Red flag about Corporate Development Bank (CORBL)

As a concerned citizen of Nepal, I wish to bring attention to certain aspects of Corporate Development Bank (CORBL) that merit careful consideration. While I am not providing financial advice or acting as an investor, I believe these concerns deserve further scrutiny.

1) Allegations Against Board Members:

Some members of CORBL’s board, notably the Ansari brothers, face troubling accusations. The composition of the board, primarily consisting of family and friends, raises questions about the following issues:

a. Tax Evasion: Basruddin Ansari is alleged to have evaded a substantial amount, approximately 90 million NRS, in taxes. This prompts concerns about ethical conduct and financial transparency.

b. Underworld Connections: Basruddin Ansari’s alleged ties to Dawood Ibrahim intensify worries about potential involvement in illegal activities, posing a risk to the bank’s reputation.

Sources:

[https://myrepublica.nagariknetwork.com/news/umls-birgunj-mayoral-candidate-evaded-rs-90m-in-taxes/](https://myrepublica.nagariknetwork.com/news/umls-birgunj-mayoral-candidate-evaded-rs-90m-in-taxes/)

[https://www.hindustantimes.com/world-news/alleged-dawood-ibrahim-aide-in-nepal-is-a-mayoral-candidate-in-town-near-indian-border/story-Z05iPp0TaIngmzPUTsZKUI.html](https://www.hindustantimes.com/world-news/alleged-dawood-ibrahim-aide-in-nepal-is-a-mayoral-candidate-in-town-near-indian-border/story-Z05iPp0TaIngmzPUTsZKUI.html)

2)Financial Red Flags:

Recent financial indicators of CORBL are disconcerting:

a. Net Loss: The bank incurred a net loss in the latest annual report, signaling financial instability and potential risks for investors.

b. Negative ROE: The negative Return on Equity reflects the bank’s struggle to generate returns for shareholders.

c. High NPL Ratio: An increasing non-performing loan ratio suggests challenges in recovering debts, raising concerns about potential loan defaults and jeopardizing financial stability.

Source: Financial report

3)Lacking Website and Limited Reach:

CORBL’s website raises concerns:

a. Outdated and Unprofessional: Even though the company is worth 186 crore(approx), the website exhibits poor design, broken links, outdated information, and a lack of transparency, casting doubt on professionalism and commitment to user experience.

b. Limited Reach: With only four branches concentrated in Birgunj, CORBL has a notably smaller footprint than other banks, potentially impeding growth and market penetration.

Source: [https://www.corporatebank.com.np/](https://www.corporatebank.com.np/)

While these issues do not conclusively prove wrongdoing, they collectively present a troubling image of CORBL. I encourage investors and stakeholders to conduct thorough research and seek professional advice before making any decisions.

Disclaimer: This report is for informational purposes only and does not constitute financial advice. It relies on publicly available information and does not claim to possess conclusive evidence for all allegations.


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