KATHMANDU, FEBRUARY 16
Nepal Rastra Bank (NRB) has taken regulatory action against three commercial banks.
The central bank has imposed measures on NIC Asia Bank, Global IME Bank Limited, and Nepal Investment Mega Bank Limited for allegedly operating in violation of the Nepal Rastra Bank Act and the integrated directives issued for banks and financial institutions.
"NIC Asia Bank Limited has repeatedly breached the central bank's directives by publishing financial statements without compliance and failing to adhere to written orders issued to the bank," the NRB stated.
As per Section 100 (2)(c) of the Nepal Rastra Bank Act, 2058 (including the second amendment of 2073), former Chairperson of NIC Asia Bank's Board of Directors, Tulsi Ram Agrawal, and former Chief Executive Officer, Roshan Kumar Nyaupane, have each been fined NPR 200,000 in cash. This information was included in the report on actions taken during the second quarter of the current fiscal year, released today by the central bank.
Meanwhile, NIC Asia's current Chief Executive Officer received a caution based on the on-site inspection report of Global IME Bank Limited, 2082.
The inspection noted that Global IME Bank failed to establish adequate loan loss provisions and did not fully comply with arrangements related to loan rescheduling and restructuring, as mandated under the Integrated Directives 2081. Additionally, the NRB observed that settled loans could potentially be recreated in the bank's core banking software while retaining their original "value date," raising concerns about regulatory compliance.
Similarly, Nepal Investment Mega Bank Limited was found, contrary to central bank instructions, to have improperly secured loan-related documents and failed to obtain customer signatures when disbursing loans exceeding the guaranteed amounts. The NRB further noted that interest rates on comparable loans differed by more than two percentage points and that new short-term loans were disbursed in the final months of the quarter in violation of the Current Capital Loan Guidelines, 2079.
Consequently, the boards of directors and chief executive officers of these banks were formally warned, underscoring the NRB's commitment to strict regulatory oversight.