Market Watch

NDB refunds depositors

Published by Octron on March 2, 2010

The regional office of Nepal Development Bank has started to pay back deposits of account holders here following the liquidation process of the bank. The office started to refund deposits under the coordination of Keshab Poudel, representative of the bank’s liquidator Narayan Bajaj. “We refunded Rs. 5.1 million through cheque and Rs. 52, 000 through cash on the first day,” said Poudel. “The facility of paying back the deposits will continue.”

A total of 67 persons received their deposits back on Wednesday through cheque. There are around 700 depositors in the regional office and they will be refunded deposits of Rs. 24.9 million, for which the liquidator has already set aside the amount needed. Since the liquidator has not set any specific date deadline, the depositors can collect their savings on any day of the week. The highest amount deposited in the regional branch stands at Rs. 4.7 million.

“We are capable of refunding 75 percent of the amount of 99 percent depositors from this region,” said Poudel. “Though, we are still undecided on the right of the share holders.” Depositors having savings up to Rs. 800,000 and below will be refunded cent percent and their accounts will be closed. Depositors with more than Rs. 800,000 deposits will be paid on the basis of money collected from loan recovery and the selling of fixed assets. According to Poudel, since the liquidation process, they have recovered loans amounting to Rs. 23 million and are in the process to recover the remaining Rs. 55.56 million.

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