Anup Pradhan, manager at the company´s Lalitpur branch, was arrested on Wednesday on charges of providing loans going against the norms set by Nepal Rastra Bank and thereby causing losses to the company.[break]
“Necessary investigation has been launched against Pradhan,” said the CIB in a statement.
The CIB on Friday had arrested Himalaya Bhakta Pradhananga, former chairman of the finance company, and Shyam Krishna Shrestha, its acting general manager, on charges of misappropriation of funds.
Nepal Rastra Bank had earlier declared the finance company as troubled after finding that the institution was maintaining a negative core capital of 7.82 percent.
The finance company was also found to have kept a shoddy record of borrowers, with credit details of many missing. “It had been extending and renewing loans haphazardly, without conducting any inspection, while the records of many borrowers who had paid off their loans were erased,” said the NRB report. “As a result, the recovery of the credit seems difficult.”
At the same time, the finance company was also found issuing threats to depositors who wanted to withdraw their funds from the institution. “And all the while the company had been submitting doctored financial statements to the Rastra Bank,” the NRB report said.
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