Patan Appellate Court orders NRB to stop action against NBBL

The Patan Appellate Court has issued a stay order to the Nepal Rastra Bank (NRB), directing it not to take action against the Nepal Bangladesh Bank Limited (NBBL).

Acting upon a petition filed by managing director of the NBBL Narendra Bhattarai, a single bench of Judge Keshav Prasad Mainali issued the stay order following a hearing, Wednesday.

The bench told the NRB not to order the NBBL to stop its activities. The bench also ordered the NRB governor to submit a written explanation, clarifying why it is trying to take action against the NB Group within 15 days.

The governor of NRB on Monday had endorsed a proposal declaring NBBL a troubled bank and forwarded it to a meeting of NRB Board of Directors planned for Wednesday for final approval.
According to sources, NBBL went to the Court after one of the responsible officers of the NRB leaked the information of proposed action against NBBL management.

Nepal Credit and Commerce Bank and NBBL are members of the NB Group.