Karnali Development Bank to Refund Depositors' Savings

Karnali Development Bank, declared troubled by Nepal Rastra Bank (NRB), is set to start refunding depositors' savings from Tuesday.

In the first phase, the bank will return funds to savings account holders, while fixed deposit holders will receive their payments in the final phase. The bank, which operates branches in Banke, Bardiya, and Dang, has approximately 50,000 depositors with savings totaling NPR 5.5 billion and loans worth NPR 3 billion.

Meanwhile, the Nepal Stock Exchange (NEPSE) has indefinitely suspended trading of the bank's shares, citing the NRB's takeover and the need to protect investors' interests. However, some shareholders have expressed dissatisfaction, claiming the decision infringes on their rights, and are reportedly preparing to take legal action.