H&B Bank’s suspended CEO‚ operator arrested

Police on Wednesday nabbed the then Chief Executive Officer (CEO) of the H&B Development Bank, Jasoda Sainju, who was charged of misappropriating amounts deposited at the bank.

The 50-year-old banker from Koteshwor, KMC-35, along with members of Board of Directors, is accused of embezzling 47.8 million deposited at the bank by one Prashant Agrawal of the New Asia Pacific Traders Pvt Ltd.

Likewise, on Thursday, police also arrested Pushpa Jyoti Dhungana (40), one of the operators of the bank, for her alleged involvement in the same case.

The Nepal Rastra Bank (NRB) on May 28 had taken over management of the bank suspending Sainju from the CEO position after the class ‘B’ financial institution failed to improve its financial health despite repeated instructions.

A police team deployed from the Metropolitan Police Crime Division (MPCD) had nabbed Sainju and Dhungana from different places of the Capital.

Police said the duo were handed over to the Metropolitan Police Range, Hanumandhoka for further investigations into the case under the Banking Offence and Punishment Act, 2008.

H&B Development Bank has been facing financial problems since December 2012 when the fake good-for-payment cheque scandal broke out due to weak internal control system.

At that time the bank’s Kuleshwor branch manager, Niraj Nepal, had colluded with few other people to issue fake good-for-payment cheque, which caused the bank to lose at least Rs 426.18 million.

The scam has already caused the bank to allocate a fund of Rs 665.59 million for loan loss provisioning and caused its capital adequacy ratio — which gauges shock absorbing capacity of financial institutions — to deplete to 8.10 per cent, as against regulatory requirement of 11 per cent for development banks, shows NRB report.

Source: THT