Himal Press 
KATHMANDU: Four major associations representing banks and financial institutions have strongly opposed the arrest of Nepal Investment Mega Bank (NIMB) CEO Jyoti Prakash Pandey.
In a joint statement issued on Thursday, the Nepal Bankers’ Association, Development Bankers Association Nepal, Nepal Financial Institutions Association, and Nepal Microfinance Bankers Association expressed serious concern over Pandey’s arrest.
The Central Investigation Bureau (CIB) of Nepal Police arrested Pandey on Wednesday in connection with the auction of collateral pledged to the bank by Smart Telecom.
Citing Section 57 of the Bank and Financial Institutions Act, 2017, the associations claimed that banks are legally empowered to recover unpaid loans, including through the auction of collateral. They added that recovering bad loans is a core responsibility of both banks and their chief executives.
“Arresting a CEO for carrying out loan recovery could damage public trust in banks and weaken institutional stability,” the joint statement said.
The associations also urged authorities to act with sensitivity, taking into account the reputation of the banking sector and the dignity of the CEO’s position. “If investigation is required, we request that it be carried out without detention, in line with the principle of ‘hear first, then detain’,” the statement added.
