A board meeting of Kist Bank held on Saturday accepted Gyawali"s resignation.[break]
Gyawali had resigned from the post on moral grounds. In his resignation letter, Gyawali has stated that he had stepped down to safeguard the bank"s reputation and assist the police in investigation.
Gyawali"s responsibilities at the bank have now been transferred to Bal Narsimha Gharti, who was appointed as the bank"s deputy CEO by Saturday"s board meeting. Gharti has been in the banking sector for last 16 years and has served in different capacities at different banks.
The development comes four days after Gyawali"s wife Gauri Khanal (Gyawali) along with an accomplice, Kishore Dhakal, were arrested.
Gyawali was under immense pressure from the Kist"s board to step down following the arrest of his wife. The CIB had arrested Gyawali"s wife and Dhakal after investigation showed involvement of the duo in securing a loan from Siddhartha Development Bank in an illegal manner and misusing it.
The investigation had shown that Jamko Publication, a company promoted by Dhakal, had acquired a business loan of Rs 130 million from Siddhartha Development Bank by overvaluing the collateral used to secure the credit. It is said a plot of land worth Rs 60 million was pawned to secure the loan of Rs 130 million. The amount was later transferred to an account in Prime Commercial Bank owned by Gyawali"s wife.
The loan amount of Rs 130 million and interest of around Rs 30 million have not been paid so far.
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