Share capital of 35 shareholders of troubled Karnali Development Bank reduced to 1 percent
The share capital of 35 shareholders of the troubled **Karnali Development Bank** has been reduced and limited to **1 percent**. The management group formed by **Nepal Rastra Bank** took this decision after an asset-liability assessment showed liabilities exceeding assets and found that capital had been paid illegally. The decision will be heard at the **High Court Tulsipur (Nepalgunj Bench)** on **Mangsir 9**.
Kathmandu — The share capital of 35 shareholders of the troubled Karnali Development Bank has been reduced to 1 percent. After an asset-liability assessment revealed that liabilities exceeded assets and that capital had been paid illegally, the management group formed by Nepal Rastra Bank limited their share capital to 1 percent.
According to the management group, the share ownership was reduced in accordance with Section 86 (E), Subsection (1), Clauses (F) and (G), and Section 86 (J) of the 'Nepal Rastra Bank Act, 2058'.
Before the decision is registered at the Company Registrar's Office, a hearing will be held at the High Court Tulsipur (Nepalgunj Bench) on Mangsir 9.