Banking News – Ashok Sherchan, currently under investigation by the Central Investigation Bureau (CIB) for alleged misappropriation of loans worth billions of rupees, has not withdrawn from the race to become the next Governor of Nepal Rastra Bank (NRB).

CIB initiated the investigation after uncovering alleged misuse of loans, facilitated by Sherchan through political influence and proximity to power centers. Despite this ongoing probe, Sherchan appears determined to pursue the top leadership position at the central bank.

The position of Governor demands a high level of ethical integrity. However, Sherchan—who served as the Chief Executive Officer of Prabhu Bank, a publicly listed company with investments from hundreds of thousands of shareholders—is still vying for the role.

The CIB began its investigation in early 2021, revealing that Sherchan had allegedly issued loans amounting to NPR 2 billion to Janaki Medical College, which is linked to his relatives. He is also accused of extending credit to Chirayu Hospital and issuing unsecured loans by creating fictitious borrowers and entities.

In mid-January 2021, the CIB formally requested all related documents from Prabhu Bank to investigate the loan files initiated under Sherchan’s leadership. However, using his influence, Sherchan reportedly managed to stall the investigation temporarily.

Despite being under investigation, Sherchan continues to seek leadership within the banking and financial sector. Though his position in the race for Governor may be weakened by the ongoing probe, he is actively lobbying power centers to strengthen his candidacy. He remains one of the top five contenders for the post.

If appointed, there are growing concerns that Sherchan’s past actions—including the misuse of a public institution and the investments of countless shareholders—could lead to further abuse of power within the central bank.