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Who lost How much with NDB Liquidation

Published by Octron on June 3, 2009

It was 4 years ago when NRB intervened Nepal Bangldesh Bank to save from liquidation. People who had deposited millions were standing in queue for days to withdraw their money. People who invested in its stocks lost millions. There were even news of suicide of some big player, who couldn’t bear the news. Now, once again another bank gets into trouble. This time it gets much worse with Nepal Development Bank being liquidated.

According to the Republica, people are allowed to withdraw their deposited amount only till WEDNESDAY. The bank has a total deposit of Rs 720 million as at mid-March 2009. Of the total deposit, the bank has not been able to return Rs 330 million worth of institutional deposits, mainly belonging to Employees Provident Fund (EPF) and Nepal Army, even after the expiry of maturity date.

Here are the institutions which will have to bear huge loss;

Nepal Army Welfare Fund – 100 Million
Civil Provident Fund – 160 Million
Other Depositors – 90 Million
Share Holders – 100 Million

This completely shakes the popular MYTH among nepali investors who thinks they can never lose in Bank Shares. Bank can never go in loss. Also people who believed they can never lose money if they deposited in bank (specially Government Intervened). Investors are highly requested to DO THE MATHS, know the accounts before investing in any bank. Even for IPOs.

Do you have idea of which banks are currently holding (NEGATIVE/POOR) NET WORTH ?

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