rural bank to take over operations although the central bank will continue to lead its board. According to the board decision, NRB’s Janakpur chief manager will head a new five-member MGBB board, while two persons will be appointed from the category of promoter banks and two from the general public’s quota.
The NRB has sold its shares in the the rural bank to the public, while commercial banks, including Nepal Bangladesh Bank, Bank of Kathmandu and Agriculture Development Bank, also have their stake in it.
“Now, the rural development bank will technically remain under the NRB as it is yet to fully recover from its bad financial health,” a senior official of the NRB said.
Until the last fiscal year, the MGBB was incurring a loss of Rs 20 million. Currently, the NRB has been looking into both the board and management of the rural bank. After it was revealed that the earlier board was involved in harming the bank’s interests by helping the ULI in its racket, running its office at the Unity Tower without the NRB’s approval and misusing the bank’s network to induct members for ULI, the NRB board had taken over the MGBB management.
Source:Kantipur
Nepal Rastra Bank (NRB) will give up its day-to-day role in the operation of the Madhyamanchal Grameen Bikas Bank (MGBB). The central bank will now hand over the task to senior staffers of the rural bank.
The NRB had taken over the rural bank’s management in May 2010 after irregularities at the hands of its promoters surfaced. The promoters had links with the banned United Life Insurance (ULI).
The NRB board on Friday decided to allow senior staffers of the rural bank to take over operations although the central bank will continue to lead its board. According to the board decision, NRB’s Janakpur chief manager will head a new five-member MGBB board, while two persons will be appointed from the category of promoter banks and two from the general public’s quota.
The NRB has sold its shares in the the rural bank to the public, while commercial banks, including Nepal Bangladesh Bank, Bank of Kathmandu and Agriculture Development Bank, also have their stake in it.
“Now, the rural development bank will technically remain under the NRB as it is yet to fully recover from its bad financial health,” a senior official of the NRB said.
Until the last fiscal year, the MGBB was incurring a loss of Rs 20 million. Currently, the NRB has been looking into both the board and management of the rural bank. After it was revealed that the earlier board was involved in harming the bank’s interests by helping the ULI in its racket, running its office at the Unity Tower without the NRB’s approval and misusing the bank’s network to induct members for ULI, the NRB board had taken over the MGBB management.
Source:Kantipur
