Share this Twitter Myspace Digg Del.icio.us Slashdot Furl Yahoo Googlize this Blinklist Facebook Wikio Export PDF Print E-mail

The Patan Appellate Court on Sunday freezed all assets belonging to Nepal Development Bank (NDB).

The single bench of judge Devendra Gopal Shrestha issued an interim order prohibiting the bank to hand over, sell or put up its property as collateral.

The Appellate Court also ordered the troubled bank to submit a written clarification within seven days why it should not be liquidated.

The court gave the order in response to an application filed by Nepal Rastra Bank (NRB) seeking permission to liquidate the bank. The court has ordered the bank to produce itself before the court on July 8 and has also fixed the hearing for July 15.

If the court gives the order to liquidate NDB, the company registrar office will appoint a liquidator.

NRB had on June 3 decided to liquidate Nepal's first private sector development bank after its long effort to revive the latter's deteriorating financial health failed.

The central bank took this step on finding NDB's reply to its letter seeking clarification unsatisfactory.

The central bank had declared NDB a problematic bank in October 2007. Its accumulated losses had reached Rs 678.6 million by the end of mid-March 2009. nepalnews.com

Readers are kindly requested to avoid using offensive language and also refrain from issuing threats to others.

View Comments	Search
As postings are shown online immediately, please be warned of offensive comments

suman acharya  - Regulators biasness and ineffeciency   |202.52.240.xxx |2009-07-06 08:57:34 There is a big doubt in approving right shares and not deposited right shares money by insutional shareholders like NRB, EPF. BODs are the person who decides for banks capital plan. ON what basis they make a decision of issuing right shares and upon getting approval why didnt they applied for that. They just collected money from general shareholders/investors and they are going to liquidate the company. These insutional promoter are not only independent promoters but they are regulator. That is a big issue. On the other hand if that company was seek and NRB was trying to revive it, why dint they took step for not trading ordinary shares from stock exchange. On the other hand why they didnt liquidate NB bank, NCC Bank, Nepal Bank and RBB . These FIs also had/have eroded their capital base. Likely NRB as a regulator has authoruty and lot of options of revive of NDBL. Why didnt they think for reform going on management takeove... Powered by !JoomlaComment 3.26

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."