Kathmandu, May 15 -- The banking sector has been left alarmed following the arrest of Jyoti Prakash Pandey, chief executive officer of Nepal Investment Mega Bank (NIMB), with bankers arguing that executives are being placed under police custody even when loan recovery actions are carried out in accordance with the law.

Banking representatives say the development has triggered concern, as CEOs are being detained despite banks selling mortgaged assets legally to recover outstanding loans. The issue has prompted multiple meetings and discussions among banking bodies, umbrella organisations, and the Nepali business community, including the Federation of Nepalese Chambers of Commerce and Industry, indicating the level of concern within the se...