Monday, December 23, 2013

Boardroom battle hits Nepal Credit And Commerce Bank

Kathmandu, Dec 23

The power struggle between two promoter factions at Nepal Credit and Commerce Bank ( NCC ) has affected smooth operation of the financial institution.

The two warring factions—one representing the NB Group and the other led by Nirmal Pradhan—are doing their bit to establish their dominance.

A bank source said the group led by Pradhan, a prominent stock investor, is seeking to control the board at a time when NB Group has weakened its position.

Some key members of NB Group are on the wanted list of the police for financial crimes.

The two groups are also fighting for the control of
National Hydro-power company as well, which has left the company in tatters.

NCC Bank Chairman Prithvi Raj Ligal admitted to the power struggle at the bank and said the central bank was working to bring the two sides together.

“The bank’s financial report is good, but the  central bank has right to take action if it finds any problem,” Ligal said.

A central bank inspection team has concluded daily operation of the bank has been affected due to the confrontation between the two sides.

A senior NRB official said the bank board has not met for the last two-three months. But Ligal said the meeting has been taking place at least once a month. “We are awaiting the NRB inspection team’s report,” said a senior NRB official. “Based on the recommendation, necessary action will be taken.”

The NRB official said the central bank could take over the bank’s movement if the situation remains the same for a longer period.

Earlier, the central bank had taken over the management of Bank of Kathmandu over a dispute between two promoter groups.

Source: The Kathmandu Post

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