Not only who steal money from state dhukiti by preparing false vat bills, raise voice against who take loans from banking institution thinking as if its their own property. This has been a growing trend nowdays in todays banking sector in nepal, which can be fatal for banking industry in Nepal


NRB to seize former NSM chairman’s passport

Nepal Rastra Bank (NRB) has decided to seize the passport of Yogendra Prasad Shrestha, former executive chairman of Nepal Share Market and Finance (NSM), and take action against him. A board meeting of the central bank on Sunday took the decision saying that Shrestha misappropriated more than Rs 2 billion.

As per the law, Shrestha may face a three to five years prison sentence. “It has been decided that action will be taken against Shrestha as per the law, and Nepal Rastra Bank Act, Bank and Financial Institutions Act and Banking Offence and Punishment Act are focussing on it,” said an NRB board member. “Initial probe shows huge irregularities in the company,” said a senior NRB official.

According to the central bank, investigation is still underway and the Nepal Rastra Bank Act, Bank and Financial Institutions Act and Banking Offence will be invoked in this case. These acts have provisions ranging from stopping dividend distribution to sending the institution into liquidation.

The central bank on Thursday had frozen Shrestha’s bank accounts and lockers for his refusal to produce documents sought by the NRB’s supervision team. The banking regulator has also frozen bank accounts of Gita Shrestha and Saurav Shrestha, relatives of Shrestha.

The NRB’s initial investigation found that Shrestha took loans from his own company in the name of fake loanees. Shrestha also misappropriated Rs 200 million of Rastriya Beema Sansthan (RBS). According to NRB officials, the deposit of RBS has not been included in the corporate deposit details that NSM has to send to the central bank.

The Nepal Share Market and Finance (NSM) episode has established what was feared in the domestic financial market. Bad corporate governance is spread in the banking fraternity and it is high time that the regulator took a hard decision.

A series of corporate governance mishaps have hit the domestic financial market hard, with NSM the latest casualty. The NSM episode shows how vulnerable corporate governance is in development banks and financial institutions. “The situation is much worse that what we had thought,” said a senior NRB official.

This fiscal year alone, the central bank has taken action against nine financial institutions (FIs) including five finance companies. In similar cases, the central bank penalised promoters, stopped FIs from collecting deposits, lending and distributing dividends.

In all cases, promoters were found to have manipulated banking norms related to insider lending. They also did not allow the management to work professionally. Those FIs having the same person as chairman and chief executive have suffered bad corporate governance the most, as seen in Samjhana Finance, United Development Bank, Gurkha Development Bank and Nepal Share Market.

The central bank was forced to dismiss DB Bamjan, then executive chairman of Gurkha, after a series of scandals plagued the bank. Several Gurkha promoters borrowed around Rs 500 million through third parties.

NRB investigation further showed that Gurkha, violating the Bank and Financial Institution Act (BAFIA), was in the  process of buying land worth millions of rupees owned by its own promoter, Krishi Premura Holding. The bank had already paid Rs 300 million of Rs 900 million, the valued price of the land located at Kamaladi, Kathmandu.

Such was the level of irregularities that the central bank on April 29 had decided to write to the authorities concerned asking them to freeze all fixed and movable assets belonging to former directors, employees and loanees of the bank responsible for financial crisis in the institution, and take action against them under the Banking Offense Act. Officials facing the central bank’s action are former executive chairman Bamjan and directors Nirmal Gurung, Dhan Prasad Rai, Dinesh Shakya, Mina Shrestha, Sanjeev Kumar Mishra, Mahesh Prasad Rijal and Ramesh Tamang.

NRB investigation found that former executive chairman Bamjan took around Rs 250 million, while former general manager Shrestha and director Dhan Prasad Rai received Rs140 million and Rs 30 million, respectively, through third parties.

On Feb. 8, NRB decided to liquidate Banepa-based Samjhana Finance after the institution failed to recover from the financial crisis within stipulated time. Major promoters’ involvement in taking loans for themselves and their kin against banking norms led the finance company towards disaster. In Samjhana’s case, directors were not only involved in insider lending, they were also hiding details of certain transactions.

The risky behaviour of the promoters of Bara-based United Development Bank (UDB) led the central bank to declare  it crisis-ridden. The promoters were found taking loans against banking norms and the BAFIA. UDB Chairman Rabindra Bahadur Singh and director Radha Krishna Amatya were each fined Rs 500,000.

