Nepal Bank LTD in loss after Janakpur cigarette factory closed

Janakpur, June 12: Janakpur based Nepal Bank Limited (NBL) is in loss after one of the oldest industry of the country, the Janakpur Cigarette Factory was closed.

The government had established the bank in the premises of the factory in 2022 BS in view of providing financial services to the industry. The bank has now been running in cent per cent loss for the last two years.

The bank had invested Rs. 290 million in the factory. The bank is to receive Rs. 360 million including Rs. 70 million interest from the industry and that it has gone on heavy loss when the industry could not return the money, Siyaram Yadav, Branch Manager of the Bank told RSS.

The bank, established to make financial transaction of the factory had managed salary, allowances of the staff, and loan disbursement, among other works from the branch.

The cigarette industry has started transaction from Everest Bank and Nepal Bangladesh Bank without clearing the loans and that the bank is in loss, said the employees in the NBL.

The government that has been paying Rs. 80 million without any production is now going to close the factory for it has to pay 745 staffs in a condition when the industry was not bringing its products in the market. RSS