Banking Khabar / The government’s growing intervention in appointments within Nepal’s banking sector has become increasingly evident, as chief executive officers (CEOs) of all three state-owned banks are reportedly preparing to resign following mounting pressure from the Ministry of Finance.
For months, many believed the government would refrain from interfering in banking-sector appointments, especially after the recently introduced ordinance on revoking political appointments excluded the banking sector. However, recent developments have overturned that assumption.
According to sources, the Ministry of Finance has begun actively recalling politically appointed officials from state-owned financial institutions. Following direct instructions from the ministry, the chairpersons of all three government-owned banks have already stepped down, while CEOs are now said to be making final preparations to tender their resignations.
The affected institutions include Agricultural Development Bank, Rastriya Banijya Bank, and Nepal Bank Limited.
Officials who had initially felt secure after the banking sector was omitted from the government’s ordinance on revoking appointments were reportedly caught off guard after being summoned to the Finance Ministry and urged to resign. The ministry is said to have informed senior executives that stepping down would help “facilitate” the government’s broader administrative plans.
Sources say it is now only a matter of time before the CEOs of all three banks formally submit their resignations.
The government’s campaign is also expected to extend beyond state-owned banks. After replacing officials in public financial institutions, the administration is reportedly preparing to target Nepal’s central bank, including three board directors and even the governor.
Officials close to the matter claim the government intends to remove individuals appointed under previous political leaderships and replace them with what it describes as “independent” figures across various state institutions. Preparations are reportedly underway to revoke the governor’s appointment as well.
Earlier, the politically appointed chairpersons of the three state-owned banks had already resigned. Those stepping down include Dimp Prasad Paudel of Agricultural Development Bank, Dev Kumar Dhakal of Rastriya Banijya Bank, and Professor Dr. Dilli Raj Sharma of Nepal Bank Limited.
According to reports, the Ministry of Finance summoned all three chairpersons individually and requested their resignations in the interest of supporting the government. Their departure has since heightened uncertainty among senior executives in the state banking sector, with pressure now shifting toward the CEOs.
