Nepal Rastra Bank (NRB) has punished three commercial banks. The officials of NRB have stated that the commercial banks that violated the regulatory system in the fourth quarter of the last fiscal year 2022/23 have been punished.
Kumari Bank and Himalayan Bank have been slapped with cash penalties for not maintaining the 90 percent credit-to-deposit ratio (CD ratio) set by the NRB.
Kumari Bank was slapped with a cash penalty of Rs 5.96 million on non-compliance of the CD ratio in January of the last fiscal year.
Similarly, Himalayan Bank has been slapped with a cash penalty of Rs 13.9 million for not meeting the CD ratio in October of the last fiscal year.
On the other hand, Prime Commercial Bank has been warned by the NRB. The officials of NRB have said that the bank has been found to be non-compliant with the loan loss system which should be maintained according to the instruction Number 2 in the Unified Directives 2079 BS issued by the NRB.
Similarly, according to the ‘Capital Adequacy Framework 2015’, Prime Bank has been found to have calculated risk-weighted assets below the actual value, according to the NRB.
Similarly, the chief executive officer of Prime Commercial Bank has been warned for charging interest by increasing the premium rate contrary to the provision of Section 100 of the Unified Directives 2079 BS.
