Kathmandu. Himalayan Bank has been caught in a web of problems lately. Due to this, the bank’s profit has also declined sharply. The bank’s profit has decreased by 19.86 percent as of Magh of the current fiscal year.
Himalayan Bank’s profit as of Magh of the current fiscal year is Rs 1.47 billion. 24 lakh. While the bank’s profit as of Magh of the last fiscal year was Rs 1.83 billion. The profit has decreased by about 20 percent in the review period compared to the last fiscal year.
Commercial banks have earned Rs 36 billion more in profit in the 7 months of the current fiscal year. The data provided by Nepal Rastra Bank for the current fiscal year 2081-82 up to mid-Magh has shown this.
20 banks have earned a net profit of Rs 36.679 billion till Magh. However, this profit is only 1.62 percent higher than the same period of the previous fiscal year. By mid-Magh of the previous fiscal year, those banks had earned a net profit of Rs 35.492 billion.
Himalayan Bank’s profit has not only decreased, it has also disappointed shareholders. The bank’s distributable profit is negative till the second quarter of the current fiscal year. The bank has not even been able to distribute dividends to investors for 2 consecutive years. The bank has not been able to pay dividends to investors in the fiscal years 2080.81 and 2079.80.
On the one hand, the bank’s profits are declining, while on the other hand, it has been found that the bank’s high-level managers are making abnormal expenses. The bank’s annual report mentions that the telephone expenses incurred by Himalayan Bank CEO Ashok Rana have reached Rs. 1,340,031. His telephone expenses are very high. He has been accused by shareholders of spending this amount elsewhere by showing telephone expenses. In this way, Himalayan Bank is also getting into one problem after another.
Himalayan Bank started integrated business from Falgun 12, 2079 by merging with Civil Bank. Since then, the problems in the bank have been increasing.
The bank is currently unable to even collect non-performing loans. Therefore, it has a strategy to recover even by intimidating the borrower.
Himalayan Bank is led by Ashok Rana. He has been at the helm of the bank for about 16 years. The employees cannot openly oppose him. However, they have been having informal conversations with Rana, who is annoyed.
