Rs. 148.5 Million Fine to Standard Chartered: NRB Penalizes Five Commercial Banks

Nepal Rastra Bank has taken action against five commercial banks for regulatory violations in the third quarter of the current fiscal year. The penalized banks include Rastriya Banijya Bank, Kumari Bank, Laxmi Sunrise Bank, Nepal Bank, and Standard Chartered Bank.

Standard Chartered Bank was fined Rs. 148.5 million for failing to meet the minimum credit disbursement requirement in designated sectors. Laxmi Sunrise Bank was found to have serious lapses in credit risk management and issued loans without Nepal Rastra Bank's approval using founder shares as collateral, prompting a warning to its CEO.

Rastriya Banijya Bank and Kumari Bank were cautioned for not properly classifying overdue loans and failing to manage loan risks as per guidelines. Nepal Bank was also warned due to poor implementation of strategic plans and lack of coordination among senior management. Additionally, former board chairman Dr. Chandra Bahadur Adhikari of Nepal Bank was fined Rs. 500,000 for misusing his position for personal benefit.