Ashok Sherchan is widely regarded as one of the key figures who played a significant role in consolidating Nepal’s rapidly growing financial institutions into a stronger and more resilient banking system. Currently serving as the Chief Executive Officer (CEO) of Prabhu Bank Limited, Sherchan has led the institution as a commercial bank for the past 11 years.
His third term as CEO, which began on January 31, 2023 (Magh 18, 2079 BS), still has around one and a half years remaining. However, before the completion of his tenure, concerns have emerged within the bank’s senior management over what they describe as a planned “media trial” aimed at forcing him out of leadership.
Sherchan’s association with the institution spans nearly two decades. He became CEO of the then Prabhu Finance around 18 years ago and has since guided its transformation through multiple mergers, including Zenith Finance, Gaurishankar Development Bank, Kist Bank, and most recently Century Bank. Throughout these transitions, he continued as CEO, providing leadership continuity.
Recently, Sherchan faced scrutiny after being held by the Central Investigation Bureau (CIB) for 27 days, from mid-November to mid-December, in connection with an investigation into the alleged misuse of a Rs 270 million loan involving Prabhu Management Pvt. Ltd. Notably, this occurred even before any formal charges were filed. Following this, some members of the board reportedly attempted to prevent his return to executive duties, according to senior bank officials.
Despite Sherchan neither resigning nor nearing the end of his term, speculation about potential successors has surfaced in the media. Names such as former Nabil Bank CEO Gyanendra Prasad Dhungana and former NMB Bank CEO Sunil KC have been mentioned. Both, however, have publicly denied any discussions with Prabhu Bank regarding the position and stated they are not currently in the race.
Banking experts warn that such unverified speculation and media pressure can harm not only individuals but also the credibility, reputation, and stability of financial institutions. They emphasize that leadership continuity, due process, and transparent governance are essential for maintaining confidence in the banking sector and safeguarding financial stability.
