Nepal Rastra Bank (NRB) has taken disciplinary action against three Class ‘A’ commercial banks and their officials for violating regulatory directives during the fourth quarter of fiscal year 2025/26. According to details released by the NRB’s Bank Supervision Department, Rastriya Banijya Bank, Agricultural Development Bank and Prabhu Bank faced actions ranging from warnings to monetary penalties for various regulatory breaches. The most severe action was taken against former Chief Executive Officer (CEO) of Prabhu Bank Limited, Ashok Sherchan, who was fined Rs 500,000 under Section 100 (2)(c) of the Nepal Rastra Bank Act. The central bank said Sherchan was penalised for repeatedly violating directives issued by NRB, failing to maintain adequate loan loss provisions due to improper loan classification, and submitting information to the central bank that differed from data generated by the bank’s core banking system.
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