Image for Representation.
KATHMANDU: Nepal Rastra Bank (NRB) has taken action against the Nabil Bank Limited for not abiding by the central bank’s instructions on the credit-deposit ratio (CD ratio).
The Central Bank has fined Nabil Bank 6.5 million rupees.
The central bank has fixed the CD ratio at 90 percent.
The central bank rejected Nabil’s appeal to get discount on CD ratio due to merger with Nepal Bangladesh Bank (NBB) and fined the amount.
Devkumar Dhakal, Executive Director of Banks and Financial Institutions Supervision Department of Rashtra Bank, said that Nabil was fined after the CD ratio was not reached before merging NBB and doing integrated banking business.
Nabil and NBB had integrated business on July 11. Then the CD ratio of the bank was 89.79 percent.