People's Finance closed
All branches of People's Finance Company including the head office have closed from Monday as the company could not reimburse its depositors.
The finance company was closed issuing a notice on Monday. The notice said, the company cannot open due to technical reasons.
Company offices were closed as it did not have enough liquidity to reimburse its depositors.
The company fell into extreme financial crisis after an institutional depositor, Nepal Rastra Bank (NRB), withdrew Rs 70 million deposited in fixed account last week.
The company, with a paid-up capital of about Rs 280 million, has issued loans almost worth Rs 1 billion. Most of the investment is in real estate sector.
NRB has initiated probe into the financial crisis of the bank. The promoter of the company is absconding.
51 percent share of the company is owned by the promoter, while 49 percent is owned by public