NRB directs Himalayan Bank to elect directors based on proportion of shares

, December 25

Himalayan Bank Ltd (HBL) will now have to ensure that its board directors representing institutional are elected on the basis of the proportion of shares they hold in the financial institution.

Rastra Bank (), the and the sector regulator, has given 30 days’ to the bank to make this change.

Nepal Rastra Bank has issued a directive saying the bank should hold election of board directors within 30 days so that institutional shareholders, who hold the largest number of shares, can send their representatives to the board.

This directive, seen by The Himalayan Times, was issued by Nepal Rastra Bank Bank Supervision Department on Monday.

The latest central bank decision is expected to pave the way for a representative of Mutual Trading to enter the boardroom, as it is a fourth-largest institutional shareholder in the bank with 11.85 per cent stake.

Mutual Trading is solely owned by Prem Lata Khetan, wife of late Mohan Gopal Khetan and mother of Rajendra and CP (Chandra Prakash) Khetan. PP (Prem Prakash) Khetan — son of late Hari Gopal Khetan, who is the brother of late Mohan Gopal Khetan — used to represent Mutual Trading in the bank’s board till 2012. He stepped down that year following differences with other board members, according to sources.

Read the full article on The Himalayan Times.

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