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Sunrise bank factions ‘strike deal’
KATHMANDU, JUL 22 -
Two warring board member factions of Sunrise Bank on Thursday said they had buried their differences and vowed to work together amid possibility of Nepal Rastra Bank (NRB) taking over the bank.
Following the agreement among the members, an NRB official told the Post that the central bank will not take over the bank. The members said they have sent a letter to NRB saying that there are no diference of opinion between them now. The board members said they have struck a deal on “sticky issues” but delayed settlement on some issues on which differences remain.
The two groups led by Chairman Tolaram Dugar and Director Shrawan Goyal had differences over the appointment of the company secretary and professional director.
Both sides had also been seeking their role in the board’s different sub-committees. The bank on Thursday issued a notice for the appointment of the company secretary.
“It is the outcome of our agreement,” Dugar told a press meet on Thursday. The board members, however, did not say how they reached the agreement.
However, the board members also admitted that they have differences of opinion on the appointment of the professional director. “We have vowed that we will settle every difference on the basis of consensus,” Dugar added.
NRB had asked the board to appoint the professional director by Tuesday last. However, the bank failed to meet the deadline.
The bank’s director Suresh Kumar Basnet also said they have agreed to settle the differences on the professional director on the basis of consensus.
NRB officials said Sunrise Bank’s board meeting held on the premises of the central bank last Thursday also scrapped the credit disbursement and finance committee and recruitment committee as per directions of the NRB.
However, Basnet said the committees have not been scrapped, but only their rights have been suspended.
The NRB was compelled to summon all the directors of the bank to its office after the Sunrise failed to organise a crucial board meeting to close annual financial transactions. The bank was failing to hold its board meeting for the past three months due
to dispute between the two sides.
“Now, the annual financial transactions have been closed following the last minute agreement,” Dugar said. Despite the dispute among the board members, the bank’s general manager Suman Neupane said the bank was able to ensure quality of loans.
The bank said its operating profit soared by 125 percent to Rs. 300.4 million last fiscal year and it now has a customer base of 110,000.
It also collected deposits of Rs. 15 billion and made a lending of Rs. 12 billion, according to the bank. The bank currently has 40 branches.
Posted on: 2010-07-23 08:29
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