KATHMANDU: Around 4,000 depositors of Nepal Development Bank (NDB) are troubled ahead of this festive season.
In a bid to get more interest, they had deposited their hard-earned money in the bank that had all along flouted Nepal Rastra Bank’s (NRB) directives.
The depositors are clueless when they could get their money back since the matter has gone into a legal loop. The Patan Appellate Court has appointed TR Upadhyaya as an investigation officer on July 29 as per Insolvency Act, 2007. He is likely to submit the report in a couple of days.
The Court will decide on the NDB’s fate only after it receives Upadhyaya’s report. The
NDB may either be revived or liquidated as
per the court’s order. Though Upadhyaya is following the due procedures, the depositors are getting restive.
The investigation officer is poring over two capital plans — put forth by Badri Bhattarai and associates and the
Nimbus Group.
The depositors, meanwhile, have come up with a suggestion.
They are willing to assist the new investors by not withdrawing their accumulated sum — around Rs 350 million —for the next six months.
“We want the bank
to reopen at the earliest. Hence, we’d like to withdraw money in installments,” said Kirti Madan Joshi, president, Nepal Bikash Bank Peedit Sangh.
The victims have learnt their lesson the hard
way. Reliability is the key and not just the lure of high interest.
Badri Bhattarai — current promoter of NDB — and his group are looking at settling the Non-Performing Assets and Non-Banking Assets before injecting Rs 240 million as capital. Bhattarai holds 10,000 units of promoters’ shares in the NDB.
Nimbus Group and associates plan to buy
out the promoters, who have been held responsible for sullying the
NDB’s reputation. It also plans to issue rights shares to increase the capital to Rs 640 million by end of next year.
The Group has offered the depositors the
choice to withdraw their money. It is ready to deposit Rs 32 million — 10 per cent of their proposed Rs 320 million capital injection — as and when NRB deems fit.
The NDB has only 30 staff on its rolls, which include employees in the Pokhara branch and the head office in the capital.
It has around 20,000 shareholders.