NRB Takes Action Against Prabhu, Rastriya Banijya and Agricultural Development Banks

Nepal Rastra Bank (NRB) has taken regulatory action against Prabhu Bank, Rastriya Banijya Bank, and Agricultural Development Bank after its Supervision Department identified serious violations of banking regulations during recent inspections. Prabhu Bank was found to have committed major lapses in loan classification, failed to maintain adequate loan-loss provisions, and submitted inaccurate information to the central bank. As a result, former Chief Executive Officer Ashok Sherchan has been fined Rs. 500,000, while the bank's Board of Directors has been directed to implement corrective measures. Meanwhile, Rastriya Banijya Bank and Agricultural Development Bank were issued warnings for failing to comply with regulations related to the timely freezing of bank accounts upon requests from law enforcement authorities. NRB instructed both state-owned banks to prevent such procedural lapses in the future. The central bank said the action reflects its stricter supervision of financial reporting, corporate governance, and regulatory compliance, signaling greater accountability for both bank management and public sector financial institutions.