Thursday, May 10, 2012

Central bank enforces PCA on financial institutions

The central bank has enforced prompt corrective actions (PCA) on Himalayan Finance and Arun Finance and sought explanation from Crystal Finance and Kuber Merchant Bank and Finance.
The management decision has enforced the PCA on them as they failed to maintain capital adequacy. Once the PCA is imposed, the banks and finance companies cannot mobilise deposits, open branches, distribute dividends and increase salaries and incentives of employees and add new employees that could add expenses.
The three class C finance companies have only not been able to maintain capital adequacy ratio but were suffering from bad corporate governance that attracted the central bank's move, according to the central bank sources.
The Nepal Rastra Bank regulation states that a class ‘C’ financial institutions must maintain 11 per cent capital adequacy ratio that is a measure of the amount of a bank’s core capital expressed as a percentage of its risk-weighted asset.
Earlier, the central bank has asked clarification from the finance companies  but their answer were found unsatisfactory forcing the central bank to enforce PCA.
Similarly, Crystal Finance and Kuber Merchant Bank and Finance have been asked to clarify why they have not been able to maintain capital adequacy and good corporate governance. After their reply, the central bank will impose PCA on them too, according to the central bank officials.
Meanwhile, the central bank board meeting today approved the merger between Global Bank, IME Financial Institution and Lord Buddha Finance.
On Monday, the special general meeting of Global Bank and IME Financial Institution has decided on the share price swap ratio of each financial institution for merger.
The special meeting — of the class ‘A’ commercial bank and class ‘C’ finance company under the same group — had approved the decision of the financial institutions to swap 100 unit shares of IME Financial Institution for 105 unit shares of Global Bank based on net worth calculated during Due Diligence Audit.
Global has a paid up capital of Rs 1.6 billion and a deposit base of Rs 18.9 billion and has floated loans worth Rs 15.2 billion. The bank’s listed stock in the share market exceeds 15 million units with market capitalisation worth Rs 2.4 billion. The bank’s stocks were last traded in February at Rs 160 per unit before it formally took up the merger procedure.
Likewise, IME provides banking services to more than 111,000 customers through 26 branches across Nepal. The finance company’s shares were last traded at Rs 201 in February. It has more than 3.6 million unit shares listed at Nepse with market capitalisation of Rs 723 million.
IME has a record of distributing dividends annually without fail. Following the merger, the combined paid up capital of the merged entity will be more than Rs 2 billion and will be able to fulfill Nepal Rastra Bank (NRB)’s regulation.
Lord Buddha Finance had also applied or merger with Global Bank and IME Financial Institute. Similarly, Pashupati Bikas Bank and Uddhayam Biaks Bank also got LOI for merger.


Anonymous said...

Hey there! Do you know if they make any plugins to protect

against hackers? I'm kinda paranoid about losing everything I've worked hard on.
Any recommendations?
Review my site :: placencia Bz real estate

Anonymous said...

I'm writing to

make you understand what a awesome experience my friend's girl found visiting your site.
She mastered lots

of issues, most

notably what it's like to have a great

teaching spirit to get other folks quite simply thoroughly grasp selected very confusing things. You undoubtedly surpassed visitors' expected results.
Many thanks for providing those good, safe,

educational as well as easy tips about your topic to Lizeth.
Also see my web site: mh olympus benidorm spain

Anonymous said...

I truly wanted to construct a simple word in order to

appreciate you for the wonderful tips and hints you are sharing at this
website. My time intensive internet look up has finally been honored with good quality strategies to exchange with my pals.
I would believe that we website visitors are undeniably endowed to exist in a wonderful

network with so many

special people with great basics. I feel

very much blessed to

have discovered your entire website and look forward to really more cool moments reading here.
Thanks a lot again for a lot of things.
Here is my web page : arcaplex spijkenisse agenda

Anonymous said...

Thanks , I have recently been searching for information about this topic for ages and yours is the best I have discovered till now.
But, what about the

bottom line? Are you sure about the source?
Also see my web site ::

Anonymous said...

You must take part in a contest for

probably the greatest blogs on the web. I'll

suggest this site!
Also visit my web-site - شعر عن فراق الاصدقاء

Anonymous said...

The next time I read a blog, I hope that it doesnt disappoint me as a

lot as this one. I mean, I know it was my option to read, but I

actually thought youd have something interesting to say.
All I

hear is a bunch of whining about something that you
would repair when you werent too busy on the lookout for attention.
Here is my blog ...

Anonymous said...

Thanks for another informative website.
Where else could I get that kind of

info written in such a perfect way? I have a project that I'm just now working on,

and I have been on the look out for such info.
Also visit my webpage :

Anonymous said...

Hmm it looks like your site ate my first comment (it was extremely
long) so I guess

I'll just sum it up what I had written and say, I'm thoroughly enjoying your blog.
I too am an

aspiring blog blogger but I'm still new to the whole thing. Do you have any

recommendations for first-time blog

writers? I'd really appreciate it.
Here is my page ::

Anonymous said...

