Kathmandu: A case has been registered against Prabhu Bank Chief Executive Officer (CEO) Ashok Sherchan in High Court, Lalitpur.
It is said that the appointment of Sherchan as CEO for the third time is illegal according to the provisions of the ‘Banks and Financial Institutions Act, 2073’ . Advocate Anita Thapa KC has registered the case last Friday.
Sherchan, CEO of Prabhu Bank, has previously served as the CEO of the bank for two terms. The third term is mentioned in the writ petition against the provisions of the Financial Institutions Act, 2073, article 29. There is a provision that ‘the tenure of the executive head will be maximum of four years and he can be re-appointed for another one term’.
Despite the provision of maximum two terms of working as Chief Executive Officer of commercial banks, the Rastra Bank through monetary policy had given the facility of one more term to the CEOs of the bank in the process of merger and acquisition. Prabhu Bank Limited and Century Bank Limited have already started integrated business after merger.
Nepal Rastra Bank is conducting an investigation along with the Central Bureau of Investigation on the basis of the letter against Sherchan and Prabhu Bank.
