Kathmandu, Dec. 1 -- The Central Investigation Bureau (CIB) of Nepal Police on Sunday arrested Chief Executive Officer of Prabhu Bank, Ashok Sherchan, on charges of banking fraud. The CIB acted on an arrest warrant issued by the Patan High Court under the Banking Offense and Punishment Act, 2007. The court granted CIB the detention order based on earlier investigations which pointed towards Sherchan's alleged role in misappropriation. CIB spokesperson Shiva Kumar Shrestha confirmed that the police detained Sherchan from the bank's central office in Babarmahal and began fresh interrogation.

Investigators accused Sherchan of violating directives of Nepal Rastra Bank and existing banking laws by illegally issuing loans to several firms, the...