KATHMANDU, Aug 2: Nepal Rastra Bank (NRB) took action against three commercial banks in the fourth quarter of the last Fiscal Year 2025/26.
According to the NRB, the Department of Banking Supervision of the central bank took action against the directors and CEOs of Rastriya Banijya Bank, Agriculture Development Bank and Prabhu Bank.
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The then CEO of Prabhu Bank Ashok Sherchan was fined Rs 500,000 in cash as per Sub-section 2 (c) of Section 100 of the Nepal Rastra Bank Act, 2002. Prabhu Bank was found repeatedly failing to follow the instructions of the NRB, while not classifying loans as per the guidelines and not making adequate loan loss provisions.
As per the NRB, Prabhu Bank’s CEO Sherchan was fined on personal basis after the mismatch was observed between loan details submitted by the commercial bank to the regulator and the details obtained from the bank's own software.
The central bank issued a warning to two government-owned banks for failing to abide by its rules. Rastriya Banijya Bank and Agriculture Development Bank were found not following the instructions as per regulations regarding freezing bank accounts of their clients on time.
