Kathmandu Post

MONEY»

Depositors don’t panic, Gurkha Dev Bank says

KATHMANDU, APR 23 -
Gurkha Development Bank has urged depositors not to withdraw deposits exceeding their requirement, claiming that their money is secure.

Two days before the reopening of its counters that were closed for the last three weeks, the bank urged depositors not to worry about their deposits. “As we have insured individual deposits of up to Rs 200,000, depositors should not worry,” stated a press release of the crisis-ridden development bank. The bank made it clear that it will return deposits of all depositors gradually as per the suggestion of the Nepal Rastra Bank (NRB). The new board has also formulated a deposits withdrawal plan.

The board said they are working on recovering bad debts and collecting amount by opening a call in advance account. The board has also assured its shareholders and depositors that it will appoint a new professional management team to run the bank in a more efficient way.

Meanwhile, the new board has elected Prem Bahadur Begha as the bank’s chairman.

Other members of the board are Jayanti Kala Rai, Dharma Kumar Rai and Aamod Dumjon representing promoters and Ram Kaji Paudel and Puspa Lal Aryal representing public shareholders in the six-member board. On March 25, the central bank had declared Gurkha crisis-ridden after its financial situation worsened as a result of bad governance.  Following the declaration, it was barred from collecting deposits and lending. The central bank has also banned it to open new branches and sell fixed assets.

The NRB had told the bank to decrease it non-performing loan to 5 percent within the next six months and take action against employees and officials involved in providing loans illegally.

Posted on: 2011-04-24 09:16

---