Kathmandu - Nepal Police’s Central Investigation Bureau (CIB) has arrested Prabhu Bank Chief Executive Officer (CEO) Ashok Sherchan in connection with an ongoing investigation into alleged loan misappropriation involving the bank’s former leadership.
According to the CIB, a team from the bureau detained Sherchan on Sunday as part of the investigation linked to former Prabhu Bank chairman Devi Prakash Bhattachan. The bureau has been investigating Bhattachan over suspected irregularities in a large corporate loan issued to Prabhu Management Pvt. Ltd., a company associated with the bank’s former chair and director Kusum Lama.
Earlier on Kartik 22, the CIB raided the bank’s central office at Bijulibazar, seizing key documents believed to be connected to the investigation.
Bhattachan was taken into police custody on Kartik 11 following a complaint filed by Prabhu Management Chairperson Kusum Lama, who alleged a fraud of Rs 980 million. Authorities are examining nearly Rs 1 billion in loans issued to the company, which they suspect were misused.
The CIB has also arrested Prabhu Bank Deputy CEO Mani Ram Pokhrel. He was taken into custody on Sunday from the bank’s central office in Anamnagar.
Similarly, the bureau detained Chief Risk Officer Rivas Shrestha, who had served as a credit officer for a long time. Meanwhile, Chief Business Officer Rashmi Pant has been on leave for the past week.
The arrest of CEO Sherchan marks a significant escalation in the case, which has put Prabhu Bank’s senior management under intense scrutiny as the investigation progresses.
