Thursday, June 13, 2013

Gurkha Development Bank depositors can withdrawal money

Gurkha Development Bank has finally said that its depositors can now withdraw their deposits starting from Sunday.
The development bank – that had run into trouble due to lack of good corporate governance and misappropriation of funds by its directors and executives since March 2011 – had only allowed a minimum deposit withdrawal for the last two years after its financial mismanagement was revealed. The central bank had declared troubled-institution in March, 2011.
According to the class 'B' financial institution, depositors with less than Rs 50,000 balance can withdraw all the excess balance above the minimum requirement, whereas those with deposits between Rs 50,000 and Rs 1 million can withdraw 50 per cent of the total deposit held at on one go.
However, after that they can only withdraw half of the remaining balance every fortnight.
Likewise, people with deposits of more than Rs 1 million can withdraw up to Rs 500,000 and the remaining balance can be withdrawn after coordinating with the bank.
The national level development bank has deposits worth Rs 2.09 billion, as of the end of the third quarter and it has floated loans worth Rs 1.93 billion during the period. However, the bank’s capital fund is negative by Rs 1.05 billion.
The central bank team is managing the development bank since the last six months. Though the bank has called for a strategic partner twice, no was seems interested in engaging with the team that has no corporate ethics. However, former Gurkha soldiers, who are the key promoters, have started injecting the capital to resurrect the development bank.

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