Kathmandu, February 2
The central bank has fined Nepal Bangladesh Bank for its failure to meet the target set for investment in the agricultural sector.
The regulatory bank requires every commercial bank to invest at least 25 per cent of its total loan amount in the sectors that it has identified as priority areas. According to the rule, at least 10 per cent of the total loan should be given to the agricultural sector.
But, the NB Bank’s investment in the sector in the last fiscal year 2018/19 is less than nine per cent of the total loan amount. Hence, it paid back an amount equal to the interest of the insufficient amount.
Meanwhile, the bank has said it has increased its investment in all priority sectors this year, assuring it will not be fined again. “In the first five months, our investment amount has cross 10 per cent mark in agriculture,” says the bank’s spokesperson Suresh Devkota.
