Kathmandu. The final report of the Loan Portfolio Review (LPR) of Nepal’s top 10 commercial banks is likely to come next week.
Nepal Rastra Bank (NRB), through a notice last year, had called on interested foreign auditors to submit letters of intent for Nepal’s commercial banks (LPRs). The Nepal Rastra Bank (NRB) has selected Bangladesh’s Hauldar Yunus Company as the foreign auditors who submitted the letter of intent to do so.
Spokesperson of the central bank, Guru Prasad Poudel, said that the hauldar Yunus Company has signed an agreement with Nepal Rastra Bank and 10 commercial banks. “The Bangladeshi company was given five months to submit the final report. The report will probably come out next week. ’
The Nepal Rastra Bank (NRB) has spent Rs 6,254,912.5 to international auditor Yunus Company for the LPR of 10 big commercial banks.
Nepal Rastra Bank (NRB) has initiated the process of auditing 10 big banks that have issued large loans in accordance with the International Monetary Fund (IMF) conditions. The government of Nepal and Nepal Rastra Bank had pledged to conduct audit of 10 big banks by international auditors while availing extended loan facility from the IMF. The IMF had set this condition for the provision of $ 395 million under the Extended Loan Facility (ECF).
The IMF has called for an urgent review of the loan portfolios of the 10 largest banks, saying that there is a need to monitor the increasing bad loans and lack of capital in the banks. The IMF had also suggested amending the NRB Act and giving priority to external audit.
