Nepal Rastra Bank returns helm of troubled H&B to its promoters - After five-and-a-half months of direct intervention in H&B Development Bank — a class ‘B’ financial institution — Nepal Rastra Bank (#NRB), on Monday, handed over the job of board of directors and management to the promoters of the bank citing an improvement in the bank’s financial health. The new board of directors (BoD) of the bank have been told to appoint a public director and professional director in the team of seven-member BoD, appoint management head, and hold annual general meeting (AGM) by mid-March of current fiscal, according to Manamohan Shrestha, spokesperson for NRB. Until then, Directors Gopal Prasad Bastola, Kedarman Karmacharya, Madhav Prasad Acharya, Mekh Bahadur Gurung and Sushil Raj Parajuli will oversee the bank. The central bank had taken over the management and board of the Kathmandu-based national level development bank on May 28 owing to its worsening financial health due to good-for-payment cheque fraud worth Rs 801 million and deputed a three-member team to take over the responsibility of board of directors and management of the bank. Following NRB’s intervention, the bank’s capital adequacy ratio has improved to a level higher than the regulatory requirement, according to NRB Spokesperson Shrestha. The then CEO of the bank, Jasoda Sainju, and then chief of the bank’s Kuleshwor branch Niraj Nepal, among others accused, are currently facing banking fraud charges over the good-for-payment cheque scam.
Posted on: Wed, 19 Nov 2014 03:37:32 +0000