Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has warned the Chief Executive Officer (CEO) and Board of Directors of Prabhu Bank Limited for violating regulatory provisions.
According to the second quarter inspection report of the fiscal year 2080/81 made public by the Department of Bank Supervision, the bank was found not complying with various provisions of the integrated directive.
According to the Nepal Rastra Bank, Prabhu Bank has maintained the risk weight of the loan against the provision related to the classification of risky assets. In addition, it has also been found that the sufficient basis for charging interest by increasing the risk premium has not been calculated.
Similarly, contrary to the Capital Adequacy Framework 2015, some loans have been provided with a lower risk weight, creating false risk assets, the report said.
Based on these shortcomings, the NRB has warned the bank’s chief executive officer. Likewise, the NRB has also cautioned the Board of Directors for not abiding by the provisions related to duties and accountability of the Board of Directors by not monitoring and monitoring such weaknesses on time.
