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Banks sell machinery to recover loans

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News item 10-6-2010

Commercial banks which have invested millions of rupees in various factories have been selling their machinery at scrap value to recover their loans after the promoters fled.
More than three dozen large scale industries along the Sunsari-Morang Industrial Corridor have been shut down in the last decade. Banks in Biratnagar have invested over Rs. 4 billion in these industries. Now they have started to sell the equipment and other assets at scrap value to recover their investment.
In the last decade, Ashok Textiles, Shivalaya Metal, Shangrila Apparels, JD Apparels, Star Board, Arun Steel, Star Textile, Ganapati Cotton Mill and others have been closed.
Most of the private banks have invested in machinery while Nepal Bank Limited and Rastriya Banijya Bank financed the land and buildings of these industries.
Nepal SBI Bank that has loaned Rs. 60 million for the machinery of Ashok Textiles Industries has started to sell it to get its money back. .........


Read more about banks taking action to recover loans

 

Other banking news and articles:

80 percent bank loans go to the private sector (07-08-2010)

New Plans Of Tourism Development Bank (14-03-2010)

Sunrise Bank Ltd announces it will issue new shares (09-03-2010)

Siddhartha Bank opens new branch (29-01-2010)

NMB Bank rejects near to 5000 applications for shares of the Sunrise Bank (10-07-2009)

Change in Board of Directors of NMB bank ltd (09-04-2009)

 

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