Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has issued a notice to Narayani Development Bank Ltd for violating regulatory provisions and has issued a notice to its board of directors.
According to the fourth quarter supervision report of the fiscal year 2080/81 released by the Department of Bank Supervision, both the development banks have been found to have made different types of regulatory weaknesses.
According to the Nepal Rastra Bank (NRB), Narayani Development Bank Limited has failed to take action against the top manager of banks and financial institutions as per the Bylaws, 2074 BS. According to the report, the bank has been placed under continuous supervisory action as necessary action has not been completed even after February 29, 2080.
Likewise, the Corporate Development Bank Limited has not submitted its real profit and loss statements on time in contravention of the Bank and Financial Institutions Act, 2073, Company Act, 2063 and Integrated Directive, 2080. As a result, the annual general meeting of the bank was held late than the deadline.
Based on this weakness, Nepal Rastra Bank (NRB) has warned the Board of Directors of Corporate Development Bank Limited as per Section 100 of Nepal Rastra Bank Act, 2058 BS.
Nepal Rastra Bank (NRB) has directed all the banks and financial institutions (BFIs) to fully comply with the existing laws, regulatory directives and provisions related to good governance.
