KATHMANDU, July 21: Nepal Rastra Bank (NRB) has taken action against five development banks and three finance companies for violating regulatory norms in the last quarter of the fiscal year 2023/24.

The development banks facing action include Karnali Development Bank, Narayani Development Bank, Corporate Development Bank, Sindhu Development Bank, and Excel Development Bank. Regarding the finance companies, Best Finance, Reliance Finance, and Progressive Finance were penalized by the regulatory body.

The central bank asked Narayani Development Bank and Sindhu Development Bank to implement prompt corrective action, after the banks were found not abiding by the threshold of capital adequacy ratio. Karnali Development Bank faced a cash penalty for failing to maintain the mandatory cash reserve ratio as per the regulatory requirements. 

Corporate Development Bank, Excel Development Bank, Best Finance, and Reliance Finance were penalized for delayed submission of balance sheets and profit and loss statements to the NRB and for late public disclosure of their financial statements.

Progressive Finance was found to have failed to complete its external audits and to hold its annual general meeting for the fiscal year 2021/22 within the specified timeframe.

 
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