Kathmandu. Four major organizations of the banking sector have expressed serious concern over the police arrest of Jyoti Prakash Pandey, the Chief Executive Officer (CEO) of Nepal Investment Mega Bank.
Nepal Bankers’ Association, Development Bankers’ Association Nepal, Nepal Financial Institutions Association and Nepal Microfinance Bankers’ Association issued a joint press release today. The Central Investigation Bureau (CIB) of Nepal Police had arrested Pandey on May 13.
“The banks and financial institutions are governed by the prevailing acts and directives of Nepal Rastra Bank,” reads the statement. The organizations argue that Section 57 of the Bank and Financial Institutions Act (BAFIA), 2073 has given special powers to the bank in case of loan recovery and it is the main responsibility of the CEO to do so.
“Arresting the CEO of the bank for collecting deposits of the general public and recovering loans from institutions like banks that operate on public trust may lead to a decline in the bank’s reputation and jeopardize its financial stability,” reads the statement.
Banking associations have urged the authorities concerned to adopt the principle of ‘gold first and barn’ and to keep Pandey out of jail as soon as possible. Keeping in mind the dignity of the bank and the dignity of the high-ranking staff, they have demanded that they should not be kept in custody for investigation.
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