The central bank in February banned three FIs—Mercantile Finance (Birgunj), Multipurpose Finance (Rajbiraj) and Investa Finance (Birgunj) from collecting deposits, lending and distributing dividends to shareholders for their failure to increase their paid-up capital on a proportional basis every year

जनता ठग्ने बैंकर्सहरु नेताबाटै संरक्षित

फितलो कारवाही, मौलाउँदो बिकृति

१९ जेठ, काठमाण्डौ । बैंक तथा वित्तिय संस्था खोल्ने र सर्वसाधारणले जम्मा गरेको पैसा आफु र आफन्तको हितमा लगाएर करोडौं रुपैयाँ घोटाला गर्ने ठूलाबडाहरुको संख्या बढ्दै छ । राष्ट्रवैंकले अनुसन्धानबाट दोषी देखिएका त्यस्ता दुई दर्जनभन्दा बढी संचालकहरुलाई पक्राउ गर्न प्रहरीलाई खबर गरिसकेको छ । यो लहरोमा अन्य बैंक तथा बित्तिय संस्थाका संचालकहरु पनि तानिने राष्ट्रवैंकसम्बद्ध स्रोतको दावी छ । सर्वसाधारणको रकम हिनामिना गरेको र नियम विपरीत काम गरेको भन्दै राष्ट्र बैंकले दुई दर्जन भन्दा बढीलाई पक्राउ गरी कार्वाही गर्न प्रहरीसँग अनुरोध गरेको झण्डै दुई हप्ता भयो । प्रहरीले अहिलेसम्म ३ जनालाई पक्राउ गरेको छ । अरु फरार छन् ।

पक्राउ पर्नेहरु

· गोर्खा विकास बैंकका भूपू संचालक डीबी बम्जन ।

· युनाईटेड विकास बैंकका दुईजना रविन्द्रबहादुर सिंह र राधाकृष्ण अमात्य ।

फरार

· गोर्खा विकास बैंकका संचालक निर्मल गुरुङ, धनप्रसाद राई, दिनेश शाक्य, मिना श्रेष्ठ, संजिव मिश्र, महेशप्रसाद रिजाल, रमेश तामाङ ।

· गोर्खा विकास बैंकका कर्मचारीहरु राजेन्द्रदास श्रेष्ठ, दिपक राना मगर ।

· गोर्खा विकास बैंकका ऋणी र अन्यमा प्रवीण नौलाखा, राकेशकुमार अडुकिया, संजिव अग्रवाल, जीवन घिमिरे, रुची जाजोडिया, पुनम खेतान ।

· नेपाल शेयर मार्केट्स एण्ड फाईनान्समा योगेन्द्रप्रसाद श्रेष्ठ, गीता श्रेष्ठ, सौरभ श्रेष्ठ ।

· सम्झना फाईनान्सका श्यामबहादुर श्रेष्ठ, हिमबहादुर गुरुङ, सरोज बज्राचार्य, विजयमणि आचार्य, प्रवीण खनाल, पवन खनाल ।

यस बाहेक नेपाल विकास बैंकका केही संचालकलाई पनि कार्वाही गर्नुपर्ने भएकाले सूची छिटै सार्वजनिक गर्ने राष्ट्र बैंकले तयारी गरेको छ । तर राष्ट्रवैंकले कारवाहीका सिफारिस गरेका र पुलिसले वारेन्ट जारी गरेका यी वित्तिय अपराधीहरु राजधानीकै तारे होटलमा चुस्की लगाउँदै, नेताका दैलो धाउँदै आफुलाई बचाउने अभियानमा छन् । प्रहरी भने खोजी जारी रहेको निरिह जवाफ दिएर उम्किरहेको छ ।

