Banking Khabar | Following the issuance of an arrest warrant against Prabhu Bank Chief Executive Officer (CEO) Suman Sharma, discussions have reportedly begun within the bank’s Board of Directors regarding his responsibilities and the bank’s future leadership.
An arrest warrant has reportedly been issued against Sharma and three others in connection with allegations of fraud and criminal breach of trust. Following the warrant, the Board has discussed issues including management continuity, the possibility of suspending the CEO, and alternative leadership arrangements if necessary, according to a board member cited in media reports.
Different Views Within the Board Over Suspension
The Board meeting reportedly discussed provisions in the bank’s employee regulations concerning suspension when a criminal case has been filed against an employee.
According to one director, since there is no separate regulation specifically governing the CEO, the bank should proceed under the existing employee regulations. However, another view reportedly emerged that the bank should consult Nepal Rastra Bank before making a decision concerning the CEO’s position.
Earlier reports stated that a criminal case against Sharma had been registered on Ashwin 1. It has been claimed that the bank’s employee regulations provide for automatic suspension when a criminal case is registered. However, questions have arisen over how that provision applies to the CEO position.
Options From Acting CEO to New Leadership
The Board has also reportedly discussed several options for managing the bank’s leadership depending on Sharma’s legal situation.
If Sharma is released on bail, the possibility of continuing his leadership has reportedly been discussed. If he is remanded in custody for trial, appointing an acting CEO has emerged as another option.
The Board has also reportedly considered appointing an acting CEO from within the bank or bringing in a new CEO from outside. In this context, the name of Janak Sharma Paudel has also reportedly been discussed as a potential leadership option.
However, no final decision on any of these options has been confirmed.
Suman Sharma Still Listed as CEO on Bank’s Website
Prabhu Bank’s official website still lists Suman Sharma as the bank’s CEO. This indicates that discussions within the Board and any formal decision regarding his position are separate matters.
According to previously published reports, the arrest warrant was issued on Ashwin 1. Sharma reportedly continued to attend the bank until Ashwin 13, after which he was placed on forced leave, according to the bank’s Information Officer Ravindra Dhakal.
Various media reports have also claimed that Sharma became unreachable following the issuance of the arrest warrant and was in Parsa. These details, however, are based on source reports and have not been independently confirmed.
What Is the Background of the Case?
The case against Sharma reportedly relates to a loan transaction from the period when he was CEO of Sunrise Bank.
In a case filed by Anjali International at the Parsa District Court, Sharma and officials of the then-Sunrise Bank have been named as defendants.
According to available details, a loan of approximately Rs. 38.994 million was approved in connection with Anjali International. The case reportedly involves allegations of fraud and criminal breach of trust after the loan amount allegedly remained unrecovered even after the collateral was auctioned.
The next course of the legal proceedings and the formal decision of Prabhu Bank’s Board will determine the future status of Sharma’s position and the bank’s leadership structure.
