Nabil, Himalayan, NMB, NIC Asia, Lakshmi Sunrise and Citizens Bank in Action

Kathmandu: Central Bank has taken action against 6 commercial banks. Central Bank has taken action against Nabil, Himalayan, NMB, NIC Asia, Lakshmi Sunrise and Citizens Bank.The Central Bank has imposed cash fines on 2 banks.

Central Bank has taken action against commercial banks and bank presidents, directors and chief executive officers in the first quarter of the current financial year 2022/023 by the Supervisory Department of Central Bank. Lakshmi Sunrise Bank has been fined Rs.70 hundred thousand for violating the law and directives related to asset laundering.

Similarly, Himalayan Bank has fined Rs.10 thousand million 67 hundred for not maintaining loan-deposit ratio in the month of April, May. NMB Bank has disbursed the loans provided as commercial agriculture and livestock loans for other purposes and not for commercial purposes.It has been instructed to return the entire amount of interest subsidy provided in the loan from the borrower and deposit it in the National Bank.In addition, the CEO of the bank has been alerted for violating the procedures and instructions issued by the bank.

It is seen that Nabil Bank increased the interest rate in violation of the integrated guidelines, along with regular interest and penal recovery, increased the premium for not calculating risk-weighted assets according to the bank’s capital education framework 2015, took quarterly loan administration fees from the borrowers and provided lower interest than the published interest rate to the customers on institutional fixed deposits. The director and chief executive officer have been alerted.

Similarly, Citizens Bank has been alerted to the CEO for not classifying loans, not maintaining provisions for loan losses, not calculating risk-weighted assets according to the Capital Education Framework 2015, and repeatedly increasing the premium rate contrary to instructions.

NIC Asia Bank has been instructed to return the excess interest (Risk premium) taken from the customers to the respective customer’s account, but after not returning it, it has again increased the interest against the instructions. Contrary to the capital education framework, the bank has provided a low risk weight of the loan and has done wrong reporting. The CEO and the board of directors have been alerted after violating the integrated instructions issued by the National Bank.