Patan court orders NDBL to suspend activities

KATHMANDU: The Patan Appellate Court today issued an interlocutory order to the Nepal Development Bank Ltd (NDBL) to suspend its work till Wednesday. Following today's hearing, a single bench of Judge Devendra Gopal Shrestha issued the order to the NDBL until another hearing on Wednesday whether or not to extend the interlocutory order. The bench was responding to the application of the Nepal Rastra Bank, demanding to liquidate the NDBL. The bench also added that the court would issue its final decision on July 15.

On Friday, the central bank moved the court demanding its approval to liquidate the NDBL. Governor of the central bank, Dipendra Bahadur Chhetri, lodged an application seeking the Patan Appellate Court's approval to liquidate the NDBL as per the decision of the board of directors of the NRB on June 22 to shut down the bank. The central bank informed that the NDBL was on a total loss of Rs 670.87 million with a total assets of Rs 730.13 million.

The central bank stated that the condition of the NDBL would not improve as it had failed to abide by the directives of the central bank. It also stated that the NDBL did not follow the norms and values of the central bank.