Governor Adhikari Clarifies: 'Blaming NRB for Dividend Issues Is Baseless'

Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, has refuted banks' allegations that they are unable to distribute dividends due to NRB policies. Speaking at the annual general meeting of the Nepal Bankers' Association, he stated that such accusations are unfounded.

"The claim that dividends cannot be distributed because of Nepal Rastra Bank is just an allegation. Banks can distribute dividends based on their own capacity," said Governor Adhikari. He emphasized that despite various challenges in the financial sector, NRB has successfully maintained financial stability.

According to the Governor, external factors impacting the banking sector are currently being observed, but financial indicators remain positive. "There is ample liquidity, and financial indicators are strong. There is no need to panic," he reassured.

Expressing concern over the rising volume of non-performing loans (NPLs), Governor Adhikari urged banks to focus on loan recovery. He highlighted that misinterpretations about bank profits and anti-bank narratives have created obstacles in loan recovery efforts.

Governor Adhikari further clarified that NRB's policies are not causing any issues in the banking sector and assured that the central bank is actively working to address challenges, particularly those posed by external threats to the banking system.