NDB victims appeal for revival of bank

The Small shareholders and depositors of Nepal Development Bank (NDB) have appealed to the Patan Appellate Court to giver verdict in favour of granting one last chance for revival.
 
They said that the resuming the operation of the NDB would be the one and only best option in favour of Nepal Rastra Bank (NRB), NDB, the depositors and all the shareholders.

Addressing a press conference on Monday in the capital, Kirti Madan Joshi, president of the NDB Victims Association ad-hoc committee said that a group led by Badri Bhattarai was ready to invest Rs. 640 million in the bank to revive it while NRB has called for its liquidation.

“NRB has asked for Rs. 600 million for the revival of the bank,” he said.  The central bank has made it clear that NDB should be liquidated if any party fails to inject fresh capital in the amount of the loss it has incurred. 

The probe committee headed by chartered accountant Tirtha Raj Upadhyay had also suggested reviving the bank on the ground that some commercial banks were ready to provide a guarantee. 

Central bank officials said that the regulatory authority could not support the bank guarantee except a fresh capital injection. The court  is yet give a final decision on whether to liquidate the bank or let it resume operation on Wednesday. The central bank on June 3, 2009 had decided to liquidate Nepal's first development bank and sought the court's decision to proceed with the liquidation.
 
Joshi said that no company should be liquidated on the ground that the management failed to do better for it. He also demanded that the savings of all the depositors and the investment of the shareholders should be returned if the bank is shut down.  

Prior to the Dashain festival, individual depositors had also received up to Rs. 200,000 depending on their deposits as per the court's special order. If the bank is liquidated, savings account holders will get their money first after the liquidator's expenses are deducted. Other depositors are second in line for payment followed by the shareholders as per the Bank and Financial Institution Act. 

There are more than 3,500 depositors at NDB. The central bank froze the bank's liquidity of Rs. 90 million after its management moved to liquidate it.