February 22, 2024, Thursday
Nepal 1:37:26 pm

Central Bank takes action against three commercial banks

The Nepal Weekly
August 8, 2023

Nepal Rastra Bank (NRB) has taken action against three commercial banks for violating its regulations. According to the officials of the central bank the commercial banks that violated the regulatory system in the fourth quarter of the last fiscal year 2022/23 have been penalized.

Himalayan Bank and Kumari Bank have been slapped with cash penalties for not maintaining the 90 percent credit-to-deposit ratio (CD ratio) as per NRB directives. Himalayan Bank has been slapped with a cash penalty of Rs 13.9 million for not meeting the CD ratio in October of the last fiscal year. Similarly, Kumari Bank got a cash penalty of Rs 5.96 million on non-compliance of the CD ratio in January of the last fiscal year.

Likewise, Prime Commercial Bank received warning from the central bank for its non-compliance with the loan loss system which should be maintained as per the instruction No. 2 in the Unified Directives of 2079 issued by the NRB.

The chief executive officer of Prime Commercial Bank has been warned for charging interest by increasing the premium rate contrary to the provision of Section 100 of the Unified Directives 2079 BS.