KATHMANDU: Three senior officials of Prabhu Bank, including CEO Ashok Sherchan, have been arrested in connection with violations under the Banking Offense and Punishment Act.
The Central Investigation Bureau (CIB) of Nepal Police, with approval from the Patan High Court, took them into custody from Kathmandu on Sunday.
CIB spokesperson SSP Shiva Kumar Shrestha stated that the investigation into fraud, criminal breach of trust, and violations of the Nepal Rastra Bank Act confirmed the involvement of the bank’s top management.
The probe revealed that the officials acted against directives from the central bank and misused millions of rupees through various companies, causing significant losses to the bank, CIB added.
The arrested include CEO Ashok Sherchan from Kalika–5, Baglung; Deputy CEO Mani Ram Pokharel from Palungtar–2, Gorkha; and Chief Credit Officer Rivas Shrestha from Itahari–4, Sunsari.
CIB has said that further investigations are ongoing.
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