NRB Lifts Prompt Corrective Action Against Pokhara Finance Following Merger Approval

Kathmandu: Nepal Rastra Bank (NRB) has lifted the Prompt Corrective Action (PCA) imposed on Pokhara Finance Limited after approving its merger with Samriddhi Finance Company Limited and reviewing the combined institution's improved capital position.

According to a notice issued by the central bank, Pokhara Finance had been placed under Prompt Corrective Action under the Prompt Corrective Action Bylaw for Banks and Financial Institutions, 2017 after supervisory assessments found that its capital adequacy ratio had fallen significantly below the minimum regulatory requirement.

The decision was based on the institution's consolidated on-site inspection report prepared using its unaudited financial statements as of mid-January 2024 (Poush-end 2080), along with off-site supervisory reports for the first quarter of fiscal year 2024/25. After supervisory adjustments, the finance company was found to have a capital adequacy ratio well below the minimum level prescribed by Nepal Rastra Bank.

NRB had formally imposed the corrective measures through a letter dated February 5, 2025 (Magh 23, 2081 BS).

The central bank stated that the final approval for the merger between Pokhara Finance Limited and Samriddhi Finance Company Limited was granted by its committee on April 30, 2026 (Baisakh 17, 2083 BS).

Based on the merged institution's unaudited financial statements as of mid-May 2026 (Baisakh-end 2083), the combined entity is projected to maintain a Core Capital Ratio (Tier 1) of 6.06 percent and an overall Capital Adequacy Ratio (CAR) of 10.80 percent.

Considering the improved financial position of the merged institution, the committee, through its decision dated June 24, 2026 (Ashadh 10, 2083 BS), decided to withdraw the Prompt Corrective Action imposed under Clause (c) of Regulation 3 of the Prompt Corrective Action Bylaw.

The withdrawal will take effect from the date the merged institution officially begins integrated operations with Samriddhi Finance Company Limited.

Nepal Rastra Bank said the decision reflects the improved regulatory capital position of the merged institution following the completion of the merger process.