Biratnagar: A major financial irregularity has surfaced at a Citizens Bank branch in Biratnagar, where an employee is accused of misappropriating around Rs 50 million belonging to depositors. The alleged fraud took place at the Rajbanshi Chowk branch in Ward No. 4, with the branch’s operations in charge, Roji Kandel, identified as the main suspect.
According to preliminary findings, the employee manipulated customer deposits by using them as collateral to create fake loan files, allowing the funds to be siphoned off. The bank has suspended nine staff members from the branch and handed the case over to the police for further investigation. Kandel has already been dismissed from her position.
Chief Executive Officer Ganesh Raj Pokharel said disciplinary action will be taken against all involved based on the outcome of the investigation, noting that some of the suspended employees have already resigned. Although Kandel had initially pledged to return the embezzled amount within 15 days, she failed to do so, prompting the bank to escalate the matter to law enforcement—bringing the case into public view.
The fraud was uncovered during an internal audit conducted about two months ago, which revealed significant misuse of depositor funds by bank staff. Following the discovery, the bank launched its own inquiry before recommending a formal police investigation.
Morang Police Chief SP Kabit Katuwal confirmed that a complaint has been filed regarding the embezzlement of approximately Rs 49.1 million, and an investigation is underway. He said further details will emerge once suspects are taken into custody and questioned.
The bank’s internal probe found that Kandel had used her personal access credentials to carry out unauthorized transactions involving fixed deposits. Based on this, several employees were suspended, although the CEO clarified that not all of them may be directly involved.
The bank also stated that four employees suspected of involvement in the case have already submitted their resignations. A team, including chartered accountants from the bank’s central office, had been dispatched to investigate the matter. While Kandel provided a written commitment requesting time to repay the funds, the bank proceeded with legal action after she failed to meet the deadline.
Investigations suggest that the fraudulent scheme involved using customers’ fixed deposits as collateral to fabricate loan documents and withdraw funds. The bank had identified the irregularities during its internal audit and has since moved forward with a full-scale investigation in coordination with the police.
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