Prabhu Bank Chief Executive Officer (CEO) Ashok Sherchan has been arrested.

The CIB team arrested him today.

The police arrested him from the head office in Bijulibazar. Based on the report of the National Bank, the CIB arrested him for banking offences.

The police have also arrested the bank's Deputy Chief Executive Officer Maniram Pokharel and the bank's Chief Credit Officer Ribas Shrestha. A statement issued by the CIB said - Prabhu has caused damage to the bank by acting against the instructions of the National Bank and the prevailing law and is involved in the crime of misusing the loan by disbursing crores of rupees to various companies to hide the same crime....'

The CIB had raided the bank's central office in Bijulibazar on October 22 and seized important documents.

The CIB had earlier arrested Prabhu Group Chairman Devi Prakash Bhattachan on October 11. He is also a former UML MP. The CIB is investigating a complaint filed by Prabhu Management chairperson Kusum Lama regarding a Rs 980 million fraud.