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NRB says: NDB ORDINARY depositors’ money secure, But NOT insitutional

Published by Octron on June 14, 2009

The tug-of-war between NDB and NRB finally seems to have come to so conclusion regarding ordinary depositors money. After rigorious assesment of NDB by NRB, NRB says ordinary depositors money can be secured, but can’t say anything about institutional depositors money.

The central bank said in a press statement on Friday (12th June, 2009) that the deposits of the Employee Provident Fund and the Army Welfare Fund worth Rs. 331.4 million and Rs. 180 million respectively were most unlikely to be returned. NRB said that it had to seek clarification from NDB with the aim of liquidating it in order to protect ordinary depositors from further losses.

“NRB had to take such a measure as the bank’s top management had led it into a crisis situation and no sign of improvement was found,” it said in the statement. According to the central bank’s latest assessment, NDB’s capital fund remained negative by 48.31 percent and its non-performing loans stood at 55.09 percent.

Likewise, NRB also found that NDB’s losses stood at Rs. 690 million. Its non-banking assets were worth Rs. 175.7 million. The bank has also been unable to return the deposits of the two institutional depositors.

“These indicators strongly support NRB’s move to liquidate the company,” the central bank said.

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