Kathmandu. Roshan Neupane, chief executive officer (CEO) of NIC Asia Bank, who has been weak in most financial indicators, seems to be under extreme stress.
Nic Asia Bank CEO Neupane, who was once a leader in some financial indicators due to risk-taking aggressive business, has now become a situation to sit on the chair or leave. Ceo Neupane is now in a position to decide whether to leave the bank or continue for the rest of his tenure after facing humiliating treatment from the board chairman Tulsiram Agrawal due to poor business performance.
Even in meetings with other bankers, Neupane’s performance does not seem to be strong. It is heard that due to the excessive pressure of the board, there is mental stress in such a way that it cannot be tolerated. Neupane, who could not face the pressure of the board, has been complaining that before the start of office hours in the morning, he has started calling deputy CEO to province chief in a virtual meeting. “When the day starts with insulting statements, the zeal to work disappears,” complained the victim’s employees, “Is it our fault or is it the result of policy weakness?”
Due to bad loans and loss arrangements, NIC Asia last fiscal year 2081. The distributable profit from the profit of Rs 82 is significantly negative. According to the bank’s revised financial statement, the distributable profit is negative at Rs 5.21 billion.
In the last fiscal year, the bank earned a profit of Rs 161.5 million. This is the previous fiscal year 2080. This is a decrease of 76.97 percent compared to Rs 701.4 million in 81. In the previous fiscal year, the net profit was negative at Rs 2.66 billion.
The board of directors of the bank has become angry with the top management, including CEO Neupane, as the shareholders of the bank could not get returns on investment for two consecutive years.
The amount of bad debt is high as it is trying to do anything for business growth, ignoring financial health. Apart from this, this bank is famous on the negative side because it has been treating customers and borrowers unequally by focusing on profits.
Recently, Nepal Rastra Bank (NRB) has warned the bank about the violation of banking discipline, charging more than the prescribed interest from the borrower in violation of the provisions of the Unified Directive, 2074 BS, not clearly mentioning the necessary details in the loan agreement and not informing the bank about the change in the interest rate.
In the second quarter of the last fiscal year, the bank’s directors and their family members were found to be paying more interest than the rate published on the deposit. Ceo Neupane, Chairman Agrawal and directors Trilok Chandra Agrawal and Ram Chandra Sanghai were also advised in this regard as per the Rastra Bank Act.
Nepal Rastra Bank (NRB) has again directed the banks not to carry out any activities against any rules, formulate a reform action plan and implement it immediately and submit the report regularly as it has been found that the directives related to interest rate, loan classification, capital fund, risk burden and institutional good governance have not been followed during the regulatory inspection.
NIC Asia has already cut a large number of intern workers due to the collapse of business. Apart from this, a strategy has been adopted to pressure the housewives to review the house restoration agreement as much as possible to reduce the cost of house restoration, otherwise, leaving some part of the area and running the office in a limited area. Apart from this, the additional service facilities provided by the employees have also been reduced significantly.
