Nepal Rastra Bank (NRB) Governor Dr Bishwanath Poudel has declared ownership of 244,176 units of founder shares in Sanima Bank Limited, valued at Rs 24.4 million, as part of his publicly released asset disclosure on Wednesday.

The revelation has raised concerns among stakeholders over a possible conflict of interest, as the central bank is the regulatory authority for commercial banks, including Sanima Bank.

Some experts pointed out that owning shares in an institution he is responsible for regulating could lead to questions of impartiality. However, an NRB official told New Business Age that the shares were acquired before Poudel assumed the governorship and represent less than 1 percent ownership, which, according to the official, does not fall under the legal definition of a conflict of interest.

The Nepal Rastra Bank Act contains specific provisions aimed at preventing conflicts of interest among members of the central bank’s Board of Directors. Section 32 of the Act mandates that the governor, deputy governors, and board members must disclose any direct or indirect business interest held by themselves or their family members every six months.

Furthermore, if any proposal involving their personal interest is to be discussed at a board meeting, they must inform the board in advance.

"Now the governor can avoid questioning on issues related to Sanima Bank, as per the NRB Act," a former senior NRB official said. The Act also bars anyone holding 5 percent or more shares—or voting rights—in a commercial bank or financial institution from serving as a board member of the central bank, as per Section 21.

Governor Poudel disclosed his property details within a month of assuming office, as required by the law. The disclosure shows that he and his family own real estate in Lalitpur and Nawalparasi, shares in seven companies, approximately 45 tolas of gold, diamonds worth Rs 1.5 million, and over Rs 2.1 million in bank deposits, including USD 4,500.

Poudel’s wife, Pratibha, owns a house on 5 aana 2 dam of land in Bhaisepati, Lalitpur, with a 2,795 sq. ft. building purchased for Rs 15.5 million. She also owns property in Gaindakot, Nawalparasi, worth Rs 6 million. The assets are recorded as acquired through inheritance and personal earnings.

Governor Poudel also declared investments in seven companies held under his and his wife’s names, and listed a Suzuki car owned by his wife in the disclosure.