KATHMANDU, Sept 7: Nepal Rastra Bank (NRB) on Wednesday declared Super Laghubitta Bittiya Sanstha, a Dang-based microfinance, as problematic after its high level officials were found to be involved in a number of misconducts.
With the NRB’s declaration, the microfinance has been barred from carrying out other financial transactions except recovering their loans and payment of deposits it has collected so far. The financial institution has been accused of issuing loans to the board members by creating ‘fake creditors’ to secure undue benefits.
The microfinance company landed into trouble after its capital fund dropped to a negative 10.31 percent. After NRB detected anomalies during the onsite inspection of the microfinance last year, the central bank took clarification from the institution on March 16.
Super Microfinance has now Rs 43.40 million in its additional fund and its paid up capital is Rs 19.50 million. It has received an advance of Rs 517.80 million from the central bank.
Super Microfinance got its operating license two years ago. Kiran Chaudhary is the chairman and Buddhi Ram Chaudhary is acting CEO of the microfinance company.