Great blog here! Also your web site loads up very fast!
What host are you

using? Can I get your affiliate link to your host? I wish my site loaded up as quickly as yours

Also see my site > satellite tv jobs uk

Anonymous said...

It's a pity you don't have a donate button! I'd certainly donate to

this fantastic blog! I suppose for now i'll settle for

bookmarking and adding your RSS feed to my Google account.
I look forward to brand new updates and will talk

about this blog with my Facebook group. Talk soon!

Feel free to visit my blog;

Anonymous said...

Good day! I just want to give an

enormous thumbs up for the good information you've gotten here on this post. I shall be coming again to your weblog for more soon.

My homepage ::

Anonymous said...

Excellent goods from you, man. I have understand your stuff previous to and

you are just extremely magnificent. I actually
like what

you've acquired here, really like what you're stating and the way in which you

say it. You make it enjoyable and you still take care of to keep it sensible.

can not wait to read far more from you. This is actually a

tremendous website.

Also visit my page :: Saltwater Fishing Line Knots

Anonymous said...

Good - I should certainly pronounce, impressed with your
web site. I had no trouble

navigating through all tabs as well as related information ended
up being truly simple to do

to access. I recently found what I hoped for
before you know it in the least. Quite unusual.

likely to appreciate it for those who add forums
or anything, website theme . a tones way for

your customer to communicate. Excellent task.

Also visit my website: rhys real estate

Anonymous said...

excellent points altogether, you simply
gained a new reader.

What would you suggest in regards to your post that you made a
few days ago? Any positive?

Review my homepage saltwater fishing desktop backgrounds

Anonymous said...

Hi there, You've done a great job. I will certainly digg it and individually recommend

to my friends. I'm confident they'll be benefited from this web site.

my web page; Hawaiianeduvacation.blogspot.Fr

Anonymous said...

I truly wanted to type a brief message in order to

say thanks to you for all of the amazing tactics you are sharing here.
My particularly long internet investigation has finally been
rewarded with pleasant tips to go over with my pals. I would
say that we website visitors actually are extremely blessed to dwell in a

site with very many lovely professionals with useful techniques.

I feel

pretty privileged to

have encountered your entire site and look forward to tons of more


times reading here. Thanks once again for


my web page ::

Anonymous said...

Wow, superb weblog layout! How

lengthy have you ever been blogging for? you make running a
blog glance easy. The whole look of your site is

wonderful, as neatly as the content material!

Also visit my blog ... spain's Two strongest kingdoms

Anonymous said...

very nice put up, i definitely love this web site, keep
on it

Feel free to visit my web-site ... equinoterapia en cantabria

Anonymous said...

hey there and thank you for your information - I have definitely picked up

something new from right here. I did however expertise some technical issues using
this web

site, since I experienced to reload the website a lot of times previous

to I could get it to load properly. I had been wondering if your hosting
is OK? Not that

I am complaining, but slow loading instances times will sometimes affect your

placement in google and could damage your high-quality score if ads and

marketing with Adwords. Well I’m adding this RSS to my e-mail
and can look out for a lot more of your respective interesting content.

Ensure that you update

this again soon..

Here is my web page - property Law dower

Anonymous said...

Great - I should certainly pronounce, impressed with your website.

I had no trouble

navigating through all the tabs and related info ended up
being truly easy to do

to access. I recently found what I hoped for before you know
it in the least. Reasonably unusual. Is

likely to appreciate it for those who add forums or anything, website theme .
a tones way for

your client to communicate. Excellent task..

Take a look at my blog:

Anonymous said...

Excellent blog you have here but I was curious about
if you knew of any user discussion forums that cover the same topics talked about
here? I'd really like to

be a part of online community where I can get opinions from other experienced people that share the same interest. If you have any

recommendations, please let me know. Thanks!

My web page btn property expo 2013 di jcc

Anonymous said...

It’s really a nice and useful piece of info.
I’m glad that you

shared this useful info with us. Please keep us informed like this.

Thanks for


Feel free to surf to my weblog:

Anonymous said...

Have you ever considered about including a little bit
more than just your articles? I mean, what you say

is fundamental and everything. But just imagine if you added some great visuals or videos to give your posts more,

"pop"! Your content is excellent but with pics and videos,
this blog could

certainly be one of the most beneficial in its niche.
Terrific blog!

Feel free to visit my website - Iluminacion Torrevieja

Anonymous said...

My spouse and I stumbled over here different
web page and thought I may as well check things out. I like
what I see so now i am following you. Look forward to finding out about your web
page yet again.

Here is my web blog:

Anonymous said...

Spot on with this write-up, I really suppose this web site wants

far more consideration. I’ll probably be once

more to learn much more, thanks for that info.

Also visit my webpage ...

Anonymous said...

I'm just commenting to let you know of the outstanding experience our girl developed reading your

blog. She noticed a good number of issues, including how it is like to have an excellent

helping heart to let other individuals easily know specific advanced subject matter. You undoubtedly exceeded visitors' expected results.
Many thanks for coming up with such necessary, trusted, informative and also cool thoughts on that topic to Tanya.

Feel free to surf to my web-site ::