Over the past month, depositors have withdrawn a significant amount of 14 billion rupees from NIC Asia Bank. According to the deposit statement provided by the Nepal Bankers Association, NIC Asia held 3 trillion 81 billion 40 crore rupees in January. However, by the end of January, this figure had decreased to 3 trillion 67 billion 68 million.
While deposits in the commercial banking sector saw an increase of approximately 12 billion rupees, NIC Asia experienced a decline. Total deposits across banks amounted to 54 trillion 29 billion 69 billion rupees in January. However, this figure rose to 54 trillion 41 billion 26 million rupees by the end of the month.
Various rumors circulating about NIC Asia, along with public comments in the media and certain bank activities, have adversely affected customer confidence in the bank. If these misleading activities persist, it appears there may be even greater repercussions in the future. Particularly concerning are issues highlighted in the second-quarter financial statement of the current fiscal year, including requests to close branches by the Central Bank, the resignation of Deputy Chief Executive Officer Sudhir Nath Pandey, and the bank's categorical denials, which have all contributed to tarnishing its reputation.
The Central Bank has directed NIC Asia Bank to close at least 50 branches due to insufficient business activity. The bank finds itself in a challenging position as depositors, influenced by propaganda in favor of withdrawals, have become increasingly uncertain.
Despite an overall increase in deposits since the beginning of the year, NIC Asia's deposits have experienced a decline for the first time in 7 months. Meanwhile, NIC Asia's investments totaled 2 trillion 68 billion 64 billion rupees until July and reached 2 trillion 98 billion 43 billion rupees by January. Loan investments in January amounted to 3 trillion 2 billion 66 billion rupees. Previously, in October, loans amounted to 3 trillion 3 billion 41 crore rupees but decreased to 3 trillion 19 crore rupees in October and November.