Nepal Rastra Bank (NRB) has officially lifted the Prompt Corrective Action (PCA) imposed on Pokhara Finance Limited, citing significant improvements in the institution's financial health following its merger with Samriddhi Finance Company Limited.

In a public notice, the central bank stated that the regulatory action, imposed under Clause (g) of Regulation 3 of the Prompt Corrective Action Regulations, 2017, has been withdrawn after the merged institution met the required capital adequacy standards.

The PCA was initially enforced on Magh 23, 2081 (February 2025) after NRB's on-site inspection and supervisory review of Pokhara Finance's financial statements up to mid-January 2024 and the first-quarter reports of FY 2024/25 revealed that the company's Capital Adequacy Ratio (CAR) had fallen significantly below the minimum regulatory requirement.

To strengthen its financial position, Pokhara Finance initiated a merger with Samriddhi Finance Company Limited, a proposal that received final approval from the regulatory committee on Baisakh 17, 2083.

According to the central bank, the combined institution's unaudited financial statements as of the end of Baisakh 2083 show a Tier-1 Capital Ratio of 6.06% and a Total Capital Adequacy Ratio of 10.80%, bringing it within the regulatory framework.

Based on these improvements, Nepal Rastra Bank decided on Asar 10, 2083 to revoke the Prompt Corrective Action effective from the date the merged institution officially begins integrated operations.

The move reflects the central bank's confidence in the merged entity's improved financial stability and its ability to operate under normal regulatory supervision.