Kathmandu. KATHMANDU: Nepal Rastra Bank (NRB) has taken action against the Chief Executive Officer (CEO) of Himalayan Bank Limited (HBL) for violating regulatory provisions. It has also alerted the board of directors of the bank.
According to the second quarter supervision report of the financial year 2080/81 made public by the Department of Bank Supervision, the bank has been found to have reported more capital adequacy ratio than the actual amount while calculating the capital adequacy ratio, without following the regulatory directives, without deducting the amount to be deducted from the primary capital and adjusting the reserve amount.
According to the Nepal Rastra Bank, Himalayan Bank has not classified loan risk as per the Integrated Directive, 2081 BS and has not maintained the risk weight of the loan as per the rules.
Based on this weakness, the directive action was taken against the Chief Executive Officer of the bank as per clause (a) of sub-section (2) of Section 100 of the Nepal Rastra Bank Act, 2058.
Similarly, the Board of Directors of the bank has also been cautioned as per the Nepal Rastra Bank Act, 2058 BS for failing to carry out effective monitoring and monitoring on these issues on time. Nepal Rastra Bank (NRB) has directed the banks to fully comply with the regulatory provisions and rectify such weaknesses immediately.
