Kathmandu – Trading of Karnali Development Bank shares has been halted after the Nepal Rastra Bank (NRB) declared the bank “troubled.” Following the declaration, Nepal Stock Exchange (NEPSE) announced the suspension of the bank’s share trading in the secondary market starting Thursday.

In line with the central bank’s decision, all transactions involving the bank’s shares, including those held by promoters, have been frozen. Prior to the suspension, the bank’s shares were trading at NPR 810 per unit.

The declaration was made under Section 86(b) of the Nepal Rastra Bank Act, 2058. The development bank, headquartered in Nepalgunj, Banke, has now come under the direct management of NRB as per Section 86(c) of the same act.

Further details regarding the resolution plan for the troubled bank are awaited.