Bankers close to the development told myrepublica.com that the Nepal Rastra Bank (NRB) was forced to call all the directors of the bank to the central bank after the management failed to organize a crucial board meeting to close annual financial transactions amid deepening disputes among the bank directors. [break]
Though we have managed to find an amicable solution to the problem, it is difficult to say how sustainable will that be since core issue of ´deep mistrust among board members´ has yet to be solved, said a banker.
A central bank official defended the step taken by the Nepal Rastra Bank and said that it was aimed at averting possible management takeover by the central bank, as the bank has been failing to organize routine board meetings for the last three months.
The disputes were so deep that directors were even not ready to sit for face-to-face negotiations, said the official. The central bank facilitated the meeting of the bank´s board of directors and the last board meeting of the fiscal year 2009/10 was held at the central bank itself, the official said.
During the meeting, around six dozens of loans were renewed, some of which were inferior loans in terms of their repayment mode, claimed a banker.
However, Sunrise Bank officials have refuted the allegations. Suman Neupane, officiating Chief Executive Director of the bank, said the bank management had made no compromise on the quality of assets.
"Despite some problems seen lately, I can assure all concerned that quality of assets and governance of the bank are in excellent condition," Neupane claimed.
Bank Chairman Tolaram Dugar, who had resigned from the post amid rising disputes but backtracked later as a part of a deal brokered by the central bank, toned down the event and said that all the outstanding disputes and misunderstandings have been settled.
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