Kathmandu. Roshan Kumar Neupane, the chief executive director (CEO) of NIC Asia Bank, has resigned from his post on September 17. He left the bank a year before the end of his second term.

He was appointed as the CEO of the bank from November 1, 2079 BS and was re-appointed for the second term on Kartik 1, 2079. He resigned on Wednesday with one year left to complete his second term. Although the bank had made good progress in the initial years of Neupane’s leadership, most of the bank’s indices have been declining in recent years.

The bank’s financial indicators have been declining for some time now. The reason for the decline in a bank’s financial indicators is directly or indirectly linked to the CEO. According to the bank’s financial statements, the bank’s profit, earnings per share, net worth per share and dividend capacity have also been declining in recent years.

Compared to the previous fiscal year, the indicators including bad loans of the bank are also increasing. This indicates that the risk of credit to the bank is increasing. The non-audit report of the bank shows that the bank, which had been distributing dividends in the past, is unable to distribute dividends to its investors from the profit of the last financial year. In the last financial year, the bank’s earnings per share was only Rs 1.40.

When Neupane was appointed as CEO, the bank’s earnings per share was Rs 34.31. When Neupane was appointed for the second term, the earnings per share had increased to Rs 39.13. In the last three years, the bank’s income has decreased significantly.

The net worth per share of the bank is also declining. When Neupane was appointed as the CEO of the bank, the net worth per share was Rs 149.93. Presently, the net worth per share of the bank stands at Rs 199.30. When Neupane was appointed for the second term, the bank had a net profit of Rs 217.52 per share.

In the last fiscal year 2081/82, the bank had collected deposit of Rs 294 billion. The bank had collected deposit of Rs 169.43 billion when Neupane was appointed as the CEO of the bank. Neupane had collected deposit of Rs 289.49 billion during his second term in office.

The bank’s deposits have improved slightly in the last 3 years. The bank had invested Rs 140.52 billion in loans seven years ago and Rs 233.43 billion in the last fiscal year. The bank had invested Rs 252.44 billion in loan when Neupane was appointed to the bank for the second term.

The bank has earned a profit of Rs 75.78 crore in the year Neupane was appointed for the second term, while the bank has been able to earn a profit of Rs 4.52 billion by the time he was appointed for the second term. The bank has earned a net profit of Rs 31.93 crore in the first quarter of the current FY. The bank’s profit seems to be declining after Neupane’s second term.

During this period, the bank’s paid-up capital has increased. The bank has been able to increase its paid-up capital by distributing bonus shares. In the fiscal year 2079/80, the bank had issued 29% bonus shares to its investors. The bank’s dividend is high when it pays dividend for 3 years at a time.

The bank had distributed 21 percent dividend in the year Neupane was appointed as the CEO of the bank. The bank distributed 11 percent cash dividend and 10 percent bonus shares to its shareholders. Although the bank distributed dividend for the next few years, the bank could not distribute dividend for the next 2 fiscal years due to insufficient capital fund.

Presently, the bank has a paid-up capital of Rs 14.91 billion. The bank’s paid-up capital stood at Rs 8 billion in the year Neupane was appointed as the CEO. When Neupane assumed his second term, the paid-up capital had reached Rs 11.56 billion.

The bank’s bad loans have increased exponentially in the last 3 years. The bank’s bad loans have increased at the highest rate in the last fiscal year (2080/81) compared to the fourth quarter of the fiscal year 2078/79. In the fourth quarter of the fiscal year 2078/79, the bank’s bad loan was only 0.49 percent, which increased to 1.92 percent in the last fiscal year. In the fiscal year 2075/76 BS, the bank’s NPA stood at 0.26 percent. The bank’s bad loans are increasing every year.

At one time, the bank had issued loans indiscriminately. The bank is now facing problems as it has not been repaid. The bank has been issuing auction notices almost every day as it has not been able to raise the loan. However, the auction has not been sold. Non-banking assets are increasing due to the failure of banks to sell the auctioned property.