NRB asks private bank chief to quit

By Milan Mani Sharma

KATHMANDU, Feb 25: The Nepal Rastra Bank (NRB) has asked Shanker Man Dangol, Chairman of the Machchhapuchhre Bank, one of the late entrants to the Nepali banking sector, to resign from his post. The directive to this effect was reached last week, according to a highly placed source.

Dangol, talking to The Kathmandu Post, conceded that the NRB took a decision in that line and expressed his willingness to resign as the door was shown to him. This is the first incident whereby the central bank had axed the chairman of a private sector bank.

"The decision was taken after the central bank’s Monitoring and Supervision Division, Bank Regulation Department (BRD), found out that Dangol was the Managing Director of Colour Scanning Nepal (CSN) that was inadvertently blacklisted by the Credit Information Bureau (CIB)," said the source.

The decision goes by the latest directives of the central bank, which clearly states that no person or man involved in the firms blacklisted by the CIB, will be allowed to hold a sensitive and responsible post within the board of directors.

The CIB had blacklisted the CSN in 1998 following its failure to repay loans to Nepal Industrial Development Corporation (NIDC) running into Rs 17 million.

"Dangol was one among the borrowers from the CSN that had not repaid the loan to the NIDC yet," said the source. Dangol was subsequently blacklisted by the CIB following complaints from the NIDC board, he added.

Dangol’s blacklisting also went by the directives of the NRB issued to the CIB, whereby it had asked the CIB to blacklist those creditors who failed to repay debts of over Rs 2 million, even after a lapse of 6 months from the date stipulated, and running tantamount to collateral undervalued.

"The NRB was forced to take action against Dangol after he showed no sign of resigning from the post," the source said. However, Dangol held that the CSN was blacklisted only after he resigned from the CSN.

"I had quit the office of the CSN in 1996 and that was two years prior to the CSN’s blacklisting," he said. But he added that he still has an equity share of Rs 1 million in the CSN.

Earlier, the NRB had asked for clarifications from Dangol. "I had explained all the details regarding blacklisting of the CSN and had even expressed willingness to resign if the central bank demanded so," he further added.

Nepali rupee slids again

Post Report

KATHMANDU, Feb 25: In the latest series of deprecation of the Nepali rupee via-a-vis American dollar, the exchange rate of Nepali currency against the greenback today slipped by 25 paisa. The domestic currency, which was trading at Rs 77.80 against one unit of US dollar on Friday, tumbled to touch Rs 78.05 on Monday.

This is the fifth time within a month that the Nepali rupee has slid against the dollar. The rupee had last depreciated on February 9 when it tumbled by 30 paisa to touch Rs 77.80 from Rs 77.50.

The latest depreciation, like the past ones, was mainly due to the weakening Indian currency against the greenback. Since Nepal maintains fixed exchange rate with the Indian currency, any fluctuation of the Indian currency is directly reflected in the domestic currency.

The value of Indian currency against the US dollar remained at IRs 44.88 on Monday against the previous record of Rs 48.74 on Friday. Today’s depreciation was driven by the view that the Reserve Bank of India was guiding the currency lower in order to maintain its value on a trade-weighted basis.

Even after the Monday’s fall, the rupee is still overvalued by more than a per cent against a basket of major currencies of India’s top trading partners, analysts said.

Foreign employment promotion urged

Post Report

KATHMANDU, Feb 25: Men into the business of foreign employment today viewed that the business that stands amongst the largest foreign currency spinners should be promoted, properly regulated and made prestigious.

Lamenting over the widespread rumors about the employment agencies, they said that the foreign employment business as a whole cannot be blamed for what a very few agencies practice.

They were speaking at a programme on "Foreign Employment Business and Role of the Print Media" organised by the Reporters Club on Monday.

Shree Ram Malla Thakuri, Legal Advisor to Rose International, on the occasion said that about 200 foreign employment agencies are actively sending unemployed labourforce of the country overseas for employment, which is not only assisting them increase personal income but also supporting the national economy as well.

"Not all the agencies are working with good intent. However, that should not be generalised and the whole sector blamed," he stressed. He even alleged the print media of not highlighting the contribution of the foreign employment agencies to the national economy.

According to a report of Nepal Institute of Development Studies (NIDS), foreign employment has been generating remittance of over Rs 69 billion annually even as it is the largest foreign currency spinner.

"At a time when the employment opportunities is eroding in the country, foreign employment is an important means to increase national revenue, control social crises and curb ‘criminalisation’ of the youth," Thakuri said.