The catastrophic floods triggered by the Bhote Koshi river in Nepal have unleashed unprecedented destruction upon the banking infrastructure in the Rasuwa and Nuwakot districts. According to the latest reports from the region, 17 branches belonging to 11 different commercial banks have been completely decimated by the surging floodwaters. This natural disaster has not only resulted in the total loss of physical bank buildings but has also raised grave concerns regarding the safety of cash, gold, silver, and vital financial documents that were stored within these premises.
Financial Exposure and Account Statistics
The scale of the financial impact in these affected branches is immense, while official data indicates that these 17 branches held total deposits amounting to 43 billion 500 million Nepalese Rupees. Also, the outstanding loans disbursed through these specific locations stood at 24 billion 200 million Nepalese Rupees. In terms of customer reach, there were 73,275 active deposit accounts and 2,125 loan accounts associated with these branches. It's important to clarify that while the deposit figure represents the total liability towards customers, it doesn't mean that the entire 43 billion 500 million NPR in physical cash was present at the sites during the flood. The actual loss of physical currency and assets is currently being evaluated by the respective financial institutions.
Impact on Hydroelectric Projects
The floods have also caused significant damage to several hydroelectric projects in Rasuwa and surrounding areas. These projects represent a major investment sector for Nepalese banks. However, because these large-scale loans are typically managed through consortium lending involving multiple banks and are approved by the central offices, these investments aren't reflected in the local branch-level deposit and loan statistics. Despite this, the damage to these projects adds another layer of financial strain on the banking sector's overall portfolio in the region.
Missing Bank Employees and Search Efforts
The human cost of the disaster is particularly distressing, while as of Saturday evening, contact couldn't be established with 35 banking employees. This group includes 27 employees from commercial banks, 6 from microfinance institutions, and 2 employees who were in the area for official tours. Since Thursday, banks and financial institutions have been sharing photographs and identification details of these missing individuals on social media platforms, seeking any information that could lead to their rescue or recovery. The primary focus of the banks remains the safety and location of their staff members.
The Incident of the Washed Away Vaults
In the areas of Timure and Syaphrubensi in Rasuwa, the force of the water was so great that entire bank branches were swept away, including their heavy steel vaults. Reports surfaced on social media claiming that two bank vaults were discovered in Galchhi, though district administration and police have yet to officially confirm these specific finds, while according to some bank officials, one of the missing vaults contained approximately 125 million Nepalese Rupees in cash. There were also reports of individuals attempting to break open the vaults to retrieve the money, while consequently, the police arrested 29 individuals on charges of extracting money from a bank vault that had washed into the Trishuli River. Authorities recovered 9,268,505 Nepalese Rupees from these individuals. All suspects have been taken to the regional police office in Gajuri for further investigation.
Official Response from Nepal Rastra Bank
Nepal Rastra Bank (NRB), the central bank of the country, has formally requested all banks and financial institutions to provide comprehensive details regarding missing employees and the extent of property damage, while guru Prasad Poudel, the spokesperson for Nepal Rastra Bank, stated that the assessment of human, economic, and physical losses has commenced. He mentioned that a complete and public-ready dataset of the total loss has not yet been finalized. Currently, preliminary estimates are being calculated based on the cash, assets, deposits, and loans present at the branches before the disaster. Similarly, Santosh Koirala, President of the Nepal Bankers Association, confirmed that they've asked affected banks for detailed reports, including losses related to gold, silver, and damaged hydroelectric projects. A full report is expected to be compiled by Monday.