Kathmandu
Nepal Rastra Bank (NRB) have terminated Karnali Development Bank from collecting
additional deposits and disbursing credit.
It is informed that due to the challenging financial situation of the organization, to
protect the interest of General Pubic and Depositers, speedy corrective action has
been taken.
Targeted observation report was fomulated by NRB from 6 th to 11 th Shrawan 2081.
It has been reported that Supervisiory Adjustment carried out by NRB could not meet Capital Ratio as targetted by Rastra Bank, likewise non-performing loan was 40.85 %, led to such action.
Agreeing on the condition of NRB to make improvement in the Financial Index within 6 months through new management, Karnali Development Bank has been terminated from collecting additional deposits, opening new Deposit account and disbursing credit, applying it from today.