KATHMANDU, Dec 26: Nepal Stock Exchange (NEPSE) has halted the trading of Karnali Development Bank shares after the Nepal Rastra Bank (NRB) declared it ‘crisis ridden’. The NRB has taken control of the bank's management, citing issues such as weak capital ratios, financial mismanagement, and liquidity problems.
The Securities Board of Nepal (SEBON) instructed NEPSE to stop trading and submit a report. The NRB formed a three-member management group to oversee the bank's operations.
The bank had been under corrective action since November 2019 due to financial instability. Despite the issues, its shares were traded at Rs 810 per unit on Tuesday.