Police have arrested former ex-CEO of KIST Bank, Mr. Kamal Prasad Gyawali on Friday morning from Mahendranagar. Gyawali had been absconding since 2015, after Patan High Court found him guilty of indulging in ‘fraudulent banking practices’.
He is expected to be presented before court today itself.
Coming from a ‘middle-class’ family in Gulmi, Mr. Gyawali shot to fame within no time within the banking industry of Nepal; his downfall too did not take much time.
In 2002, he started KIST Merchant Banking & Finance, in 2009, KIST touted its success by transforming into a Class ‘A’ bank of Nepal.
In 2013, Gyawali was detained on ‘banking fraud charges’ along with his wife Gauri Khanal Gyawali. An investigation established by NRB established that Gyawali had taken out a loan of a NRS 130 million with an ‘under-valued’ property as collateral.
In 2015, he was found guilty by Patan High Court and ordered to serve a 4 year jail term along with an NRS 50 million fine.
He had been absconding since.
KIST underwent a merger in 2016, and is now Prabhu Bank.