Kist Bank is not in crisis: NRB
Nepal Rastra Bank has clarified that Kist Bank Limited does not have any financial crisis.
This comes a day after the Central Investigation Bureau (CIB) of the Nepal Police arrested Kist CEO Bal Narsingh Gharti and officials Pragun Shrestha and Manjay Raj Pandey for interrogation in the charge of banking fraud.
The central bank officials have said that the bank’s financial condition is “balanced” and that it is functioning smoothly as new officiating executives have already taken over.
NRB’s latest statement is a relief to the shareholders and other stakeholders in the commercial bank that had posted a slight loss of Rs.8.94 crore in the 4th quarter of the last fiscal year 2069/70.
It is yet to publish its first quarterly report for the current fiscal year.
In July the CIB had charged 16 people, including the former CEO of Kist Bank and Siddhartha Development Bank, for their involvement in a banking fraud.
The CIB had charged former CEO of Kist Dipendra Karki with loan fraud.
The bureau has also filed cases against other people accusing them of irregularities while issuing the loan.
Kishor Dhakal, who received the loan, Gauri Gyawali, the wife of the then Kist Bank CEO Kamal Prasad Gyawali who received the money from Dhakal, Shekhar Aryal, the chairman of Siddhartha Development Bank, Madhusudan Silwal, a former director of Siddhartha, and Komananda Adhikari, the government engineer who evaluated the land used as collateral for issuing the loan have all been arrested.
After the police arrested Gauri Gyawali on the charge of banking fraud and fingers pointing at him also, an embattled Kamal Prasad Gyawali had resigned from the post of CEO of and its operator.
Following Gyawali’s resignation the Bank had appointed Bal Narsimha Gharti as its CEO.
Gyawali's wife was arrested for her involvement in a multi-million rupee scam on business loans from the Siddhartha Development Bank.
Nepal Rastra Bank has clarified that Kist Bank Limited does not have any financial crisis.
This comes a day after the Central Investigation Bureau (CIB) of the Nepal Police arrested Kist CEO Bal Narsingh Gharti and officials Pragun Shrestha and Manjay Raj Pandey for interrogation in the charge of banking fraud.
The central bank officials have said that the bank’s financial condition is “balanced” and that it is functioning smoothly as new officiating executives have already taken over.
NRB’s latest statement is a relief to the shareholders and other stakeholders in the commercial bank that had posted a slight loss of Rs.8.94 crore in the 4th quarter of the last fiscal year 2069/70.
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| Kist Bank Head Office |
It is yet to publish its first quarterly report for the current fiscal year.
In July the CIB had charged 16 people, including the former CEO of Kist Bank and Siddhartha Development Bank, for their involvement in a banking fraud.
The CIB had charged former CEO of Kist Dipendra Karki with loan fraud.
The bureau has also filed cases against other people accusing them of irregularities while issuing the loan.
Kishor Dhakal, who received the loan, Gauri Gyawali, the wife of the then Kist Bank CEO Kamal Prasad Gyawali who received the money from Dhakal, Shekhar Aryal, the chairman of Siddhartha Development Bank, Madhusudan Silwal, a former director of Siddhartha, and Komananda Adhikari, the government engineer who evaluated the land used as collateral for issuing the loan have all been arrested.
After the police arrested Gauri Gyawali on the charge of banking fraud and fingers pointing at him also, an embattled Kamal Prasad Gyawali had resigned from the post of CEO of and its operator.
Following Gyawali’s resignation the Bank had appointed Bal Narsimha Gharti as its CEO.
Gyawali's wife was arrested for her involvement in a multi-million rupee scam on business loans from the Siddhartha Development Bank.
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