Rajan ghimire-
Nepal Rastra Bank (NRB) has taken over the management of Bank of Kathmandu (BoK) by suspending the latter’s board, following confusion that arose with deepening disputes among promoters of the bank.
An emergency board meeting of the central bank Tuesday evening decided to take over BoK management for up to three months or until the former is convinced the incumbent management is capable of running the bank on its own.
The central bank came to such decision after it got two letters in response to a clarification call it sought on the termination of erstwhile Chief Executive Officer Radheshyam Pant, clearly revealing disputes within the promoters. Responding to the clarification call, the BoK board, based on a majority decision, wrote to the central bank that firing erstwhile CEO Pant was an internal matter and a normal process of the bank. However, promoters dissatisfied with the board’s decision expressed their grudge with the central bank urging the latter to intervene.
The central bank has decided to deploy a four-member NRB board led by Director Laxmi Prapanna Niraula to manage the bank. The NRB deployed board will work in coordination with existing acting chief executive Sabin Lal Shrestha.
The management has been taken over due to the failure of BoK management to safeguard interests of Bank’s promoters and depositors due to ongoing disputes among promoters, the central bank said.
An emergency board meeting of the central bank Tuesday evening decided to take over BoK management for up to three months or until the former is convinced the incumbent management is capable of running the bank on its own.
The central bank came to such decision after it got two letters in response to a clarification call it sought on the termination of erstwhile Chief Executive Officer Radheshyam Pant, clearly revealing disputes within the promoters. Responding to the clarification call, the BoK board, based on a majority decision, wrote to the central bank that firing erstwhile CEO Pant was an internal matter and a normal process of the bank. However, promoters dissatisfied with the board’s decision expressed their grudge with the central bank urging the latter to intervene.
The central bank has decided to deploy a four-member NRB board led by Director Laxmi Prapanna Niraula to manage the bank. The NRB deployed board will work in coordination with existing acting chief executive Sabin Lal Shrestha.
The management has been taken over due to the failure of BoK management to safeguard interests of Bank’s promoters and depositors due to ongoing disputes among promoters, the central bank said.
source:http://www.nepalnews.com
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