Kathmandu, Sept. 2:
Governor of Nepal Rastra Bank (NRB), Dr. Chiranjivi
Nepal, Friday warned the bank and financial institutions (BFIs) of severe
punishment and their dissolution if they were found misappropriating the
public’s savings.
Inaugurating
Vibor-Society Development Bank Limited (VSDBL), an institution created
after the merger of two ‘B’ class development banks- Vibor Bikas Bank and
Society Development Bank, the governor instructed the Board of Directors and management
of BFIs to be vigilant and cautious in
mobilizing the deposits.
“As the new Nepal Rastra Bank Act has enabled the
NRB to dissolve the BFIs, you should be careful not to let the companies go off
track,” stated the governor.
The Legislature-Parliament endorsed the Nepal Rastra
Bank (Second Amendment) Bill 2073 on Thursday, September 1.
In absence of the power to dissolve the BFIs, the
banking sector regulator, NRB, had to go to the court with the case and it used
to take years to dissolve the company and liquidate it.
Governor Dr. Nepal viewed that the BFIs were not
like the other profit-oriented companies and therefore they should not mobilize
loans in the risk areas to earn higher profits.
He informed that about Rs. 16 billion deposits in
various BFIs had been embezzled so far.
Saying that the BFIs were the custodians of the
public savings, he urged them to work in such a way that the public felt secure
about their deposits in the banks.
Chief executive officer of the new bank, Jhalak
Prasad Khanal, informed that the VSDBL, had now become the strongest
development bank in terms of paid up capital and branch network.
The paid up capital of the bank has reached Rs. 1.81
billion which is the highest amongst the development banks in the country.
The new bank has mobilized Rs. 14 billion deposits
and Rs. 11 billion loans.
It has 42 branches network, one extension counter,
12 ATMs across the country.
VSDBL's central office has been located at the head
office of erstwhile Vibor Bikas Bank.
Sushil Raj Parajuli, Ashok Raj Pandey, Dr. Roop
Jyoti, Hari Prasad Rimal, Rajesh Kumar Agrawal and Prem Raj Tiwari have been
elected to the Board of Directors.
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