Wednesday, July 1, 2009

NDB’s Small Depositors Ask Deposit Back

Nepal Development Bank (NDB) Victims’ Group has asked the Nepal Rastra Bank (NRB) to return deposits of small depositors and amount of the rights shares of some shareholders as soon as possible as the court procedure will take a long time.

“If the liquidation is the last resort, we urge NRB to immediately get permission from the court and return small depositors money and the amount of rights shares,” said Kirti Madan Joshi, president of ad-hoc committee of NDB-Victims Group during a press meet here today.

They also urged to give a last chance to revive the ill-fated bank. “It should be given a last chance to revive,” he said suggesting three options - indirect intervention, and strict supervision, taking control of its management or appointment of new management team to revive the first development bank of the country. “NRB could form a new board of directors includ ing promoters like Nepal Army, Employees’ Provident Fund and investors,” he added.

The victims demanded to punish the existing management team, directors and senior officers of the bank for mismanaging the people’s deposit. “A bank cannot misuse public deposit,” the victims said warning that if their demands are not met they will go on strike.

“The liquidation of NDB is not the solution,” said Joshi adding that it would affect the entire financial sector.

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