Nepal Rastra Bank (NRB) has taken action against three commercial banks that violated the regulatory norms in the last fiscal year.

The central bank has slapped cash penalties to Kumari Bank and Himalayan Bank for not maintaining the 90 percent credit-to-deposit ratio (CD ratio) as per the regulatory norms. 

Kumari Bank was slapped with a cash penalty of Rs 5.96m on non-compliance of the CD ratio in January of the last fiscal year.

Similarly, Himalayan Bank has been slapped with a cash penalty of Rs 13.9m for not meeting the CD ratio in October of the last fiscal year.

The central bank has cautioned the Prime Commercial Bank. According to the NRB officials, the bank has been found to be non-compliant with the loan loss provision. The bank has also been found calculating risk-weighted assets below the actual value and charging interest by increasing the premium rate contrary to the provision of section 100 of the Unified Directives 2079 BS.