The central bank suspended the current NCC board of directors and sent a three-member management team led by NRB Director Laxmi Prapanna Niraula which has been authorised to use the rights of the board. Other members of the management team are NRB deputy director Ramesh Acharya and assistant director Resham Raj Regmi.

After the central bank’s board on Tuesday decided to take over the bank whose daily operation had been affected badly as the bank’s board meeting could not take place since last three months due to dispute between two sides- one led by NB Group and another led by Nirmal Pradhan.

Earlier, the central bank had taken over the management of Bank of Kathmandu over the board room battle. It is the second time that the central bank took over the management of the bank promoted by NB Group. Earlier, the central bank had taken over the management of Nepal Bangladesh Bank promoted by the same group in 2006.

The NRB has given five-point mandates to the new management team which includes—conducting due diligence report, holding annual general meeting and handing over the management to new board of directors and raising capital  of the bank to Rs. 2 billion either through merger or other means within the current fiscal year.

The team has also been told to recover the loans that went to the promoters and recover other loans that went to risky area through legal procedures.