NRB Takes Action Against Three Major Banks for Rule Violations
Summary
Nepal Rastra Bank has penalized NIC Asia Bank, Global IME Bank, and Nepal Investment Mega Bank for regulatory violations including financial reporting and loan management breaches during Q2 of fiscal year 2082/83.
Key Points
- Nepal Rastra Bank took formal action against NIC Asia Bank, Global IME Bank, and Nepal Investment Mega Bank for violating banking regulations.
- NIC Asia Bank's former Chairman and CEO were fined Rs. 200,000 each for repeated violations related to financial statement publication and non-compliance with NRB orders.
- Global IME Bank's CEO received a formal caution due to inadequate loan loss provisions and a technical loophole allowing re-creation of settled loans.
- Nepal Investment Mega Bank's board and CEO were formally cautioned for multiple lending violations including disbursing loans without proper security documents and violating working capital guidelines.