 फितलो कार्वाही

सर्वसाधारणको रकम हिनामिना गरी लाभ लिनेहरुलाई कसुर हेरी जरीवानादेखि जेल चलानसम्म गर्न सकिने कानुनी प्रावधान छ । तर हालसम्म ठूलै बैंकिङ कसुर गर्ने व्यक्ति पनि जेल चलान भएको उदाहरण छैन । आर्थिक वर्ष २०६७।०६८ मा राष्ट्र बैंक र फाइनान्स गरी १० वटालाई कार्वाही भएको राष्ट्र बैंकले जनाएको छ । जसमा तीनजना सञ्चालक तथा व्यवस्थापक पदबाट हटाईएका छन् । यसबाहेक कार्वाहीमा परेकालाई १५ लाख २५ हजार जरीवाना गरिएको छ । बैंकिङ कसूरमा कार्वाही गर्ने निकाय राष्ट्र बैंक भएकाले अन्य मार्फत उम्केको हुन सक्ने राष्ट्र बैंकका प्रवक्ता भाष्करमणि ज्ञवाली बताउनुहुन्छ । बैंकिङ क्षेत्रमा सबैभन्दा अनियमितता पछि खारेज भएको नेपाल विकास बैंक डुबाउने व्यक्तिले कुनै कार्वाही भोगेका छैनन् । खारेजीको प्रकृयामा गएको सम्झना फाईनान्सका कुनै पदाधिकारी पक्राउ परेका छैनन् । राजनीतिक हस्तक्षेपका कारण पक्राउ परेका पनि छुट्ने गरेका छन् । स्रोतका अनुसार कतिपय बैंक तथा वित्तिय संचालक राजनीतिक पृष्ठभूमीका भएकाले कार्वाही गर्न प्रहरीलाई समस्या परेको छ । प्रहरीले फरार भनेर खोजी गरिरहेका वैंक संचालकहरु काठमाण्डौंकै तारे होटलमा गोप्य मिटिङहरु गरिरहन्छन तर समातिएका छैनन् ।

मौलाउँदो विकृति

चालू आर्थिक वर्षमा एकपछि अर्को गर्दै बैंक तथा वित्तीय संस्थामा अनियमिता गर्नेहरुको संख्या बढ्न थालेको छ । बित्तीय अपराध बढ्नुमा राष्ट्र बैंक नै बढी दोषी रहेको धेरैको ठम्याई छ । ‘नियमन निकाय नै फितलो भयो’ अर्थशास्त्री विश्वम्भर प्याकुरेलले भन्नुभयो – ‘२०४०/०४१ को संयन्त्रमा कुनै परिवर्तन भएको छैन ।’ प्रविधि र जनशक्तिमा समय सुहाउँदो सुधार हुनुपर्ने उहाँको सुझाव छ । वित्तीय अपराधीहरु फरार रहेको अवस्थामा पुगेपछि मात्र कार्वाहीका लागि पत्राचार गर्ने गरेको राष्ट्र बैंकलाई आरोप लाग्ने गरेको छ । हचुवाको भरमा बैंक तथा वित्तिय संस्था खुल्न दिनाले पनि यस्तो समस्या आएको भन्नेहरु पनि छन् । तर राष्ट्र बैंकका प्रवक्ता भाष्करमणि पोखरेल यसमा सहमत हुनुहुन्न । नियमन तथा अनुगमनको अभाव भन्दा पनि व्यक्तिको प्रवृत्ति र मुलुकको अवस्थाले विकृति देखिने गरेको उहाँले बताउनुभयो ।

Police arrest former exe chairman of Samjhana Finance

Former executive chairman of Samjhana Finance Shyam Bahadur Shrestha has been arrested on charges of his involvement in financial irregularities worth millions of rupees.

Nepal Police’s Central Investigation Bureau (CIB) on Sunday arrested Shrestha from his own residence in Samakusi, Kathmandu. Shrestha has been accused of involvement in the scam worth Rs. 20 million in the finance company.

According to the CIB, following Shrestha’s involvement in the irregular activities Central bank asked the police to take necessary action against him as per the Banking Offense and Punishment Act.

Last year, the central bank had termed the company ‘problematic’ and decided to dissolve the company as its executive officers have been found of involvement in misappropriation of worth over Rs. 650 million.

The bank also said that the blamed chief executive have affected the financial health of the company as they themselves have taken the loans without the approval of loan committee and proper guarantee. Hem Bahadur Gurung and senior managers Saroj Bajracharya, Bijayamani Acharya, Prabin Kumar Khanal and Pawan Kumar Khanal among others are also accused of being involved in financial irregularity in the case

People's Finance closed


All branches of People's Finance Company including the head office have closed from Monday as the company could not reimburse its depositors.

The finance company was closed issuing a notice on Monday. The notice said, the company cannot open due to technical reasons.

Company offices were closed as it did not have enough liquidity to reimburse its depositors.

The company fell into extreme financial crisis after an institutional depositor, Nepal Rastra Bank (NRB), withdrew Rs 70 million deposited in fixed account last week.

The company, with a paid-up capital of about Rs 280 million, has issued loans almost worth Rs 1 billion. Most of the investment is in real estate sector.

NRB has initiated probe into the financial crisis of the bank. The promoter of the company is absconding.

