CIB arrests Kist Bank higher officials; new acting chief appointed

The Centrel Bureau of Investigation (CIB) under Nepal Police today afternoon arrested three higher officials of Kist Bank on chargess of lending Jamko Publication without enough collateral.

The CIB arrested acting chief executive of Kist Bank Bal Narsimha Gharti, deputy general manager Pragun Shrestha, deputy manager Manjay Raj pandey and valuator Komananda Adhikari for their involvement in the lending.

Likewise, CIB has arrested the then director and head of the Lending Committee of Siddhartha Development Bank Madan Bahadur Basnet, who is accused of being involved in lending Rs 49.9 million to Shova Giri, has also been arrested on November 20.

Kist Bank had lent Rs 120 million to the Jamko Publication for its business expansion without enough collateral, the CIB said, adding that it has been in search for some more officials involved in the case.

In the same case of lending Jamko Publication, the CIB had in June arrested Gauri Khanal Gnawali, the wife of then managing director of the bank Kamal Prasad Gnawali, who resigned after the arrest of his wife.
Kist Bank had appointed Bal Narsimha Gharti as acting chief executive after Gnawali's resignation.

Likewise, the bank has today appointed Bhesraj Khatiwada as acting chief of the bank that is planning to hold annual general meeting next month.

Kist Bank that has some Rs 20 billion deposit – by the end of the first quarter of the current fiscal year – has been improving its financial health as it has been reducing its toxic assets and cutting down the realty lending to the central bank prescribed level. It has also reduced its loss to Rs 27.40 million in the first quarter of the current fiscal year.

The bank's share trading has been suspended by the Nepal Stock Exchange (Nepse) as it was planning to merge with Vibor Development Bank. But the merger plan was dropped recently and the bank was planning to start its share trading at the Nepse this week.