Kathmandu— Ashok Sherchan has resigned from the post of Chief Executive Officer (CEO) of Prabhu Bank. He stepped down on Sunday after the bank’s board of directors lifted the suspension imposed on him earlier in connection with a banking offence investigation.
Sherchan had been arrested by the Central Investigation Bureau (CIB) of Nepal Police on charges related to banking irregularities, following which the Prabhu Bank board suspended him from his position. However, the Special Public Prosecutor’s Office later decided to release him on bail, citing insufficient evidence. Prior to that decision, the Patan High Court had granted a final extension to complete the statement process within five days. After the expiry of that deadline and in line with the court order, the prosecutor’s office approved his release on bail.
Prabhu Bank CEO Ashok Sherchan Released on Bail
The CIB has yet to submit its final investigation report to the Public Prosecutor’s Office. After Sherchan’s release on bail, the board lifted his suspension, following which he tendered his resignation as CEO.
A veteran banker with around three decades of experience in the financial sector, Sherchan previously served as CEO of Prabhu Finance and Prabhu Bikas Bank. He joined Prabhu Bank—formed after the merger of Prabhu Bikas Bank and Kist Bank—as Deputy CEO and was later promoted to CEO. During his tenure, Prabhu Bank expanded significantly through mergers with institutions including Grand Bank and Century Bank.
Suman Sharma Takes Charge
Following Sherchan’s resignation, the board of directors of Prabhu Bank appointed Suman Sharma as the new CEO. A board meeting held on Magh 20 decided to appoint Sharma for a four-year term, effective from the same day.
Sharma, a resident of Kageshwor Manohara Municipality-8 in Kathmandu, has more than 20 years of experience in the banking sector. He has previously served as CEO of Machhapuchhre Bank and the then Sunrise Bank, and as Deputy CEO of Global IME Bank. He began his banking career at Nepal SBI Bank.
The leadership change comes at a critical time for Prabhu Bank, which has been grappling with rising non-performing loans and weak shareholder returns. As of the second quarter of the current fiscal year, the bank’s non-performing loan ratio stands at 7.94 percent, and it has not distributed dividends for the past three fiscal years.
Sharma’s appointment is seen as a key step toward addressing these challenges and steering the bank toward financial recovery and institutional reform.
