Vibor clears NRB loans

KATHMANDU, DEC 23 -

Vibor Bikas Bank has cleared all its outstanding liabilities to the Nepal Rastra Bank (NRB). The bank on Thursday paid the last installment of Rs 250 million to the central bank.

The central bank had rescued Vivor giving it loans worth Rs 688.6 million through its lender of last resort policy some six months ago when it went through an acute liquidity crisis due to huge withdrawals by individual and institutional depositors.

It had also taken additional Rs 188.6 million under NRB’s refinancing facility. “Vibor has cleared all its loans,” said a senior NRB official.

The bank generated the necessary amount by selling its seven ropanies and 10 anas of land at Bansbari.  Vibor CEO

Ajay Ghimire said his bank sold the land for Rs 185.1 million.

The remaining amount was generated by selling its loans to other banks financial institutions (BFIs) and using some of its own deposits, said the CEO. “We are relieved after clearing the loans. It will enhance our credibility,” said Ghimire. “We hope NRB will continue to support us in future.”

With depositors’ confidence in Vibor still remaining shaky, its liquidity position has not improved.

Vibor is constantly trying to find domestic and international strategic partners who could inject liquidity in the bank in the form of equity so that its capital structure and liquidity position would improve.

Source: Kantipur