Four Banking Associations Express Concern Over CEO Jyoti Prakash Pandey's Detention

Kathmandu. Four umbrella organizations of the banking sector have expressed serious concern over the detention of Nepal Investment Mega Bank Limited's Chief Executive Officer (CEO) Jyoti Prakash Pandey by the police.

After the Central Investigation Bureau (CIB) of Nepal Police took Pandey into custody on Wednesday, the Nepal Bankers Association, Development Bankers Association Nepal, Nepal Finance Companies Association, and Nepal Microfinance Bankers Association jointly issued a statement protesting the action.

The statement reads, 'Section 57 of the Banks and Financial Institutions Act, 2073, gives banks special authority for recovery in case of loan non-payment. Loan recovery falls within the primary process of the bank and the main responsibility of the Chief Executive Officer.' The associations believe that arresting the bank's leadership for loan recovery will damage the bank's reputation and affect financial stability.

The representative organizations of the banking sector have urged to embrace the principle of 'gold and lock up' and have demanded that the relevant bodies proceed with the investigation process by keeping Pandey outside of custody as soon as possible.