Nepal Rastra Bank (NRB) has taken over the board and management of Nepal Share Markets and Finance Ltd. (NSM) as the existing board failed to recover the financial health of the company.
NRB has deployed three-member team under the coordination of deputy director Santosh Ghimire at NSM including assistant directors Kaji Ram Karki and Prakash Shrestha to look at the overall financial system of the company from today.
The finance company was declared crisis-ridden in 2011 after the inspection of its management and was asked to recover its minimum capital, said the central bank in a statement on Sunday.
However, the finance company failed to follow the directive and the central bank has decided to take over the existing board and appoint new one.
As per the Due Deligence Audit (DDA) report, the former chairman of the company Yogendra Shrestha had been found misusing the bank’s amount, said NRB. “Shrestha had embezzled Rs 1.99 billion and taken additional Rs 690 million as loan in the name of his kin,” NRB said in its statement.
Though the management of the NSM has recovered its loan to some extent Rs 2.13 billion is yet to replenished. According to NRB, the management was found to be working for the sake of Shrestha instead of improving the institution’s financial health.
The central bank had taken over the management of the NCC Bank a few days ago.