Kathmandu, May 14: Four major umbrella organizations in Nepal’s banking sector have expressed serious objection to the police detention of Jyoti Prakash Pandey, the Chief Executive Officer (CEO) of Nepal Investment Mega Bank Limited.
The Nepal Bankers’ Association, Development Bankers Association Nepal, Nepal Financial Institutions Association, and Nepal Microfinance Bankers Association issued a joint press release stating that they have taken serious note of Pandey’s arrest. The Central Investigation Bureau (CIB) of Nepal Police took Pandey into custody on Baisakh 30.
The statement noted that banks and financial institutions operate in accordance with prevailing laws and directives issued by Nepal Rastra Bank. The organizations argued that Section 57 of the Bank and Financial Institutions Act (BAFIA), 2073 grants banks special authority in cases where loans are not recovered, and carrying out such recovery is one of the CEO’s primary responsibilities.
“The arrest of the chief executive officer of an institution like a bank, which operates on public trust by mobilizing deposits from the general public, solely for carrying out loan recovery could damage the bank’s reputation and even affect financial stability,” the statement said.
The banking organizations have urged authorities to adopt the principle of “listen first, then take action” and appealed to the concerned agencies to release Pandey from custody immediately while allowing the investigation process to continue. They have also demanded that, considering the dignity of the bank and the status of its senior officials, keeping him in detention during the investigation should not be necessary.
People’s News Monitoring Service.
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