19th September 2025, Kathmandu
Roshan Kumar Neupane, the Chief Executive Officer (CEO) of NIC Asia Bank, has resigned from his position
NIC Asia CEO Resigns
Roshan Kumar Neupane, the Chief Executive Officer (CEO) of NIC Asia Bank, has resigned from his position, more than a year before his term was set to expire. The bank’s Board of Directors has appointed Santosh Kumar Rathi, the Deputy CEO, as the acting Chief Executive Officer.
Reasons Behind the Resignation
While the bank’s official statement cited a personal choice as the reason for Neupane’s early departure, multiple reports from industry sources and media outlets suggest a different, more complex narrative. Neupane’s resignation is believed to be linked to a number of significant financial and operational issues that arose during his leadership.
Deteriorating Financial Health: Reports indicate that the bank’s financial indicators had been worsening. One source claims the bank’s net profit dropped significantly by over 90% in the second quarter of the fiscal year 2024/25, a stark contrast to a period when most other banks were seeing their profits increase.
Rising Non-Performing Loans (NPLs): A key factor contributing to the bank’s financial struggles was a sharp increase in its non-performing loan (NPL) ratio. This indicates that a growing portion of the loans issued by the bank were not being repaid, which directly impacts profitability and financial stability.
Regulatory Scrutiny: Under Neupane’s tenure, NIC Asia Bank reportedly received multiple regulatory warnings from the Nepal Rastra Bank (NRB). These warnings were allegedly due to non-compliance with central bank directives regarding loan classification, capital adequacy, and interest rates.
Allegations of Reckless Lending: Neupane’s period as CEO was marked by an aggressive expansion strategy, which, according to some reports, led to reckless lending practices. These practices are believed to have contributed to the rise in bad loans and the bank’s overall financial difficulties.
It is speculated that facing these mounting challenges and regulatory pressures, Neupane decided to step down.
Leadership Transition and Outlook
The bank’s board acted swiftly to ensure a smooth leadership transition by appointing Santosh Kumar Rathi as the Acting CEO. Rathi is a seasoned banking professional with a strong background in credit operations and risk management, which is a critical area of focus given the bank’s recent challenges with non-performing loans. The board has assured customers and investors that the bank’s daily operations will not be disrupted and that it remains financially stable.
Neupane’s legacy at NIC Asia is twofold
He is credited with pioneering aggressive market expansion and digital innovation, which helped the bank become a market leader. However, his tenure also highlights the risks associated with rapid growth without a corresponding focus on asset quality and regulatory compliance. The new acting CEO, Santosh Kumar Rathi, and the senior management team are expected to focus on maintaining stability and addressing the financial and operational issues that led to Neupane’s departure. The bank’s commitment to finding a permanent CEO soon and its assurances of financial stability are aimed at restoring confidence among all stakeholders.
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