KATHMANDU, SEPTEMBER 7
Nepal Rastra Bank has declared Super Laghubitta Bittiya Sanstha Ltd to be problematic.
Issuing a notice today, the central bank has declared the institution to be problematic after the chairman and members of the organisation were found to be colluding for personal gains.
Based on the overall on-site inspection conducted on the basis of the institution's financial statements up to October 2021, NRB shared that the chairman and members of the board of directors of the financial institution were involved in misusing the loan provision by setting up fake borrowers.
Also, the institution's capital fund was found to be negative by 10.31 per cent.
The central bank had asked the institution to furnish an explanation on March 16 2022, after problems arose in the institution. However, after not receiving a satisfactory answer, the NRB has declared the institution to be problematic, as per Section 86, Subsection 2 of the Nepal Rastra Bank Act.
The institution had only released the financial statement till the second quarter of the last fiscal year. The financial statements of the third and fourth quarters of the last fiscal year were not submitted.
A version of this article appears in the print on September 8, 2022 of The Himalayan Times.
