5 development banks, 3 finance companies face the music

KATHMANDU, JULY 21: Nepal Rastra Bank (NRB) has taken action against five development banks and three finance companies for breaching regulatory norms in the last quarter of the fiscal year 2023/24.

The development banks include Karnali Development Bank, Narayani Development Bank, Corporate Development Bank, Sindhu Development Bank, and Excel Development Bank.  Similarly, Best Finance, Reliance Finance, and Progressive Finance are the finance companies 

 Narayani Development Bank and Sindhu Development Bank were penalised for not meeting the threshold of the capital adequacy ratio while Karnali Development Bank faced a penalty for not maintaining the mandatory cash reserve ratio as per the regulatory requirements.

The central bank penalised Corporate Development Bank, Excel Development Bank, Best Finance, and Reliance Finance for not submitting balance sheets, profit and loss statements and financial statements in a timely way,

Progressive Finance, in particular,  was penalised for its failure to complete its external audits and hold its annual general meeting for the fiscal year 2021/22 within the set timeframe.