51 percent share of the company is owned by the promoter, while 49 percent is owned by public

यिनी हरु सबै पार्टी बाट सुरक्षा प्राप्त गरेका छन अनी हप्ता बुझाएका पनि छन । एउटा हैन बिसौ MADEOFF निक्लिए नेपालमा ।

People’s Finance exec chair found involved in huge financial irregularities

Nepal Rastra Bank (NRB) has revealed that the executive chairperson of People’s Finance, Chhabilal Bhusal, has been found involved in large amount of financial irregularities in the company.

The special inspection team deployed by the NRB found that Bhusal was involved in many irregularities while issuing loans and has also taken loans for himself in the name of other borrowers from the company.

According to the bank and financial institution act (BAFIA), promoters of the bank and financial institutions cannot issue loans for themselves from their own company.

Bhusal has been found making huge investment in real estate and housing sector from the loan he took from his own company, according to a NRB source.

All branches of People's Finance Company including the head office have closed from Monday as the company could not reimburse its depositors.

The finance company was closed issuing a notice on Monday. The notice said, the company cannot open due to technical reasons.

The company fell into extreme financial crisis after an institutional depositor, Nepal Rastra Bank (NRB), withdrew Rs 70 million deposited in fixed account last week.

The company, with a paid-up capital of about Rs 280 million, has issued loans worth almost Rs 1 billion. Most of the investment is in real estate sector

WHICH ONE IS NEXT? VIBOR DEVELOPEMENT BANK HEADED BY MIT ALMUNI

Another financial institution (FI) has approached Nepal Rastra Bank (NRB) for liquidity injection. Gripped by acute liquidity shortage, Vibor Development Bank (VDB) on Wednesday sought succour from NRB and Nepal Bankers Association (NBA).

After Nepal Rastra Bank pulled out its fixed deposit of Rs 260 million followed by Nepal Army’s Rs 50 million, Vibor dived into acute liquidity shortage. Nepal Army had taken loans about Rs 50 million against its deposit in the bank.

With two financial institutions asking for liquidity in two days, there are fears in the financial sector the situation could drag down other other financial institutions. “The government must step in,” said a leading banker. “It should announce immediate measures to control the situation.”

Ajay Ghimire, chief executive officer of VDB, admitted that his bank had approached NRB and NBA for liquidity management. During talks with NBA on Wednesday, bankers urged VDB to let NRB take over its management until its liquidity situation stabilises.

 “All banks showed reluctance to provide inter-banking loans and suggested VDB allow management takeover,” said a banker who attended the meeting. “Bankers were uncomfortable to provide VDB inter-bank loan as it didn’t have enough security instruments like treasury bills and bonds.”

Despite good credit to deposit ratio of 58.09 percent, the bank has struggled to manage liquidity. According to Ghimire, the problem at Vibor is purely a liquidity one, not systemic risk. “We’ve asked the central bank to ease the liquidity problem,” said Ghimire. 

As of Q3 of the current fiscal year, its non-performing loan has gone up to 8.42 percent from 0.42 percent during the same period last year. The bank has been incurring net loss of Rs 88.44 million as of its third quarterly report. The bank said it is due to recovery problems in some loans, especially slow recovery in realty and housing sector. According to the banker, Vibor had asked for liquidity around Rs 200 million through interbank lending. The central bank was undecided until Wednesday how to bail it out. NRB has called a board meeting on Thursday.

NRB Deputy Governor Gopal Kafle said the central bank hasn’t thought of taking control of the bank. “Any decision on the bank would be taken by the central bank’s board meeting on Thursday,” said Kafle. The central bank could opt for refinancing measure instead of takeover.

NRB had earlier provided refinancing facility of Rs 190 million to the bank. According to Ghimire, the bank was struggling to manage liquidity position for few weeks and had taken refinancing facility from the central bank. “After the Nepal Share Market episode, we’d taken refinancing facility from the central bank and were in recovery mode,” said Ghimire. “However, there was pressure on deposit withdrawal from Monday with People’s Finance closing down its transaction due to liquidity shortage.”

Bankers say it is time the government set up confidence building measures. According to them, a series of government decisions at the same time heightened problems in the banking sector. “Neither the government nor NRB sees the gravity of the problem,” said a banker. “The decision to withdraw  Rs 500/Rs 1000 notes bearing the former king’s likeness, income disclosure provision, issuance of bond by the government despite enough cash in the treasury has worsened the situation